Customizing
To customize extended withholding tax for the Construction Industry Scheme for use in the United Kingdom, you
Carry out the generic Customizing activities as described in Settings for Extended Withholding Tax: Overview. In some of these Customizing activities, you make settings that are specific to the United Kingdom.
Maintain the withholding tax details of each company code.
All of the withholding tax types are customized as follows:
The net payment amount, less any cash discounts, is the tax base
Tax is rounded according to commercial rounding rules
Withholding tax is not accumulated
When you post a payment, you can overwrite the tax base and the tax amounts proposed by the system.
All of the withholding tax codes as customized as follows:
The entire payment is subject to withholding tax
When you come to post a vendor payment, the system creates a separate line item for the withholding tax
The tax is withheld at a percent specified by HMRC
For generic information, see Defining Withholding Tax Types and Defining Withholding Tax Codes.