VAT Notes for Construction Industry Businesses – VAT on the Domestic Reverse Charge and Common Zero-Rated Applications Domestic Reverse Charge This was introduced in April 2021 as an attempt to prevent VAT fraud in the construction industry. This introduced the concept of END USER as being important when accounting for VAT. Because building work often…
From today (6th April 2021), all public sector clients and medium or large-sized private sector clients will be responsible for deciding their worker’s employment status. This includes some charities and third sector organisations. If the off-payroll working rules apply, your worker’s fees will be subject to Income Tax and National Insurance contributions. For further information,…
Domestic Reverse VAT Charge for Building and Construction Services Croner-i have provided the following notes regarding the new rules: Overview The domestic reverse charge (referred to as the reverse charge) is a major change to the way VAT is collected in the building and construction industry. It comes into effect on 1 March 2021 and…
Croner Taxwise have issued the following notes in respect of the recovery of VAT incurred prior to VAT registration: The entitlement to recover VAT on stock and assets on hand at registration as if it were input tax is contained in regulation 111 of the VAT regulations 1995. In the case of a limited company,…
The implementation of domestic reverse charge for construction services, which has caused much consternation for the construction industry, has been delayed until 1 October 2020. Full details can be found in Revenue and Customs Brief 10 (2019): domestic reverse charge VAT for construction services – delay in implementation.
A major change in the way Subcontractors invoice Contractors for services provided within the construction industry (being CIS supplies) takes effect from 1st October 2019. In summary, where a Subcontractor makes a CIS supply of services to a Contractor then VAT should not be charged by the Subcontractor and VAT should not be claimed…