HMRC has published a policy paper outlining the forthcoming changes to the penalties for late payment and interest harmonisation for taxpayers. The government intends to reform sanctions for late submission and late payments to make them 'fairer and more consistent across taxes'. Initially the changes will apply to VAT and Income Tax Self Assessment (ITSA). … Continue reading HMRC outlines changes to late payment penalty regime
After three false starts the VAT reverse charge will now come into effect on 1st March 2021. The reverse charge represents part of a government clampdown on VAT fraud. Large amounts of VAT are lost through 'missing trader' fraud. As part of this type of fraud, VAT is charged by a supplier, who then disappears,… Continue reading VAT reverse charge for construction services
A faster way to recover VAT on goods imported to the UK. These changes will affect your business from 1 January 2021 if you import goods into the UK. Import VAT is now charged on all goods entering the UK (including goods from EU countries). Previously import VAT was charged on non-EU imports only. You… Continue reading Postponed VAT Accounting
HMRC has issued some guidance to taxpayers that deferred their VAT payments between 20 March and 30 June 2020 and still have payments to make. HMRC is advising taxpayers who deferred their VAT payments to: pay the deferred VAT in full on or before 31 March 2021or opt in to the VAT deferral new payment… Continue reading VAT deferral
On 5 June 2020, HMRC announced a five-month delay to the introduction of the domestic VAT reverse charge for construction services, due to the impact of the COVID-19 pandemic on the sector. The change will now apply from 1 March 2021 and will overhaul the way VAT is payable on building and construction invoices as… Continue reading COVID-19: delay to VAT reverse charge on construction services
If coronavirus means you can't pay a tax bill on time, the government is offering Time To Pay (TTP) as a way of easing cash flow problems. It is important to appreciate that TTP cannot be used to reduce tax liability. TTP is just that - it buys time, giving you breathing space and spreading… Continue reading Time To Pay Tax
Just 11 days ago I blogged about the new rules for VAT and construction services….. Well, HMRC have actually listened to businesses and construction industry representatives who have been saying that the changes have come in too soon and businesses just aren’t ready - on top of Making Tax Digital and impending (or not?!) Brexit,… Continue reading VAT Changes in Construction – POSTPONED!
If you are a VAT registered CIS (Construction Industry Scheme) contractor or subcontractor, the way you deal with VAT is changing from 1 October 2019. Under the new rules, you will not charge VAT to your customers, therefore will not receive payment of the VAT, and will not pay the VAT to HMRC. It will… Continue reading VAT – The New Reverse Charge on Building and Construction
From 1 October 2019 a new VAT reverse charge comes into effect for building and construction services, where payments are required to be reported under the Construction Industry Scheme. Broadly it means that when a business receives a supply of building and construction services for onward sale, the recipient of the services (the contractor) accounts… Continue reading VAT Domestic Reverse Charge for Building and Construction Services
From April 2019 VAT registered businesses and organisations with taxable turnover above the VAT threshold of £85,000 are required to maintain their accounting records digitally in a software product or spreadsheet and also submit their VAT returns to HMRC using compatible software. Here are a few programmes that are compatible with MTD for VAT: XeroSage… Continue reading MTD for VAT – Are you ready?