Your Questions Answered by TaxAssist Accountants
Update: Reverse Charge for CIS
I have seen that the deadline for Reverse Charge for CIS has changed, what do I do now?
The new date for this coming into effect will be on 1st October 2020. This change is where VAT registered subcontractors will no longer charge VAT on certain construction services to another VAT registered business. Instead, the customer will ‘self-account’ for any VAT due – this is known as the Reverse Charge.
The sudden U-turn is unprecedented and comes as a result of the construction industry raising concerns about the lack of awareness and lack of time to implement the relevant changes needed.
HMRC recognises that some businesses will have already made changes to meet the needs of the reverse charge and cannot easily change them. Where genuine errors have occurred, HMRC will take into account the fact that the implementation date has changed.
If you have made changes to your set up or arrangements, please get in touch today and we can help you undo them and assist you with any further adjustments that may be needed. We can also look after your bookkeeping and VAT affairs. Please contact us to arrange a free initial consultation.
Information supplied by Cheryl Hopkins, Chartered Certified Accountant, TaxAssist Accountants. Advice shared in this article is intended to inform rather than advise. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action, as a result of reading this item, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.