NEW VAT RULES FOR BUILDING TRADE IN 2019
Under new rules due to come in on 1 October 2019 builders, sub- contractors and other trades associated with the construction industry will have to start using a new method of accounting for VAT. The measure is designed to combat VAT fraud in the construction sector labour supply chain which HMRC argue presents a significant tax loss. HMRC has now published draft legislation to introduce the Reverse Charge for Construction Services. Under the proposed new rules, supplies of standard or reduced- rated building services between VAT-registered businesses in the supply chain will not be invoiced in the normal way. Under the reverse charge a main contractor would account for the VAT on the services of any sub-contractor and the supplier does not invoice for VAT. The customer (main contractor) would then account for VAT on the net value of the supplier’s invoice and at the same time deducts that VAT – leaving a nil net tax position. This is intended to ensure that VAT is correctly accounted for on supplies by sub-contractors.
CONSTRUCTION WORK AFFECTED
are likely to be affected by these changes and we can work with you to ensure you are ready for the new system.
NOTIFY HMRC OF EBT AND SIMILAR LOANS BY 30 SEPTEMBER
WHAT IS THE 2019 LOAN CHARGE?
This is a tax charge on any outstanding loans that exist as a result of a disguised remuneration tax avoidance scheme. It applies to any loans that were taken out under a disguised remuneration scheme since 6 April1999.
The most common schemes were Employee Funded Retirement Benefit Schemes (EFRBS) and Employee Benefit Trusts (EBT).
When used for tax avoidance, both involved the diversion of employment income to a trust; the trust would then ‘loan’ the employment income to the individual (meaning no PAYE/National Insurance tax was paid) who sought to benefit from
It is the responsibility of the employer/company to pay the 2019 Loan Charge under PAYE legislation. The employer is then expected to pass this cost on to the individual. Whilst the initial liability falls to the employer, it can be passed to the individual beneficiary of the scheme by HMRC if unpaid. By contacting HMRC to settle your tax affairs now, you can obtain certainty of what you owe and if required, arrange a payment plan.
SHORT-TERM BUSINESS VISITORS
- Extending the UK workday rule from 30 to 60 days.
- Introducing a new tax exemption for short-term visitors from overseas branches.
ADVISORY FUEL RATE FOR COMPANY CARS
- 1/07: Corporation tax for year to 30/9/17 (unless pay quarterly)
- 5/07: Deadline for agents and tenants to submit returns of rent paid to non-resident landlords and tax deducted for 2017/18
- 6/07: Deadline for forms P11D and P11D(b) for 2017/18 tax year
- 19/07: PAYE & NIC deductions, and CIS return and tax, for month to 5/7/18 (due 22/07 if you pay electronically)
- 31/7: 50% payment on account of 2018/19 tax
- 1/08: Corporation tax for year to 31/10/17 (unless pay quarterly)
- 19/08: PAYE & NIC deductions, and CIS return and tax, for month to 5/7/18 (due 22/07 if you pay electronically)