Creating a Deduction Statement for a Subcontractor Payment

Transcription

1 Creating a Deduction Statement for a Subcontractor Payment By now you should have carried out the CIS Folder Setup, CIS Payments workbook Setup and the Deduction Statement Template Setup. If you have not done so you will need to do this before you can proceed. Firstly we will create a folder for the subcontractor in which we will save the Deduction Statement to. Then we will create and save the Deduction Statement for the subcontractor. Follow the instructions below: Keep the subcontractor invoice handy as you will need information from this when filling in the Deduction Statement etc. Important Note: When you are using the Deduction Statement Template workbook (as in these instructions) you must not use the Cut or the Drag and Drop functions. If you use the Cut or the Drag and Drop functions this will likely cause errors in the workbook. You can use the Copy and the Paste commands. From the desktop as below. Note: You will most likely have a few or a lot more icons on your desktop screen but this is not important. Using your mouse double left click on the Contractor CIS Tool Kit icon, this will take you to the CIS folder. 1

2 Next using your mouse double left click on the DS folder to open it. You should now see a screen similar to below. Next using your mouse right click in a clear area in the DS window do not right click on a folder or file. 2

3 Next move your mouse pointer over the New tab - the New menu will open. You should now see a screen similar to below. Next using your mouse left click on Folder. 3

4 Type on your keyboard the subcontractor name, i.e. for the subcontractor invoice that you are paying to give the new folder a name and then press enter on your keyboard. Note: The enter key is usually located towards the right side of your keyboard roughly in the middle. It usually has ENTER on it or an arrow similar to this or it may have both the ENTER and the arrow on it. Note: You should save all the Deduction Statements you create for this subcontractor to this folder. For this tutorial we are paying a subcontractor named John Smith so therefore we will enter J Smith to give the folder a name. 4

5 Next using your mouse double left click on the J Smith folder to open it. You should now see a screen similar to below. Next using your mouse right click in a clear area in the J Smith window. 5

6 Next move your mouse pointer over the New tab - the New menu will open. You should now see a screen similar to below. Next using your mouse left click on Folder. 6

7 Type on your keyboard PDFs to give the new folder a name and then press enter on your keyboard. You should now see a screen similar to below. Next using your mouse left click the Close button to close the folder. 7

8 Using your mouse double left click on the Contractor CIS Tool Kit icon, this will take you back to the CIS folder. You should now see a screen similar to below. Next using your mouse double left click on the Deduction Statement Template workbook to open it. 8

9 If the screen does not look like below, using your mouse left click on the VAT Reg SR worksheet tab to open it. The screen should now look like below. Note: If the window is not full size (not filling the whole screen) similar to below you should then using your mouse left click the Maximise button. 9

10 Have a look at the screen below to familiarise yourself with it. Note: You may wish to move the rows up and down so as to view all of the Deduction Statement. You can do this by using the scroll wheel on your mouse or using your mouse you can left click on the scroll bar up or down arrows. You can also use the arrows on your keyboard to move around the worksheet. Firstly you need to select the appropriate Deduction Statement worksheet for this particular subcontractor. The options are as below. Note: The underlined headings below relate to the worksheet tabs at the bottom of the screen. VAT Reg SR Use for VAT registered, standard CIS deduction rate subcontractors Non VAT Reg SR Use for Non VAT registered, standard CIS deduction rate subcontractors Gross Pay VAT Reg Use for VAT registered, gross paid subcontractors VAT Reg HR Use for VAT registered, higher CIS deduction rate subcontractors Non VAT Reg HR Use for Non VAT registered, higher CIS deduction rate subcontractors Gross Pay Non VAT Reg Use for Non VAT registered, gross paid subcontractors Using your mouse left click on the appropriate worksheet tab. 10

11 Note: If you do not know which deduction rate to use for this subcontractor you should contact HMRC or your accountant. Note: If you are unsure as to whether this subcontractor is registered for VAT you should take a look at the subcontractor s invoice to see if the subcontractor has added VAT to the invoice. If the subcontractor has added VAT to the invoice this would imply that the subcontractor is registered for VAT. Contact you accountant if you are unsure. Note: You may not be able to see all of the worksheet tabs as listed above. To see more tabs you do as follows. Using your mouse left click on the tab arrows to move the tabs sideways in order to see more hidden tabs. For this tutorial we will create a Deduction Statement for a subcontractor named John Smith. John Smith is registered for VAT. John Smith is a Standard CIS deduction rate subcontractor. John Smith has charged us for materials at plus VAT. The total of the invoice is 2, plus VAT. The total invoice including VAT is 2, We are making the payment to him on the 9 th Apr We are making the payment by Bank Transfer. 11

12 As in the above step you should have now selected the correct worksheet tab for this subcontractor. You should now see a screen similar to below. Next using your mouse left click on the File menu button. If you are using Microsoft Excel 2007 you will left click on the Office Button instead. The Office Button is the round button with the 4 small coloured boxes in it, which is located in the same position as the File menu button above. Note: Throughout this tutorial if we make mention of the File menu button, this should be taken to mean the Office Button if you are using Microsoft Excel

13 Next using your mouse left click the Save As button. For Microsoft Excel 2013 & 2016 you will see a screen similar to below. For Microsoft Excel 2007 & 2010 skip the step below go to the next page and carry on from there. Next using your mouse left click on the CIS folder to select it. 13

14 You will see that the text in the File name box is highlighted as in the above screen. Now name the file by typing in on your keyboard the subcontractor name, year, month, and day. Example: For a payment to a subcontractor (AB Builders Ltd) on 21st March you would enter the file name as AB Builders Ltd st. Note: Do not press enter on your keyboard after you have entered the file name. For this tutorial we are paying a subcontractor named John Smith on the 9 th April 2014 so therefore we will enter J Smith th. 14

15 Next using your mouse double left click on the DS folder to open it. You should now see a screen similar to below. Next using your mouse double left click on the J Smith folder to open it. 15

16 Now using your mouse left click on the Save button. 16

17 Next using your mouse left click in the K9 cell. Now using your keyboard enter a Deduction Statement number. Note: Enter in a date format, e.g. for a payment made on the 11 th May 2014 you would enter DS. The DS added to the end is the abbreviation for Deduction Statement. Note: If you are paying more subcontractors on the same day just increase the number before the DS. E.g. For the next subcontractor you would enter DS and so on. For this tutorial we are using the payment date of 9 th Apr 2014 and so therefore we will enter DS. 17

18 Next using your mouse left click in the I13 cell. Now enter in the payment method that you are using to pay the subcontractor as per the below. Enter as in this column below Automatic Payment AP Bank Transfer BT Cash Cash Cheque - use cheque number Credit Card Credit C Debit Card Debit C Direct Debit DD For this tutorial we are paying the subcontractor by Bank Transfer and so therefore we will enter BT. 18

19 Next using your mouse left click in the K13 cell. Now enter the payment date. I.e. The date you are paying the subcontractor invoice. Note: Enter in the day number, then the first 3 letters of the month followed by the last 2 digits of the year. Example: For a payment made on the 1st July 2012 you would enter 1-Jul-12. For this tutorial we are using the payment date of 9 th April 2014 and so therefore we will enter 9-Apr

20 Next using your mouse left click in the K15 cell. Now enter the CIS month end date that this payment relates to. Note: Enter in the day number, then the first 3 letters of the month followed by the last 2 digits of the year. Example: For a CIS month end date of 5 th August 2012 you would enter 5-Aug-12. Note: The CIS month runs from the 6 th of the month to the 5 th of the following month, e.g. 6 th of June to 5 th July. In the case of any payments made to subcontractors between and including the dates of 6th June to 5 th July the CIS month end date for these payments would be 5 th July. For this tutorial our payment date is the 9 th April 2014 so it falls within the CIS month of 6 th April to 5 th May so this makes our CIS month end date the 5 th May 2014 and so therefore we will enter 5-May

21 Note: You may wish to move the rows up and down so as to view more of the Deduction Statement. You can do this by using the scroll wheel on your mouse or using your mouse you can left click on the scroll bar up or down arrows. You can also use the arrows on your keyboard to move around the worksheet. 21

22 As above you should now see a screen similar to below. Next using your mouse left click in the I20 cell. Now enter the invoice number from the subcontractor s invoice. For this tutorial we are using the subcontractor invoice number of

23 Next using your mouse left click in the I23 cell. Now enter the subcontractor ID number. Note: This is the number that you have assigned them in the CIS Payments workbook. You do not have to use subcontractor ID numbers if you do not want to. If you are not using subcontractor ID numbers leave this blank. For this tutorial we are using the subcontractor ID number of 1. 23

24 Next using your mouse left click in the B20 cell. Now enter the subcontractor name. For this tutorial we are using the subcontractor name of John Smith. 24

25 Next using your mouse left click in the B23 cell. Now enter the subcontractor UTR number. Note: The UTR number is a 10 digit number that the subcontractor should have supplied to you, so that you or your accountant could verify them with HMRC. Subcontractors must be verified with HMRC, as this will give you the information as to what rate of CIS deductions to apply to them. If you are unsure about this you should contact your accountant. For this tutorial we are using the subcontractor UTR number of

26 Note: You may need to move the rows up so as to view more of the Deduction Statement. You can do this by using the scroll wheel on your mouse or using your mouse you can left click on the scroll bar down arrow. You can also use the arrows on your keyboard to move around the worksheet. 26

27 Next using your mouse left click in the B26 cell. In this box enter the subcontractor verification number - only enter this if you are making deductions at the higher rate. Note: This is the number that you were given for this subcontractor when you or your accountant verified them with HMRC. For this tutorial we will leave this blank as our subcontractor has CIS deductions at the standard rate. 27

28 Next using your mouse left click in the K28 cell. Now enter in the total invoice amount from the subcontractor s invoice. Note: If the subcontractor is VAT registered, enter the total invoice amount excluding VAT. If the subcontractor is not VAT registered, enter the total invoice amount including any VAT they have paid on the materials. For this tutorial we will enter an Invoice Total of

29 Next using your mouse left click in the K30 cell. Now enter in the materials amount from the subcontractor s invoice. Note: If the subcontractor is VAT registered, enter the materials amount excluding VAT. If the subcontractor is not VAT registered, enter the materials amount including any VAT they have paid on the materials. For this tutorial we will enter a materials amount of

30 Next using your mouse left click in the B26 cell. Next move the rows of the worksheet up to view the bottom potion of the worksheet to familiarise yourself with the Deduction Statement. You should now see a screen similar to below. Now move the rows back down so you are back at the very top of the worksheet. 30

31 Next using your mouse left click on the File menu button. You should now see a screen similar to below. Next using your mouse left click on the Save button to save the changes you have made. 31

32 We will now print out a copy of the Deduction Statement so we can then use this to make an entry of this payment into the CIS Payments workbook when we have finished. Next using your mouse left click on the File menu button. You should now see a screen similar to below. Next using your mouse left click on the Print button. 32

33 If you are using Microsoft Excel 2007 a print dialogue box will open instead. For Microsoft Excel 2010, 2013 & 2016 you should now using your mouse left click on the Print button, to print out a copy of the Deduction Statement. If you are using Microsoft Excel 2007 you should instead, using your mouse left click on the OK button located in the lower right area of the print dialogue box. This will print out a copy of the Deduction Statement. Note: Put this copy aside so you can then use it later to make an entry of this payment into the CIS Payments workbook. You should enter this payment into the CIS Payments workbook immediately after finishing the subcontractor Deduction Statement. 33

34 We will now save a copy of the Deduction Statement as a PDF. We will do this so you can send the subcontractor a copy of the Deduction Statement by if you wish to. Note: By law you must provide your subcontractors with all the Deductions Statements for all the payments that you make to them. Note: You can as above send the Deduction Statements in an electronic format but the subcontractor must agree to this otherwise you must provide hard copies to them. Next using your mouse left click on the File menu button. 34

35 Next using your mouse left click on the Save As button. For Microsoft Excel 2013 & 2016 you will see a screen similar to below. For Microsoft Excel 2007 & 2010 skip the step below go to the next page and carry on from there. Next using your mouse left click on the J Smith folder to select it. 35

36 Next using your mouse double left click on the PDFs folder to open it. You should now see a screen similar to below. Next using your mouse left click the down arrow in the Save as type box which will open a list of options. 36

37 Now using your mouse left click on PDF. You should now see a screen similar to below. Next using your mouse left click on the Save button. 37

38 Note: If the PDF you just saved as above opens, then using you mouse left click the close button (the X in the top right corner of the PDF viewer window) to close it. You can now delete the worksheets that are not required for this subcontractor if you wish. Note: Do not delete the Instructions and Setup tabs. To do this you do as follows, using your mouse right click on one of the worksheet tabs that you would like to delete. A menu will appear. Note: You do not have to delete the worksheets that are not required if you do not want to. For this tutorial we will delete the Non VAT Reg SR worksheet. 38

39 Next using your mouse left click on Delete. You should now see a screen similar to below. Next using your mouse left click on Delete. 39

40 Follow the above steps to delete the other worksheets you do not require. Note Again: Do not delete the Instructions and Setup worksheets. For this tutorial we will delete the remaining worksheets that are not required for this subcontractor, these being: Gross Pay VAT Reg VAT Reg HR Non VAT Reg HR Gross Pay Non VAT Reg 40

41 You should now see a screen similar to below (Example DS). This worksheet is provided as an example only, of what a completed Deduction Statement should look like. Take a look at it - you may find it helpful. Next using your mouse left click on the worksheet tab that you filled in for this subcontractor. For this tutorial we used the VAT Reg SR worksheet tab. 41

42 Next using your mouse left click on the File menu button. You should now see a screen similar to below. Next using your mouse left click on the Save button to save the changes you have made. 42

43 Next using your mouse left click on the Close button to close the workbook. You should now see a screen similar to below. Next using your mouse left click on the Close button to close the CIS folder. 43

44 All done. Note: You should now get the Deduction Statement that you printed out earlier and use this to enter the details into the CIS Payments workbook immediately. Note: You are required by HMRC to give your subcontractors a copy of all the Deduction Statements relating to all payments that you make to them. Note: To make it faster to fill out any future Deduction Statements for this subcontractor you can open the last Deduction Statement you created for this subcontractor and Save As, enter the new file name and save. I.e. Follow the instructions as In this tutorial but instead of starting by opening the Deduction Statement Template you would open the last Deduction Statement you created for this particular subcontractor. This will save you entering their name etc. again you will only have to update the relevant details for this payment. Screenshots used with permission from Microsoft 44