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VAT Annual Accounting
With the Annual Accounting Scheme you complete one VAT return per year instead of each quarter. The advantages of using the scheme are that...
Only one VAT return is required per year and you have two months in which to complete it.
Cash flow is helped by regular monthly payments.
You can choose the VAT return year that you want.
Should I register for VAT?
In broad terms, and subject to certain exceptions, a business will be required to register to charge and pay VAT once annual sales reach a pre-set annual threshold, which is currently £85,000.
Domestic reverse VAT charge for building and construction services
The domestic reverse VAT charge for building and construction services was due to come into effect from 1 October 2019. However, in early September it was announced that the start date had been put back one year. As a result, the charge will now apply from 1 October 2020.
VAT Reverse Charge for Construction Services
The VAT domestic reverse charge for building and construction services comes into effect from 1 October 2019. The reverse charge represents part of a government clamp-down on VAT fraud.
VAT reverse charge in the construction industry
Autumn Budget 2018 announced a new measure, designed to counter fraud in the construction industry, which has seen gangs of criminal traders artificially extending the chain of supply of labour services, then failing to account for all the output VAT due to HMRC by collecting the VAT on the supplies (sales) and then going "missing" before passing the VAT on to HMRC.
Making Tax Digital
Many businesses need to start preparing for the major changes that the government’s Making Tax Digital project will impose from April 2019. Preparation for these changes will take time, additional support, and for some businesses the implementation of new accounting software and processes. Therefore it is important to involve your accountants now as they can help facilitate, support, recommend and implement changes to make the transition as smooth as possible.