Question asked by Keith Duffy 4 weeks ago
This is my first time submitting to HMRC for MTD. I am a sole trader and can see my CIS deductions on the report available via my dashboard for Q1. Should these deductions be visible on my submission to HMRC for Q1 income and expenses? Currently, they do not show.
I just wanted to check before I submit my Q1 report. Thank you for any guidance on this.
Hi Keith,
The Invoices (Gross Revenue): Invoices coded to "CIS labour revenue (20%)" must be included in the Q1 calculation. Under MTD for Income Tax, a sole trader is required to report their total gross business income (turnover before any deductions) every quarter. Therefore, the full pre-deduction amount of those sales invoices correctly populates the "Turnover" box for the Q1 update.
For the CIS deductions, the contractors send monthly CIS returns which submits the withheld tax for the subcontractors. When the subcontractor views their MTD tax return, they will see these deductions already pre-populated by HMRC in the CIS deductions area, and will be automatically used to reduce their tax liability.
Tommy
Best answerThank you, Tommy. This is very helpful.
Hi Keith,
No problem at all - you're very welcome!
Tommy
You must 