Author: David Richardson

UPDATE

As of 6th September 2019, the introduction of this tax has been delayed by HMRC to 1st October 2020. The reason for the delay is that industry is not yet ready to implement the changes and the 12 months delay will avoid coinciding with Brexit.

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Are you aware of the changes in VAT rules if you are involved in Construction?
Construction Industry Reverse VAT charges

If you are involved in the construction industry it is important that you are aware of the VAT changes that come into effect 1st October 2019.
This is a significant change to the way you account for Output VAT on contract work.

It applies in the following circumstances:
• The supply consists of Construction services and materials
• It is standard or reduce rate VAT
• It is between a UK VAT registered supplier and UK VAT registered customer
• Both parties are registered for CIS
• The customer intends to make an ongoing supply of construction services
• The supplier and customer are not connected.

What do you Need to Do?
With contracts starting 1st October 2019 you will need to check whether they fall within the reverse charge rules and when you will receive payment.
If payment is received before the 31st December 2019 then you account for VAT as normal for receipts after this date reverse charge rules will apply.

What does this mean in practice?
Where the rules are met instead of charging output VAT your invoice will say
‘Reverse charge applies at the VAT rate of either 20% or 5% if reduced rate’

Does this affect my VAT scheme?
Yes, it may do contact us for further advice.

Who pays the VAT?
Where you and the contractor are VAT registered then the contractor pays the VAT on your behalf. Please bear in mind that this may influence your cashflow as you will no longer be receiving the gross invoice only the net amount. You may wish to consider switching to monthly VAT returns. Please ask us for advice.

There are detailed rules on what type of work applies and circumstances of continuous supply so if you require any assistance on this please do not hesitate to contact us.

Karen Richardson

 

The IR35 rules are changing and if they affect you then our tax advisors are perfectly placed to help you with the transition.

The most important step is to establish if your work is subject to IR35 rules. So, do you work for yourself but only have one client and you operate as a limited company doing consulting work then it is almost certainly applying to you.

To find out more about IR35

If this is the case and you want to know more about it, we have published a fact sheet which outlines the stages and implementation which is necessary.

Once you have had the opportunity to look through these then why not contact us so that we can guide you through the implementation to compliance.

Download the IR35 factsheets

Make an Appointment

Are you looking for a career in accountancy or maybe looking for a new challenge to expand your accountancy skills. Then have a look at the type of roles we are looking for at Careers at Mcginty Demack

So, if you are looking to join McGinty Demacks’ apprenticeship programme, or if you are already experienced in the accountancy field then why not apply.  Complete the application form on our website.

To help with connecting Quickbooks and Online Banking McGinty Demack have produced a fact sheet.

Quickbooks will soon be updating the way they link to your bank. This is to improve the connection and help provide a better service.

To help keep you informed of this change please see our FAQ sheet below.  If you have any questions please do not hesitate to contact us.

Open Banking FAQ

Wigan Expo

It’s was an exciting start to the day, Crazy when you arrive with a monitor to run your prom presentation and realise you forgot your keyboard and mouse. But like all good accountants, we sorted it. Our branded water giveaway went down well right from the start and we got lots of interest in our making tax digital pitch.

The staff were brilliant in manning the stand and collecting lots of good enquires which we will be sure to try to convert into new clients.

There was a very good seminar – You’re hired. I wonder what inspired the title. Speakers sharing their experience in engaging the next generation of employees and more importantly keeping them.

The facilities at The Edge in the regenerated Wigan Pier area were superb.

We look forward to working in and with the Wigan Business Community. Contact us whether you have seen us at the Wigan Expo or not and we will help you with your accounting and tax matters.