Bray Accountants No Comments

VAT Domestic Reverse Charge for Building and Construction Services

From 1st March 2021 supplies of Building and Construction services must operate under new Reverse Charge Regulations. The rules can be quite complicated so please contact us if you have any concerns or queries on how they will apply to you.

https://www.gov.uk/government/publications/restrictihttps://www.gov.uk/guidance/vat-domestic-reverse-charge-for-building-and-construction-servicesng-finance-cost-relief-for-individual-landlords/restricting-finance-cost-relief-for-individual-landlords

Bray Accountants No Comments

CIS Scheme

The CIS scheme contains many penalties and risks to Contractors. For more information on how the scheme works, click on the link below for HM Revenue Customs guidance but preferably please contact us for a more detailed explanation. Beware of H M Revenue interpretation on self employed status, it is not law and incorrect, there have been many tax cases on this issue in the last couple of years which detail the current law. Also, care must be taken to ensure gross payment status is not lost through late payments of tax.

https://www.gov.uk/topic/business-tax/construction-industry-scheme

Bray Accountants No Comments

Budget Reports and Statements

Main items of interest to the majority of small businesses will be:

  • Personal allowances and national insurance rates, please view the tax data information page above.
  • Employers Employment allowance increased to £4,000 from April 2020.
  • Don’t forget the £1,000 a year in tax-free allowances for property or trading income available since April 2017.
  • The Corporation Tax rate is remaining at 19% until April 2023 with the proposal to increase to 25% for Profits over £250,000, Profits below £50,000 will remain taxed at 19%. A tapered rate will return for Profits between £50,000 and £250,000 to merge the two rates.
  • VAT registration limit to remain at £85,000 until April 2022 and the deregistration limit £83,000.
  • CGT lettings relief for landlords withdrawn from April 2020 together with a reduction in the final period exemption for private residence.
Bray Accountants No Comments

Making Tax Digital

The vast majority of VAT-registered businesses with a taxable turnover above the VAT threshold (£85,000) are now required to follow the Making Tax Digital rules by keeping digital records and using software to submit their VAT returns, the introduction of compulsory Digital Links being delayed until 1st April 2021. Those VAT registered businesses below the VAT threshold will not be required to use the system until 1st April 2022, although they can choose to do so voluntarily.

https://www.gov.uk/government/publications/vat-notice-70022-making-tax-digital-for-vat/vat-notice-70022-making-tax-digital-for-vat