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.
Features and articles
Howard Royse provides an update on HMRC’s March 2020 consultation on construction industry scheme abuse. He also goes in detail through ICAEW’s response to the document.
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.
19 June: ICAEW’s Tax Faculty is calling on members to share their views on raising standards in the tax advice market, tackling abuse of tax relief and improving HMRC’s charter.
Bloomsbury Core Accounting and Tax Service
Eligible firms have free access to Bloomsbury Professional's comprehensive online library, comprising more than 60 titles from some of the country's leading tax and accounting subject matter experts. Find out who is eligible and how you can access the Core Accounting and Tax Service.
Practical guidance on how the Construction Industry Scheme (CIS) applies to businesses within the UK tax regime.
Concise chapter providing guidance on partnership taxation for businesses in the construction industry, which are subject to the Construction Industry Scheme ('CIS').
A chapter discussing the ways in which employment status may have to be considered by a business when it incorporates.
Brief chapter on the obligations of the Construction Industry Scheme for traders that commission construction or refurbishment work.
Some resources that we link to may pre-date the latest amendments to the relevant tax regulations. While these links contain useful information, please treat them with appropriate caution.
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.
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