CIS - File for overpayments allocated to a CIS invoice
Yes that's right. Let's say you pay a subby £150 in advance and allocate that as an overpayment on their account from the bank feed. You then get an invoice from them a couple of weeks later for £500 and deduct CIS of £100 leaving £400 outstanding. You allocate the overpayment from the account of £150 and pay your subby the balance of £250. The system will only declare CIS on the £250 element of what you have paid. You have to know an overpayment has been allocated, reverse it and allocate the payment directly to the invoice for it to be able to declare the CIS correctly. Xero say this is not a problem and it is working as designed. Why on earth you'd design it that was is beyond me. I'd like to see the CIS paid across when the overpayment is allocated.
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Becky Jeffery commented
This is imperative to working out the correct CIS, especially when it comes to CIS reclaims from HMRC. After completing the reconciliation, my balance was out and couldn't see why, it was down to the overpayments!!
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Katie Hackling commented
CIS should be paid on the total paid to a subcontractor. Currently no CIS is declared on Xero's CIS reporting either when the overpayment is made or when it is allocated.
this needs sorting out! -
Jessica Abrahams commented
I've just had this!! I have an absolute love hate relationship with CIS on Xero- it could be so good but annoying things like thing make it poor.