UK Payroll - CIS Suffered Report, Correct Xero to allocate credit notes correctly
IDEA - CIS suffered report to calculate the CIS suffered correctly.
ISSUE - If you apply a credit note to an invoice that has both CIS labour and CIS materials, Xero does not calculate the CIS suffered correctly. Even though the credit note is coded to the correct nominal code, Xero doesn't recognise this. This causes the CIS suffered report to reduce the deduction amount which is incorrect. This means the figure you submit to HMRC is lower than it should be. Meaning less of a refund of CIS suffered than it actually should be.
Lorraine Earnshaw
shared this idea
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Michael Anderson
commented
This is a massive glitch that can cause a headache when trying to rectify. Now I am aware of this issue, I will be thinking carefully about how I treat CIS credit notes in future.
Not good Xero Support, you really could do better with this. Especially when there are going to be small businesses and one man companies that won't be as tech or accounts savvy to understand this! -
Lorraine Earnshaw
commented
Xero Support effectively says you should issue one invoice for CIS Labour, one invoice for CIS Materials, and one CIS Materials credit note as a workaround.
How many of your customers would accept you invoicing them in this way?!