CIS 20% tax deduction from total rather than adding 20% to total

zekeb007zekeb007 Member Posts: 6

Please someone explain how I can create an invoice to have the 20% CIS TAX deducted from the Labour TOTAL rather than 20% being added


  • davidwhite136davidwhite136 Member Posts: 2

    hi zekeb007 did you find a solution as I'm having the same issue

  • zekeb007zekeb007 Member Posts: 6
    No apart from you, I was surprised when I got a response from you. Please let me know if you find a resolution,
  • alexlewiszarkosalexlewiszarkos Administrator Posts: 480 admin

    Hi @davidwhite136 @zekeb007 . Can you explain to me the use case or your work flow as to why you would want the tax to be deducted from the total amount being charged?

  • davidwhite136davidwhite136 Member Posts: 2
    Hi alexlewiszarkos I work in the construction industry (cis) and my tax is deducted from source.
    It would be handy to invoice with the tax removed
  • zekeb007zekeb007 Member Posts: 6
    I too need to be able to invoice the NET AMOUNT showing 20% CIS TAX taken out in the Total Amount box.
    Is this option available please ?
  • CharlotteCharlotte Member Posts: 695 admin

    Hi @davidwhite136 @zekeb007 thanks for your patience. I've been working through this with my team this morning and on the advice of our Product Manager who is most experienced with the ins-and-outs of tax regulations in the UK, I'm going to recommend talking to an accountant or bookkeeper in your region. (One of our members might be able to help.) There isn't a feature in Wave that is specifically suited to this requirement. Given the tax implications, risk of penalty, and so on, I don't want to advise a workaround that could create problems for you in the long run. I'm sorry for the time it took to get you a response. If we can help with anything else, please don't hesitate to ask.

  • masoncarpentrymasoncarpentry Member Posts: 1
    Hi there
    I have just joined and now realise that there is no ability for CIS tax deduction at source.
    This is a requirement for all sub contractors in the uk construction industry.
    To say “go and see an accountant “ is a major cop out and unhelpful as we are trying to take control of our finances away from the likes of that.
    All it would need is the ability to add a minus sign in front of the tax option much as I have done in xero for two years now. Quick books also has this option.
  • zekeb007zekeb007 Member Posts: 6
    Well said Masoncarpentry,
    I agree a simple change to a minus (-) sign in their algorithm would help out immensely.
    Saying they could be liable for tax implications is absurd, it’s more likely for us to get our invoice totals wrong with the way things are currently with only having the including tax option and not being able to have after tax total option at all.

    Rather annoying for us who want an easy CIS compatible invoice template, WAVE admin should take our requirements a bit more seriously if they want to be considered suitably adequate, conscientious global leaders in accounting software.
  • alexlewiszarkosalexlewiszarkos Administrator Posts: 480 admin

    Hi @masoncarpentry . Thanks for your input and feedback on this. It's valuable for us to know exactly how this applies to your business - and in this case the UK construction industry - as it provides us with more insight into adding this feature and how it would help. With this being said, I can't guarantee that this feature will be implemented, but your suggestion of adding a minus in front of the tax option would definitely be a great solution for it. I'll pass your feedback along to the team.

  • zekeb007zekeb007 Member Posts: 6
    Awesome, many thanks for the acknowledgment of how important this feature would be to us in the UK l, invoicing CIS 20% Net amounts
  • SpaceartSpaceart Member Posts: 3

    I m yet another UK Construction industry member who would love to see this ' minus' option,
    At this moment I need to shift to Quickbooks to be able to rise CIS invoices!

  • zekeb007zekeb007 Member Posts: 6
    Great the more UK based CIS operatives whom raise this massive issue the better, thanks and hope for our sake it gets remedied ASAP
  • SpaceartSpaceart Member Posts: 3

    I dont think they care though,still not enough voices I suppose!!!

  • Zoe_caffZoe_caff Administrator Posts: 376 admin

    Hey @Spaceart , we definitely do care! Your feedback is valued and not going unnoticed.

  • SpaceartSpaceart Member Posts: 3

    Well Zoe,talk is cheap...
    Why then nothing has been done from 29 of January where the issue was raised first?
    Its more than 4 months now...

  • ExpertPExpertP Member Posts: 2

    As I mentioned in another similar thread, we need the ability to create a new tax ourselves in the negative (it would essentially be minus 20% as opposed to plus 20%)

  • Robin59Robin59 Member Posts: 2

    I would think a simple minus (-) figure in their algorithms would also be helpful when adding a prompt payment discount/early settlement discount to the invoice which I cannot find a way to do?

    Possible requires a new thread/topic...

  • MerlinAccounts_UKMerlinAccounts_UK Member Posts: 157 ✭✭✭

    The CIS deduction isn't an actual deduction from your invoice value but rather a deduction from the amount being paid to you in settlement of your invoice. You should not therefore be trying to tweak your invoices to show this. What you need to do is match the payment received against your invoice, leaving a 20% balance outstanding. Then, using (for example) the cash account, enter the CIS tax first as if it is a payment for your invoice, and then entering a payment in your cash account and allocate that to your Balance Sheet under perhaps Current Assets with a new heading called CIS deductions. If you are offsetting against PAYE deductions/CIS deductions made by you from staff/sub-contractors you should put it under liabilities with your PAYE deductions so that it naturally offsets against these.

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