Accounting News
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Construction Industry - Domestic Reverse Charge VAT

The domestic reverse charge is a major change to the way VAT is collected in the building and construction industry. It will come into effect on 1 March 2021 and has been bought in to prevent missing trader fraud. The customer receiving the service will pay the VAT due to HMRC rather than paying the supplier.
The reverse charge will apply to you if:
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You are VAT registered
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The services you supply are standard or reduced VAT
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The supply is with the scope of the Construction Industry Scheme
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Will apply to both labour & materials
It will not apply if:
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The services are supplied to an end user
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The supplies are zero rated
We understand this is a major change, so we recommend that you:
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Check if your customer has a valid VAT no
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Check your customer CIS registration
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Review your contracts to decide if the reverse charge will apply and advise your customers
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Ask you customer to confirm whether they are an end user or intermediary supply
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Make sure your accounting system can account for the reverse charge
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Consider whether the change will have an impact on your cash-flow
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Update your invoice to reflect the reverse charge
Details of which construction services the reverse charge applies to can be found here
We are here to help you make this transition easier. Just give Helen a call on 07730621977.
Budget News 2021

Chancellor Rishi Sunak has unveiled the contents of his Budget in the House of Commons. Here is a summary of the main points:
Furlough to be extended until the end of September
Government to continue paying 80% of employees' wages for hours they cannot work
Employers to be asked to contribute 10% in July and 20% in August and September
Support for the self-employed also to be extended until September
600,000 more self-employed people will be eligible for help as access to grants is widened
£20 weekly uplift in Universal Credit worth £1,000 a year to be extended for another six months
Working Tax Credit claimants will get £500 one-off payment
Minimum wage to increase to £8.91 an hour from April