The Chancellor has confirmed that VAT compliance will be considered for obtaining and retaining gross payment status. Cancellation of gross payment status on grounds of fraud will also be expanded.
Features and articles
Technical update explaining how non-construction business owners who become personally involved in construction work undertaken on properties (eg arranging for the work to be done on their business properties, contracting with the builders etc) could inadvertently become subject to obligations under the construction industry scheme (CIS).
This month’s top stories include HMRC’s customer service performance falling short; updated guidance for when taxpayers can rely on HMRC; plus a raft of announcements from Legislation Day on R&D, pensions and more.
ICAEW’s Tax Faculty considers the proposed construction industry scheme (CIS) gross payment status (GPS) VAT compliance test is unlikely to deter organised criminal groups and should be dropped.
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.
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.
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A chapter discussing the ways in which employment status may have to be considered by a business when it incorporates.
Concise chapter providing guidance on partnership taxation for businesses in the construction industry, which are subject to the Construction Industry Scheme ('CIS').
Practical guidance on how the Construction Industry Scheme (CIS) applies to businesses within the UK tax regime.
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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