"How do I change my subcontractor's CIS deduction percentage?"
The CIS deduction percentage is the amount of CIS tax that's taken off most payments you make to a CIS subcontractor.
To change a subcontractor's CIS deduction percent:
- First, select the CIS subcontractor on: MenuPeople
- Then tap: TaxTax settingsCIS deduction percent
- Change it to the new percentage that HMRC's requested you to set it to.
- Then tap: Save
- And finally, all current and future paystubs paid to the CIS subcontractor are now set to deduct with the new CIS deduction percent.
You may notice:
- That the CIS deduction percentage is automatically set when you first add or re-verify a CIS subcontractor.
- The percentage that it's set to is based on an instruction sent by HMRC. Commonly, HMRC sets it to 20%.
- In most circumstances, you shouldn't have any reason to change it.
- However, on rare occasions, you may get a notice from HMRC asking you to change the CIS deduction percentage for one of your CIS subcontractors.
Keep in mind that:
- The CIS deduction percentage sets the CIS tax amount that's taken off every payment you make to a CIS subcontractor.
- The only exception that doesn't have a CIS tax deduction are "Qualifying CIS expenses" paid to the CIS subcontractor.
- Changing the CIS deduction percentage instantly applies to all current and future paystubs paid.
- Any paystubs that have already been paid remain unchanged, and use the previous CIS deduction percentage.
And that's it! That's all you need to do to change a subcontractor's CIS deduction percent!
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