We have been using the new CIS feature with a number of our clients, we tend to advise two different ways depending on circumstances : 1) if client runs a payroll for Employed staff: Create a journal dated 5th of month as follows: Dr CIS Withheld £1000 Cr CIS Suffered £200 Cr Tax and National Insurance £800 (if you are CIS Gross ignore the CIS suffered line) Then raise cheque against Tax and National Insurance for total payment to HMRC 2) if you don't have employees, then raise cheque for payment to CIS withheld If you also suffer CIS then create journal from CIS Suffered to CIS withheld for amount Suffered. Note the CIS withheld account may not reconcile to £0 on 5th of month as CIS reports are on as paid basis but deductions are recorded in QBO at transaction/invoice date.
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This answer depends on the Control Account used for your suppliers, in most UK cases it's either Creditors or Accounts Payable, to save my typing I'll assume Creditors. Allocate the bank deposit to the payee name and the correct bank account and date etc, under Account choose "Creditors" and enter the amount and No VAT as vat code (if this is being completed using downloaded bank transactions choose supplier name and account detail as Creditor) If done correctly you should now see the deposit in the Supplier Account. If you have auto match credits turned on this next step may be unnecessary. I know it sounds strange but next to the deposit there will be an option to "Make Payment", click this, QBO should automatically bring the credit to the bottom of the cheque payment screen and total payment should be £0, and both deposit and credit should have a check mark and be paid off in full.
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