Use these steps if a subcontractor has been having tax deducted from labour invoices incorrectly. The process reverses the original invoices, corrects the subcontractor setup, re-enters the invoices correctly, and reruns the CIS return.
Reverse the original invoices
Use Corrections, or raise credit notes via Purchase Ledger > Transactions > Credit Notes. Select the same Purchase Analysis as the original invoice.
Pay those credit notes
Click Purchase Ledger > Transactions > Remittance Cheque.
Pick up the credit note. This creates a negative payment for the same value as the original invoices.
Check the subcontractor setup
Check whether the subcontractor is set up correctly by opening their Supplier Record and clicking the CIS tab.
Redo the invoices
If the subcontractor is correctly set up as taxable on labour but the invoice was not for labour, use a non-labour (non-taxable) Purchase Analysis code when re-entering the invoice.
Rerun the CIS return
HMRC will see the new return for that month and replace the original. đ Note: The Tax Months shown are based on the system date on the machine running Dimensions. If the required Tax Month does not appear, log out of Dimensions, change the date in Windows to a date within that Tax Month, then log back in to Dimensions. The Tax Month should then be available to run or submit.