Construction VAT - Revision history

Cantor Atkin at 16:22, 28 April 2021

2021-04-28T16:22:20Z

← Older revision		Revision as of 16:22, 28 April 2021
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	From March 2021, a domestic VAT reverse charge came into effect to tackle fraud in the construction industry. A reverse charge enables a customer to charge themselves VAT rather than the supplier charging it. This removes any opportunity for the supplier not to pay HMRC (missing trader fraud). The reverse charge applies to businesses that supply services to another business that will then sell on that service, but not those that supply services to consumers.		From March 2021, a domestic VAT reverse charge came into effect to tackle fraud in the construction industry. A reverse charge enables a customer to charge themselves VAT rather than the supplier charging it. This removes any opportunity for the supplier not to pay HMRC (missing trader fraud). The reverse charge applies to businesses that supply services to another business that will then sell on that service, but not those that supply services to consumers.

−	For more information see: VAT reverse charge.	+	For more information see: [https://www.designingbuildings.co.uk/wiki/VAT_reverse_charge VAT reverse charge].

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−	~~This article was created by --[[User:Martinc\|Martincantor]] 11:28, 6 August 2012 (BST)~~
−
	= Related articles on Designing Buildings Wiki =		= Related articles on Designing Buildings Wiki =

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	* HMRC: [http://www.hmrc.gov.uk/vat/sectors/builders/construction.htm#2 Work on buildings other than ordinary homes that may be reduced-rated or zero-rated].		* HMRC: [http://www.hmrc.gov.uk/vat/sectors/builders/construction.htm#2 Work on buildings other than ordinary homes that may be reduced-rated or zero-rated].
	* HMRC: [http://www.hmrc.gov.uk/vat/sectors/builders/construction.htm#1 Work on ordinary homes that may be reduced-rated or zero-rated].		* HMRC: [http://www.hmrc.gov.uk/vat/sectors/builders/construction.htm#1 Work on ordinary homes that may be reduced-rated or zero-rated].
		+
		+	--[[User:Cantor Atkin\|Cantor Atkin]] 17:22, 28 Apr 2021 (BST)

	[[Category:DCN_Policy]] [[Category:Taxation]] [[Category:Contracts_/_payment]] [[Category:Cost_/_business_planning]]		[[Category:DCN_Policy]] [[Category:Taxation]] [[Category:Contracts_/_payment]] [[Category:Cost_/_business_planning]]

Designing Buildings at 12:04, 19 March 2021

2021-03-19T12:04:18Z

← Older revision		Revision as of 12:04, 19 March 2021
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	Supplies of certain goods may be 'exempt' or 'zero-rated'. In both of these categories VAT is not added to the value of the supply but there is differing treatment with regard to input tax incurred with regard to making that supply.		Supplies of certain goods may be 'exempt' or 'zero-rated'. In both of these categories VAT is not added to the value of the supply but there is differing treatment with regard to input tax incurred with regard to making that supply.

−	In the design and construction sectors most supplies are 'standard-rated' and therefore VAT is added to the value of supplies at the prevailing rate of VAT. But certain types of work can sometimes be charged at a reduced rate ~~of 5 per cent~~, or at the zero rate (see the table below).	+	In the design and construction sectors most supplies are 'standard-rated' and therefore VAT is added to the value of supplies at the prevailing rate of VAT. But certain types of work can sometimes be charged at a reduced rate, or at the zero rate (see the table below).

	For a party wishing to undertake development of any sort it is vital that, in calculating the budget for the job, VAT is correctly accounted for:		For a party wishing to undertake development of any sort it is vital that, in calculating the budget for the job, VAT is correctly accounted for:
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	= Reverse charge =		= Reverse charge =

−	From March 2021, a domestic VAT reverse charge ~~will come~~ into effect to tackle fraud in the construction industry. A reverse charge enables a customer to charge themselves VAT rather than the supplier charging it. This removes any opportunity for the supplier not to pay HMRC (missing trader fraud). The reverse charge ~~will apply~~ to businesses that supply services to another business that will then sell on that service, but not those that supply services to consumers.	+	From March 2021, a domestic VAT reverse charge came into effect to tackle fraud in the construction industry. A reverse charge enables a customer to charge themselves VAT rather than the supplier charging it. This removes any opportunity for the supplier not to pay HMRC (missing trader fraud). The reverse charge applies to businesses that supply services to another business that will then sell on that service, but not those that supply services to consumers.

	For more information see: VAT reverse charge.		For more information see: VAT reverse charge.

Editor at 12:34, 15 February 2021

2021-02-15T12:34:41Z

← Older revision		Revision as of 12:34, 15 February 2021
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	* Capital gains tax.		* Capital gains tax.
	* Construction invoice fraud.		* Construction invoice fraud.
		+	* December 2020 GDP figures show construction vulnerable.
	* Financial year.		* Financial year.
	* Hourly rate.		* Hourly rate.

Editor at 10:52, 8 September 2020

2020-09-08T10:52:58Z

← Older revision		Revision as of 10:52, 8 September 2020
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	* HMRC: [http://www.hmrc.gov.uk/vat/sectors/builders/construction.htm#1 Work on ordinary homes that may be reduced-rated or zero-rated].		* HMRC: [http://www.hmrc.gov.uk/vat/sectors/builders/construction.htm#1 Work on ordinary homes that may be reduced-rated or zero-rated].

−	[[Category:Taxation]] [[Category:Contracts_/_payment]] [[Category:Cost_/_business_planning]]	+	[[Category:DCN_Policy]] [[Category:Taxation]] [[Category:Contracts_/_payment]] [[Category:Cost_/_business_planning]]

81.105.55.130 at 09:43, 8 September 2020

2020-09-08T09:43:13Z

← Older revision		Revision as of 09:43, 8 September 2020
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	= Reverse charge =		= Reverse charge =

−	From ~~October 2019~~, a domestic VAT reverse charge will come into effect to tackle fraud in the construction industry. A reverse charge enables a customer to charge themselves VAT rather than the supplier charging it. This removes any opportunity for the supplier not to pay HMRC (missing trader fraud). The reverse charge will apply to businesses that supply services to another business that will then sell on that service, but not those that supply services to consumers.	+	From March 2021, a domestic VAT reverse charge will come into effect to tackle fraud in the construction industry. A reverse charge enables a customer to charge themselves VAT rather than the supplier charging it. This removes any opportunity for the supplier not to pay HMRC (missing trader fraud). The reverse charge will apply to businesses that supply services to another business that will then sell on that service, but not those that supply services to consumers.

	For more information see: VAT reverse charge.		For more information see: VAT reverse charge.

Designing Buildings at 12:30, 15 July 2019

2019-07-15T12:30:47Z

← Older revision		Revision as of 12:30, 15 July 2019
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		+	= Introduction =
		+
	Value Added Tax (VAT) is a tax added to the cost of certain goods and services. It is only accountable where the party raising an invoice is VAT registered. It is necessary to register if VAT-able turnover exceeds a minimum threshold in any 12-month period.		Value Added Tax (VAT) is a tax added to the cost of certain goods and services. It is only accountable where the party raising an invoice is VAT registered. It is necessary to register if VAT-able turnover exceeds a minimum threshold in any 12-month period.

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	* Converting a loft.		* Converting a loft.
	* Carrying out repairs or renovations.		* Carrying out repairs or renovations.
		+
		+	= Reverse charge =
		+
		+	From October 2019, a domestic VAT reverse charge will come into effect to tackle fraud in the construction industry. A reverse charge enables a customer to charge themselves VAT rather than the supplier charging it. This removes any opportunity for the supplier not to pay HMRC (missing trader fraud). The reverse charge will apply to businesses that supply services to another business that will then sell on that service, but not those that supply services to consumers.
		+
		+	For more information see: VAT reverse charge.

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Editor at 18:16, 17 June 2019

2019-06-17T18:16:04Z

← Older revision		Revision as of 18:16, 17 June 2019
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	* PAYE.		* PAYE.
	* Stamp duty.		* Stamp duty.
		+	* Tax.
	* Turnover.		* Turnover.
	* VAT - Option to tax (or to elect to waive exemption from VAT).		* VAT - Option to tax (or to elect to waive exemption from VAT).

Editor at 16:47, 20 May 2019

2019-05-20T16:47:07Z

← Older revision		Revision as of 16:47, 20 May 2019
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	This article was created by --[[User:Martinc\|Martincantor]] 11:28, 6 August 2012 (BST)		This article was created by --[[User:Martinc\|Martincantor]] 11:28, 6 August 2012 (BST)

−	~~= Find out more =~~	+	= Related articles on Designing Buildings Wiki =
−		+
−	=== Related articles on Designing Buildings Wiki ===	+

	* Business rates.		* Business rates.
	* Capital gains tax.		* Capital gains tax.
	* Construction invoice fraud.		* Construction invoice fraud.
		+	* Financial year.
	* Hourly rate.		* Hourly rate.
	* PAYE.		* PAYE.
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	* VAT reverse charge.		* VAT reverse charge.

−	=== External references ===	+	= External references =

	* HMRC: [http://www.hmrc.gov.uk/vat/sectors/builders/construction.htm Building and construction work and VAT].		* HMRC: [http://www.hmrc.gov.uk/vat/sectors/builders/construction.htm Building and construction work and VAT].

Editor at 12:40, 9 July 2018

2018-07-09T12:40:30Z

← Older revision		Revision as of 12:40, 9 July 2018
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	* VAT - Protected Buildings.		* VAT - Protected Buildings.
	* VAT refunds on self-build homes.		* VAT refunds on self-build homes.
		+	* VAT reverse charge.

	=== External references ===		=== External references ===

Editor at 18:25, 18 June 2018

2018-06-18T18:25:45Z

← Older revision		Revision as of 18:25, 18 June 2018
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	* Capital gains tax.		* Capital gains tax.
	* Construction invoice fraud.		* Construction invoice fraud.
		+	* Hourly rate.
	* PAYE.		* PAYE.
	* Stamp duty.		* Stamp duty.