Reverse VAT Talk
The Industry had been calling for the government to scrap the new industry rules, planned to be introduced 1 March 2021. Plans that will change how we account for VAT.
The reverse charge is a way of accounting for VAT, customers receiving construction service must pay the VAT to HMRC instead of the supplier, end customer recovers VAT as normal HMRC rules.
Linda Walker is prepared for changes to the tax regime, we understand what is involved for invoicing customers and VAT returns. We’re in constant communication with the accounts and we’ve having a webinar today to establish whether we will be charging some of our clients VAT as they are not always at the top of the chain.
Originally changes were planned for 1 Oct 2019, then moved to 1 Oct 2020. Due to the economic impact of the pandemic the date was moved again to 1 March 2021. All indications from what we have been reading and hearing in the industry news is that it will happen on 1 March 2021.
“With Jade’s help, I look after the financial aspect of the business, reporting, and managing money matters, purchase ledger, invoices, Tax and VAT. We knew this was coming, we know it might create more admin and paperwork for us, but we adapted to change throughout 2020 and we’ll do it again. We’re still drilling down into some aspects of the detail, but we’ll be ready.” Linda Walker