Brexit is only a few months away, but with no deal on the table yet, there is very little definitive information about the VAT implications for businesses. HMRC has started writing to businesses with limited guidance so watch out for information, especially if you do business with customers or suppliers in EU countries.
Reverse charge on construction services
HMRC has now published draft documentation about the new reverse charge for construction services that will come into effect on 1 October 2019. This new measure is designed to prevent VAT fraud in the construction industry and will apply to you if you’re a VAT registered main contractor or a VAT registered sub-contractor. The new rules will introduce significant changes to VAT accounting, cashflow and other compliance issues for affected businesses.
I’ll be writing about the subject in more over the next few weeks, to explain the changes for those businesses. Keep an eye out for my updates.
Residential management charges
In the meantime, HMRC has issued VAT Information Sheet 07/18 which clarifies the VAT liability residential domestic service charges for freeholders of property following problems with the application of Extra Statutory Concession 3.18. Check out the Info Sheet for further details.
Next month is the centenary of the end of hostilities in World War 1. My great-uncle, Arthur Wolfe, died on 12 March 1915 in northern France, at the young age of 20 years old. Like most of his generation, he had no idea of the horrors of war when he signed up to join the army.
The original “common market”, the predecessor to the EU, began after the end of World War 2, with the hope that it would help prevent future wars in Europe. I hope that we will continue our role as part of a peaceful community of countries on this continent. I’d hate to think that my great-uncle and all of those who gave their lives on both sides of the wars did so in vain.
It’s already a busy autumn and there will be more to come. Don’t forget to contact me firstname.lastname@example.org if you need help on any VAT issue.