Hello everyone, this is my first posting but was wondering if anyone can help.
i do the book keeping for a ltd company within the construction industry. I currently calculate the pay for the subbies having verified if necessary then make payment and pass all the relevant paperwork over to the accountant for them to do the hmrc submission. Now the company is going to be changing their accountant but the new accountant doesn't offer a payroll service and suggested I just do the whole thing.
i don't have a problem with this but was just wondering the thoughts of those that do this, will I be biting off more than I can chew?
i understand CIS reasonably well and have looked at both moneysoft and Able internet payroll software. Moneysoft so far is ahead of Able however Able appeals due to being able to access from both workplace and home. I'm in the very lucky situation of coming and going from work to suit me. Any thoughts to these two software
Hi
Ive never used Able but I do use Moneysoft for their CIS returns and Payroll. Its very easy and intuitive to use and they have a good helpdesk (albeit not open at weekend, although Im not sure any are!) I do only use Moneysoft at home - worth a chat with them to see if you can load the licence in both places and then transfer data/back up via USB or dropbox. (Ive done that very easily with 12Pay in the past but never had the need with Moneysoft!)
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Having read loads further on CIS over the last week or so find I'm still a little uncertain about the offsetting for CIS, as I mentioned the company is a Ltd company so understand that the CIS they suffer can be offset against the CIS they are due to pay, is this done on their EPS, I thought this was relating to PAYE only?
My understanding is that CIS can be offset against PAYE/NI and any further can be used against CIS suffered
If my understanding is correct how do I actually do it? May be I'm not looking in the right place or my understanding is completely wrong but there doesn't seem to be much information available for this.
Monies paid to the directors are all fairly small payable with dividends and money I receive is below both tax & NI threshold if that is of any help.
If any one could help clarify for me I would be ever so grateful as I need to confirm by midweek if I'm prepared to do this for them
Hi
Sorry for the delay in responding, just been bombed with work.
I dont have any clients in a similar scenario where offset is required so I have to say Im not up to speed with the requirements. Ive done a little bit of digging but it might be worth clarifying the position with the CIS helpline at HMRC. I found them really good and a lot quicker to get through to than the rest of HMRC, although someone else on here might see your post and be able to give better advice.
Anyway what I found:-
You can offset your CIS deductions taken from payments received against any PAYE payments due to HMRC/Class 1 National insurance contributions / CIS deductions the company has made from its own subcontractors.
Under RTI -
Limited company employers that have CIS deductions taken from their own income will also need to complete an EPS showing these deductions taken for the tax year to date in order to subtract these from the amount of PAYE due to be paid to HMRC.
The CIS300 monthly contractor returns will continue unchanged and still need to be completed and submitted monthly as now. NB - These are completed in payroll software separately from the EPS, usually. Late filing penalties for missing the CIS300 due date will also remain unchanged NB - They charge £100 a month for not sending nil returns!!
The PAYE charge (taken from the FPS returns) and the CIS charge (taken from the CIS300 return) together will form the total charge for the month (after deducting any amounts on EPS returns) and will be compared with what the employer/contractor has paid for that month.
CIS deductions taken from limited company subcontractors and shown on the EPS will be offset against the companys PAYE/CIS liabilities for the year to date, with any excess CIS deductions being carried forward each month until the end of the tax year.
Limited companies that have an excess of CIS deductions over and above the amount of tax/NICs/CIS that they are due to pay to HMRC in their capacity as an employer will not be able to claim a repayment of these CIS deductions until:
The final FPS for the year has been submitted (due by 19 April each year where payments to employees are made in the period 6 March to 5 April)
The company has paid all amounts due to HMRC for the tax year in their capacity as an employer/contractor
The tax year in which the CIS deductions were made from the company has ended.
If you submit an EPS to report if a nil payment is due for the month, a nil CIS Monthly Return will also still be required.
From Moneysoft help files:
If the employer is itself both a Limited Company and a CIS Subcontractor who has deductions made from payments it receives, these deductions may (from 6-Apr-02) be set-off against the Tax and NIC payments it makes for its own employees.
Select Employer - CIS Deductions Set-off from the menu, and enter the total amount of deduction for each month.
These amounts will be set off against the Tax and NIC due as shown on the Pay - Tax & NIC Actually Paid screen, and reported with the RTI Returns.
The Deductions Setoffs over the year can be reported using the Analysis HMRC Funding Report menu option.
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
If the employer is itself both a Limited Company and a CIS Subcontractor who has deductions made from payments it receives, these deductions may (from 6-Apr-02) be set-off against the Tax and NIC payments it makes for its own employees. Select Employer - CIS Deductions Set-off from the menu, and enter the total amount of deduction for each month. These amounts will be set off against the Tax and NIC due as shown on the Pay - Tax & NIC Actually Paid screen, and reported with the RTI Returns. The Deductions Setoffs over the year can be reported using the Analysis HMRC Funding Report menu option.
I knew Moneysoft was a big help in this respect as I did it a couple of years for someone, but didn't have time to check it out yesterday.
If it's not too late for Lizzy to get Moneysoft, I would definitely recommend it.
