Self billing

Question asked by Martin Hannington 6 years ago

Hi we run a subcontractor business in the construction industry as such we have to provide an application for payment to the main contractor, this must not be a tax invoice. At the moment we just send a normal invoice with CIS listed, however this then causes us a problem if the main contractor has made an adjustment to the amounts as we cannot adjust a CIS invoice, so need to cancel it and reissue a different invoice, in this case the payment details do not match the payment details. Is there a way of sending an application for payment to the main contractor which is not fixed that we can then adjust if need be, before turning this into an invoice which matches the new amount sent back from our application amount? Regards

Martin

3 Replies

Hi Martin,

Unfortunately you will not be able to adjust the CIS amounts as they are fixed. However you can utilise the purchase order feature which will allow the main contractors to edit the unit price and create the bill.

I hope that this has been helpful.

Thanks

Anan

HI Sorry i forgot to say that this we have self billing agreement between us and the main contractor

Hi Martin

I presume you're using the CIS function within Clear Books that automatically shows CIS on the invoice and then deducts said amount from the total due and pays it to a withholding tax account?

If so, perhaps consider switching it off for a start. I act for many CIS contractors and don't use the built in CIS functionality for your exact reason. I prefer to invoice as normal then set up a separate bank account called CIS and 'pay' the 20% there once amounts have been finalised and payment received. I'm happy to go into further detail on that if need be.

Just out of interest, are they amending the invoices because they don't agree with the figures or because they're applying main contractor discounts and/or retentions?

Hi Martin,

Unfortunately you will not be able to adjust the CIS amounts as they are fixed. However you can utilise the purchase order feature which will allow the main contractors to edit the unit price and create the bill.

I hope that this has been helpful.

Thanks

Anan

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