Reverse Charge VAT is coming - is your business ready?
The new rules comes into place on 1st October 2020 - read on to ensure your business is ready for the changes.
Are you using construction-specific accounting software?
For businesses using generic accounts software, the Reverse Charge VAT changes could cause significant administrative burdens, causing disruption to your business.
Our Evolution range of software is Reverse Charge VAT ready
Make the whole process of accounting for Reverse Charge VAT easy with the Evolution range of software, which is ready for the upcoming changes. Book a free on-site demonstration today, and we will show you how easy it is to comply with the new Reverse Charge VAT rules using our award-winning software.
What is changing?
With the dust barely settled on Making Tax Digital it's time for businesses in the construction industry to turn their attention to HMRC's next big change, Reverse Charge VAT. Most in the industry won't be surprised by these changes, with VAT fraud a common occurrence in the construction industry.
With the new rules in place, certain customers/contractors will have to account to HMRC for VAT in respect of purchases instead of the supplier - hence the term Reverse Charge.
At present, subcontractors charge VAT on supplies to main contractors, which is then paid to HMRC. An equivalent VAT deduction can also be claimed by the main contractor subject to the normal rules of VAT recovery.
Download our FREE guide for more information and details of how your business should be preparing for the change.
How this will affect construction businesses
Some construction businesses could see significant impact on their cash flow, with one company already out of business blaming the changes to VAT. HMRC expect that some 150,000 businesses will be affected.
Despite the introduction date 1st October 2020 looming, there is still very little awareness of these changes. With this in mind, we have put together a FREE 10-page guide with everything you need to know to ensure your business complies.
What's in our free guide?
Download our free guide today and you'll find out:
- What is Reverse Charge VAT?
- How this could affect you
- What you need to do now
- What supplies will Reverse Charge VAT cover?
- Completing VAT return entries
- How can our software help?