I understand that deducting with held tax should only show a rate or an amount and that this text should not be changed to CIS, Freight etc. Looking at the forum it states that a deduction which is different to this should be added as a line item and then allocated to the appropriate account. How do I allocate this to an appropriate account to show it as a deduction (negative figure) so that the balance due is correct?
You need to provide more specific information about your question. What is the purpose of the withheld tax? Is it tax on income a customer is required to withhold and pay to the tax authority on your behalf? Is it VAT you are being charged on a purchase? Is it VAT on an import that was not paid to a supplier? All have different implications. Provide an explicit example.
As for how you enter amounts, if you are using the correct transaction form, virtually all entries to Manager will be positive. Manager figures out whether to add or subtract them to posted accounts based on context.
Hi Tut,
It is a tax (CIS - construction industry scheme) that the company is required to pay and invoice to the customer, but the customer witholds payment and pays the tax authority on our behalf e.g.
Description Amount
Materials supplied 2,059.99
Labour including CIS payment £646.63 3,233.32
Sub-total £ 5,293.31
VAT 20% £ 1,058.66
Total £ 6,351.97
Withholding tax £ 646.63
Balance due £ 5,705.34
I want to show this line as CIS deduction rather than withholding ta, but from reading other questions on the forum I can see that where I have shown the withholding tax above, it seems that this is not the correct place to show this item, and it should be shown as a line item and alloated to the appropriate account, but I am unsure how to do this so that the balance due is correct.
As you can probably guess, I am very new to this with very little book keeping experience. I love Manager, it is a great tool, and I am sure will be even more so, once I can work out how to do this correct…
A
I’m no expert on your CIS tax scheme, but there is a box to check on sales invoices for withholding. Once checked, you can select an actual amount or input a percentage rate. This is applied to the line item and deducted from the balance due:
This line item:
produces this sales invoice:
Create a new test business and play around with this to see if its doing what you want.
This is where I was adding the amount, as rate varies too much, but ideally would like to show text as Withholding CIS (inserting amount) rather than Withholding Tax, so that clients are clear that they are witholding CIS and not VAT as the amount for both is the same). If this text can be changed this will work perfectly for me.
Thank you, this looks like a great solution. Just tested and works perfectly. Really appreciate this guidance.
Hi Can we deduct Tax on Purchase Invoice? (Like on Sales Invoice we have withholding Tax)
And can we deduct multiple taxes on Purchase which subtracted from total of purchase invoice?
@Promo_Brick, please do not send personal messages with general questions. Your post has been added to the topic you quoted in the public forum.
Your question is not clear. If you are asking how to account for withholding tax on purchase invoices, see this Guide: Manager Cloud. The last major section addresses purchase invoices.
If you are asking whether different tax codes can be applied to different line items on a purchase invoice, the answer is yes. They will be summarized individually in the totals section. But they won’t be deducted, they will be added.
Hi Tut
This is income Tax I deduct on a purchase invoice from Total from supplier and pay to government.
Its different for different Supplier e.g
- For product it is 4.5% Income Tax and 1% Sales Tax on Same invoice
- 2% on Freight (Not on expense)
- 10% for services (Not on expense)
Let me explain e.g total PI value is 1100, 1000 is expense and 100 is services. I want to deduct 10% Services tax on services only. For this I was forced to make negative percentage in Tax Codes to deduct Tax on services only:
For serial number (1) 1% sales Tax and 4.5% Income Tax, I was unable to enter multiple Tax in Negative software won’t allow me so i entered 5.5% Custom Tax code to deducted from Total
Suggest me if there is a solution for that ?
Secondly if i can make a non-inventory item for all of these three Four Taxes (1% , 10%, 4.5%. 2%) and deduct them as negative entry in invoice to justify and inform my supplier about tax deduction on total as Liability and then pay in expense making heads in Liability and Expense respectively as below: (Is that OK?)
Awaiting for your kind response
I have got the solution in this Manager Cloud
Thanks
@Promo_Brick, that was the link I sent to you in the first place.