VAT Reverse Charge - effective 1st March.

The Domestic Reverse Charge VAT scheme for those in the Construction Industry Scheme (CIS) comes into effect on 1st March 2021.

The new rules represent a significant change to the way that VAT is collected for those registered in the Construction Industry Scheme - the customer will now pay any VAT due direct to HMRC rather than to the supplier. The customer will then reclaim any VAT due using the usual VAT recovery rules.

Be aware that these changes could affect your cashflow and you might need to source additional business finance. You will also need to ensure that your accounting systems and software are ready for the forthcoming changes. Read more

New VAT deferral payment scheme opens on 23rd February 2021

If you deferred your VAT payments due between 20th March and 30th June 2020 and still have outstanding payments to make, you can join the new VAT deferral payment scheme.

The online service opens on 23rd February and closes on 21st June 2021. The scheme lets you pay the outstanding VAT in equal instalments, interest free. Read more

Remember to download your import VAT statements for your VAT return

If you are accounting for import VAT under the new Postponed VAT Accounting rules you will need to download your postponed import VAT statements.

You will only be able to access these postponed import VAT statements for six months, so do remember to download them for your records. These statements will be required as supporting documentation for the declarations made on your VAT return. It is important these are retained for the same length of time as all other company records. Read more