There are new tax rules, which will be effective from 2019. No Images? Click here 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. A domestic reverse charge means that a contractor receiving a supply of specified construction services must account for the output VAT due, rather than the sub-contractor who supplied the services. The contractor also deducts the VAT due on the supply as input VAT, subject to normal VAT rules, meaning no net tax is usually payable to HMRC. The reverse charge thus removes the scope to evade any VAT owing to HMRC by the sub-contractor. Changes to SRA Accounts Rules. Historically the Solicitors Regulation Authority (SRA) Accounts Rules have comprised of a large number of very specific and prescriptive rules governing how law firms deal with client money. All firms, large or small, who hold client money have had to comply with these rules with no real scope to adapt them to suit their individual practice. This will change from 25 November 2019. New tax rules for individuals working via their own companies for a medium or large business (‘Off-Payroll working in the private sector’) From 6 April 2020, new tax rules are proposed for individuals who provide their personal services via an ‘intermediary’ to a medium or large business. An intermediary may be another individual, a partnership, an unincorporated association or a company. The most common structure is a worker providing their services via their own company (PSC) which is the term used to summarise the rules which will apply to all intermediaries. Ward Williams Charity Fundraising Night - 5th September 7pm Join us for a fabulous evening of networking with local businesses and help raise money for Anna Kennedy Online. Have you read our latest newsletters? To subscribe to any of our specific newsletters please visit our website. |