HMRC’s latest agent update provides notice of a number of changes affecting employers and their agents. ICAEW’s Tax Faculty highlights some key items.

The new penalty regime for the late payment of income tax and VAT is “overly complex” and needs to be simplified, according to the Tax Faculty’s response to the Finance Bill. It’s also recommending the deferral of changes to the construction industry scheme.

26 January 2021: After several delays HMRC’s VAT domestic reverse charge for construction services is due to come into force on 1 March 2021. ICAEW’s Tax Faculty provides a reminder of the changes.

8 January 2021: HMRC needs to publish draft regulations and guidance detailing forthcoming changes to the construction industry scheme or consider pushing back implementation until 2022, according to ICAEW.

13 November: HMRC has published draft Finance Bill legislation to tighten up the construction industry scheme (CIS).

27 August: HMRC’s plans to tackle abuse of the construction industry scheme (CIS) would create a burden disproportionate to the relatively small amount of revenue at stake and affect many compliant businesses, ICAEW has warned.

The construction sector is again under the spotlight. Tim Palmer and Mark Rubinson of Arram Berlyn Gardner review in depth the forthcoming tax changes. They look at the basics of the construction industry scheme, how the changes affect contractors and subcontractors, and illustrate their points using three examples.

HMRC internal manual providing guidance on how payments are taxed under CIS, covering contractors, subcontractors, deductions, compliance, monthly returns and the end of year process.

Guidance for contractors and subcontractors explaining the terms used under CIS, how payments are made to subcontractors, what HMRC requires from contractors, and guidance relating to businesses not resident in the UK.

Official guidance covering subcontractors and contractors responsibilities, returns, payments, businesses outside of the UK, deductions for limited companies, multiple contractor status and managing agents.