In the next 12 months there are not one, but two, major changes for construction.
- The new off-payroll working rules come into force for medium and large companies but the changes which result will impact on people working through their own limited companies, so some small companies will feel the heat too. These new rules come into force on 1 April 2020.
- Reverse charge VAT starts from 1 October 2020 and put in the simplest terms, will mean that no VAT registered construction business working for another VAT registered construction business will be paid VAT. (Of course it is more complicated than that!)
BUT you must know what the dull and dusty terms ‘off-payroll’ and ‘reverse charge’ mean or your business will be vulnerable to running up huge tax bills.
All construction businesses would be well advised to learn about them both. FIS members can read the update from JTC newsline November 2019.