As of today, UK based businesses that have a taxable turnover above the VAT threshold of £85,000 will be required to switch to the new digital tax service to report earnings and calculate VAT owed. Continue reading
Category Archives: VAT
HMRC reveals MTD registration takes seven working days
HM Revenue & Customs (HMRC) has warned that registration for Making Tax Digital (MTD) for VAT will take up to seven days to complete and will not be a real-time service. Continue reading
Thousands yet to register for EORI number, figures show
Just 17 per cent of businesses who trade with the EU have registered for an Economic Operator and Registration Identification (EORI) number, new figures have revealed. Continue reading
The VAT reverse charge and how it will affect the construction industry
This year could be the most challenging year yet for the construction industry, as HM Revenue and Customs (HMRC) has announced that the VAT reverse charge will commence 1 October 2019.
The Government announced in the 2017 autumn budget statement that they intended to implement a VAT reverse charge scheme.
Further to this, in November 2018, the draft order for the “VAT Reverse Charge for Construction Services” was issued under section 55A of the VAT Act 1994.
HMRC has now finalised and published the technicalities of the scheme, and the new regime is set to go live on 1 October 2019.
The new scheme will mean all VAT being paid between construction firms e.g. contractor to subcontractor and on subcontractor to subcontractor, will be reverse charged. This means that the VAT will not be paid to the subcontractor, it will be paid directly to HMRC.
This will apply to all payments made which operate under the Construction Industry Scheme (CIS). For example, a contractor who owes a subcontractor £100 plus £20 VAT will only pay the subcontractor £100 and will pay the VAT straight to HMRC.
There is a growing concern within industry bodies that the construction industry is neither ready for the logistical requirements of this change, nor the practical commercial consequences.
As a result of these changes, it is likely to impact many companies cash flow and IT accounting systems. Therefore construction firms need to start planning now, to ensure you will be ready and able to adjust when the time comes, get in touch with us today.
Trading after Brexit: What is an EORI number and why do I need one?
The Government has written to more than 145,000 VAT-registered businesses across the UK, explaining the potential changes to customs, excise and VAT in the event that the UK leaves the EU without a deal. Continue reading
HMRC shifting the “tax burden” onto UK consumers
Accounting experts have accused HMRC of shifting the “tax burden” onto UK consumers after finding that 21 per cent of their total income is accounted for by VAT. Continue reading
HMRC crackdown on online tax evasion in the UK
The Joint and Several Liability (JSL) notices, were introduced in 2016 to protect British businesses from being undercut by overseas sellers committing VAT evasion. Continue reading
Amount of VAT outstanding from UK businesses hits five-year high
HM Revenue & Customs (HMRC) is owed a record £3 billion in outstanding VAT payments by UK businesses, it has emerged. Continue reading
Making Tax Digital for VAT pilot launched by HMRC
HM Revenue & Customs (HMRC) has this week opened a pilot scheme for Making Tax Digital (MTD) for VAT – the first phase of the Government’s digital tax reporting overhaul. Continue reading