HMRC are introducing “Reverse Charging of VAT” for the construction industry to address the wide-spread VAT fraud that is carried out by many in the construction industry. In the 2017 UK Government budget there was an announcement on the introduction of the reverse charging of VAT in the construction industry. This will take effect from October 2019 and will be a significant change for the construction industry.
This will come into force in October and will impact on everyone who is liable to pay VAT in the construction industry. The main and most immediate effect will be on the cash flow of anyone that operates in a supply chain as they will no longer have access to the 20% VAT to assist with their cash flow.
CECA Scotland is organising a number of free seminars in Scotland in June, this is an urgent need to raise awareness of this amongst as many contractors as possible, CECA would like to extend this invite out to training group members.
Liz Bridge, the well respected construction industry tax expert, will provide details on how these major changes will impact on members and what action needs to be considered now to prepare for the changes.
The main element of this seminar will be an explanation of Reverse Charge VAT. This will entirely change the way many firms charge and account for VAT. It will have an enormous impact on cash flow and will be required to be fully understood so that the correct planning by companies can be put in place.
A firm will be affected if;
- it has VAT registered subcontractors working for it.
- it works for another contractor rather than for the final user of a building or structure.
- you are VAT registered and CIS registered
You will need to know how the changes will impact upon your company and ensure that the necessary training of staff has taken place. You will need to redesign invoices and (again) upgrade software. Many firms will need to register with HMRC as repayment traders and send in monthly VAT returns.
In addition, June will see the first compulsory tax returns under the new Making Tax Digital regime. Liz will provide some tips and pointers for what to do if your tax return fails. She will outline what she believes to be the long term plan of HMRC –and how Making Tax Digital is just the tip of an iceberg!
This FREE seminar is aimed at Directors, Senior Managers and all those involved in finance and book-keeping.
HOW TO BOOK
Dates:
•4th June Westerwood Hotel, 1 St Andrews Dr, Cumbernauld, G68 0EW (Limited Spaces still available)
•5th June Palm Court Hotel, 81 Seafield Rd, Aberdeen AB15 7YX
•6th June Inverness Caledonian Thistle FC, Tulloch Caledonian Stadium, Inverness IV1 1FB
Time:
Registration at all venues will open at 0830 with the seminar ending with lunch at 1200.
This is the biggest tax change to impact the construction industry since the introduction of CIS. Demand for places at these seminars will be high so please reserve your place(s) quickly by e-mailing glenda@cecascotland.co.uk with your name, designation, e-mail address and which date and venue you wish to attend. Alternatively you can call Glenda on 01786 430007.
