CBI WEIGHS IN ON REVERSE CHARGE VAT FURORE
The Confederation for British Industry (CBI) has thrown its weight behind construction industry calls for a delay to the introduction of reverse charge VAT.
Hardly anyone understands how it works yet and hardly anyone is ready, but almost everyone by now knows that their cashflow is going to be hit.
A coalition of construction associations revealed this morning that they had made a joint submission to chancellor Sajid Javid outlining why he has to postpone the introduction of the new VAT system from 1st October 2019 to April 2020. “We believe reverse charge VAT will have a significant negative economic impact on the industry, substantially increasing the burden on business and restricting cashflow,” they told him. “The timing of these changes could not be worse given they are due to take place just before the UK is expected to leave the EU, quite possibly on ‘no-deal’ terms.”
Now Tom Thackray, CBI infrastructure and energy director, has weighed in to reinforce the message. “A thriving construction sector remains critical to the strength and growth of the UK economy. But at a time when businesses are making best-guess plans for different Brexit scenarios this autumn, a sweeping change to the construction sector's tax system would do harm to companies all over the country,” he said.
“The construction sector includes many difficult-to-reach micro and small businesses, and recent research shows that despite best efforts to communicate the changes, seven out of 10 firms affected are entirely unprepared for the introduction of domestic reverse charge.”
He concluded: “Directly or indirectly, the impact will be felt by construction businesses of every size. Minimising this must be the government’s priority, and HMRC should consider pausing the implementation of domestic reverse charge to address the industry’s significant concerns.”
For more information on the reverse charge on VAT please visit;
FURLOUGH SCHEME EXTENDED TILL MARCH AND SELF-EMPLOYED GRANT BOOSTED AGAIN
The government has announced a five-month extension of the furlough scheme while the self-employed will be eligible for a third grant worth up to £7,500. The original furlough scheme w ...
CHANGES TO THE HMRC EMPLOYMENT STATUS MANUAL WITH REGARDS TO UMBRELLA COMPANIES
It is good to see the HMRC trying to make adjustments to the rules set to protect the workers using Umbrella companies but this just goes to show that they really do not understand how most of the Pay ...
STATUS DETERMINATION STATEMENT: OFF-PAYROLL EXPLAINER FOR APRIL 2021
The off-payroll framework is fast approaching, there are still two of the key requirements of the new IR35 legislation from April 2021 which seem to be shrouded in mystery, the main legislative obliga ...
IR35 - RISK TO CLIENT/BUSINESS
Article from Alexander Wilson LL.B. (Hons.) (Dunelm.), CTAIR35 barrister and CTA - Helping all corporations safely retain independent contractors with strong legal advice"Inside IR35" is NOT ...
HMRC INTERNAL MANUAL EMPLOYMENT STATUS MANUAL
HMRC internal manual Employment Status Manual Published: 7 March 2016 Updated: 10 February 2020 see all updates Agency and temporary workers: the agency contract and the requirement for personal ...
IR35 POLL RESULT – CONTRACTORS WILL DUMP CLIENTS ISSUING PSC BLANKET BANS
IR35 Poll ResultThe ITContractor.com IR35 poll result shows that a vast majority of UK contractors plan to dump their clients if the client issues a blanket ban on contractors who use personal service ...