CIS Tax Return

Question

Hi everyone, 
 We have an agency registered as CIS subcontractor and they provide the labour works for our company. All these invoices are entered in Sage under n/c 5203 (CIS Labour) and declared in CIS Tax Return to HMRC, but sometimes they also recruiting for us the people which are employed directly by us and we are paying them a fixed fee for they services. This fee is under n/c 7200 (Legal & Professional fee). Therefore, could you please let me know if the invoice for the legal fee should be declared in CIS Tax Return and if yes, how I can include this invoice in CIS Return and also keep it in Sage under n/c 7200? 
 Many thanks in advance

BradleyWells87 · Answer

Hi Rody, 
 Their recruitment fee, which you mentioned you put under 7200, does not fall under the CIS Scheme & therefore does not need to be declared on your CIS Return. 
 I hope this helps.

Andy Rickeard · Answer

Hi Rody,

Thanks for using Sage City.

If those people are employees of your company, rather than subcontractors, that would suggest they would not need to be on the CIS Return, however, with specific situations like this, I would always suggest contacting HMRC direct so they can advise how they should be processed.

If this has helped, please click More > Verify Answer.

Regards

Andy
Sage UKI

Sage 50 Accounts

CIS Tax Return

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