Our lead article looks at an important change for the construction industry: the introduction of the VAT domestic reverse charge. The charge takes effect from 1 October 2019, and will mean significant changes in invoicing and VAT return procedures for those involved.
The new rules apply to VAT-registered businesses where payments fall to be reported through the Construction Industry Scheme. Essentially, they put the onus on the recipient of construction services to account for VAT, rather than the business supplying those services. The measure is intended to reduce fraud within a high-risk sector. From a business perspective, there are considerable knock-on consequences, including reduction in cash flow where output tax is no longer charged. It is therefore important to take steps to prepare now.
Our other front-page article reports on recent changes to the Making Tax Digital for VAT (MDV) Notice. MDV affects businesses with taxable turnover over the VAT registration threshold of £85,000. It involves keeping digital records and the submission of VAT returns using compatible software. The new rules apply for VAT return periods starting on or after 1 April 2019. Updates to the VAT Notice outline some record keeping easements.
As the yearly cycle of self assessment tax returns rolls round once again, we include a one-page feature on recent developments to be aware of in this area.
In our other articles, we consider:
- holiday pay issues for employers
- better management for the farming business
- workplace diversity
- whether deferring state pension would work to your advantage.
We are sure you will find the newsletter an interesting read. Please contact us if you have any questions regarding any of the articles we have included in our newsletter or if you would like further information on a topic we haven't covered. Your views are always important to us and we welcome your feedback.
VAT: building and construction
MTD for VAT update
Better business management: the farm
Holiday pay: it comes with the job
Tax return special
Your state pension