On Thursday 11th February our tax experts, Annette Stone and Sean Bolter discussed the upcoming introduction of the HM Revenue and Customs VAT reverse charge on certain building and construction services, which is being introduced from 1st March 2021.
This measure will mean that customers will be liable to account for the VAT in respect of those purchases, rather than the supplier. We anticipate that the reverse charge will impact small and micro-businesses with a loss of cash flow where VAT will no longer be charged. Also, any businesses that are under the Flat Rate Scheme (FRS) will likely be affected by an increase in VAT costs.
The main points which were covered are;
• What is the reverse charge?
• Who is affected by the reverse charge?
• Who is the end-user?
• A brief legislative overview of the VAT rates applying to the construction industry
• Practical aspects in regards to processing your VAT returns
• What this means to your cashflow
ASK TW - we are here to answer your questions
If you have any questions regarding the topics raised please email firstname.lastname@example.org
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