Brexit Update: Simplified Guide to Rules of Origin

Brexit Update: Simplified Guide to Rules of Origin

What are Rules of Origin?

Rules of Origin determine the economic nationality of a good under a Free Trade Agreement

(FTA). Businesses need to know about them because the Trade and Cooperation Agreement (TCA) means they can trade with the EU without paying tariffs – but only if their product meets the relevant Rules of Origin.

How do Rules of Origin impact my business?

To export tariff-free into the EU, traders must check their goods meet the Rules of Origin requirements set out in the Trade and Cooperation Agreement and have the right documentation. If your goods do not meet the Rules of Origin, they may face a tariff upon export to the EU.

What action do I need to take?

Watch the new on demand video which summarise Rules of Origin processes for businesses.

Then, if you are a UK exporter and your EU importer wants to claim zero tariffs on your goods, there are 3 key steps to work out whether your goods comply with rules of origin:

  1. Classify your good – every good has a commodity code and a list is available on uk
  2. Understand whether your good meets the applicable rule of origin from the TCA (Chapter 2 as well as Annexes ORIG-1 to ORIG-4 will be most useful). You can also use the export checker tool to find out what rule of origin applies to your exports.
  3. Understand how to demonstrate origin to the customs authorities.

For help in working out whether your goods comply and how to demonstrate this to customs authorities, read the Rules of Origin Guidance on trading with the EU.

You may choose to use a customs agent to help you with Rules of Origin and there is guidance available here on how to find one.

Useful Resources

For any further queries or general business advice you can contact BEIS’ dedicated business support helplines or ask customs and tax related queries and other border related queries on one of our forums. There is specific guidance and training on moving goods into, out of, or through Northern Ireland on gov.uk. You can also use the Brexit Checker tool on gov.uk/transition, which will provide you with a personalised list of the most up to date actions that your business needs to take.

– An updated slide deck on Rules of Origin (RoO) with additional sector-specific examples. (This is correct as of Wednesday 17th February 2021)

FREQUENTLY ASKED QUESTIONS: General Questions on Rules of Origin

 1. Can I export tariff free under the new UK-EU trade deal?

As of 1 January 2021, goods exported to the EU are eligible for zero tariffs if the goods meet the Rules of Origin requirements set out in the Trade and Cooperation Agreement (TCA) and have the right documentation. If not, the goods may be subject to EU tariffs.

The same applies for imports to the UK from the EU.

 2. What are Rules of Origin?

Rules of Origin determine the ‘economic nationality’ of a good. They are a standard part of free trade agreements (FTAs).

Rules of Origin require a qualifying level of manufacturing in the country of export to access zero tariffs. This ensures only goods produced in the countries party to the FTA (the UK or the EU) benefit from zero tariffs.

3. How do I comply with Rules of Origin?

First, traders need to understand whether their good meets the applicable rules. To do this they need to classify the good to find its Harmonized System Code and then consider the relevant rules for that good. Traders can do this using this online tool

Second, traders need to understand how to demonstrate origin to the customs authorities and what paperwork they need to include with the good when exported. Traders can self-declare goods meet the rules by making out a statement on origin. Alternatively, the importer can use importer’s knowledge. Traders should look at the origin procedures in the text of the Agreement.

4. What if I am importing goods into GB and then (re-)exporting them to the EU?

 The UK is no longer part of the EU Customs Union. This means that goods imported into GB cannot move freely between GB and EU Member States or vice versa. To be eligible for zero tariff export to the EU, these goods still need to comply with Rules of Origin. This means there must be some production in the UK. This applies to EU origin goods as well as to goods from the rest of world.

If traders move goods through GB from one EU Member State to another without the goods entering UK customs territory (i.e., without entering free circulation in GB), the goods may not need to meet Rules of Origin. Traders should consider whether they are able to use special customs procedures, such as the Transit Procedure (where the goods are moving through UK customs territory) or Returned Goods Relief procedure (for goods re-exported to the EU).

5. If I import goods from a third country, e.g., China and then re-export them to the EU, can I avoid tariffs?

If a good is exported from China to the UK, it will face a tariff upon import into the UK as it falls outside the scope of the TCA or any other UK Free Trade Agreement.

The TCA provides for tariff-free trade export for goods from the UK to EU that meet the Rules of Origin. So, the goods from China must meet the TCA Rules of Origin in the exporting country, in this case the UK, in order to avoid paying a tariff upon export to the EU.

 6. If a product is manufactured in the UK using EU-sourced materials, does that qualify towards meeting Rules of Origin?

The UK and EU negotiated full bilateral cumulation in the TCA. This means that any EU-originating materials and processing will be treated the same as UK sourced material for the purposes of Rules of Origin (and vice-versa).

To be eligible for cumulation, materials must be EU or UK originating (so not just sourced in the UK/EU but originating there).

And while EU-originating materials can count towards meeting Rules of Origin, importantly, the processing or manufacturing done in the UK must go beyond insufficient processing in order for the goods to attain originating status.

Guidance on rules of origin in the UK-EU TCA, including what Rule of Origin applies to your products, can be found here.  The full list of processes which do not confer origin can be found in Article ORIG.7 Insufficient Production, in the TCA.

7. What counts as insufficient processing?

The full list of processes which do not confer originating status is available in Article ORIG.7 Insufficient Production in the TCA. Completion of one or any combination of the included processes is insufficient to confer originating status.

For example, ‘simple painting and polishing operations’ or ‘peeling, stoning and shelling, of fruits, nuts and vegetables’ are not considered to be significant manufacturing and as such do not confer originating status by themselves.

You should always check the relevant Product Specific Rule of Origin for each product you wish to export. If the Rule for your product indicates an allowed percentage of non-originating materials (NOM), your product must meet this Product Specific Rule AND go beyond insufficient processing.

8.  Will I face a tariff if I send goods to the EU for repair?  

Businesses can apply for Outward Processing Relief which allows a business to pay less customs duty & VAT when goods re-enter the UK after being sent elsewhere for repair or processing.

Both the UK and the EU will be retaining their existing Outward Processing Relief regimes. The use of the procedure is subject to the authorisation of the respective customs authority. Information on the UK’s scheme can be found here.

You can also use inward processing relief to pay less customs duty & VAT when bringing goods into the UK for processing or repair. Information on the UK’s scheme can be found here.

 9.  Is the 6-month easement on duty only for imports?

Yes, the 6-month staged import controls and associated deferral of customs declarations and duties (in effect from 1 Jan 2021) are only for imports into the UK from the EU.

Any duties that are payable are required to be paid after from 1 July 2021.

 10.  For items originating from the EU – what impact does Rules of Origin have for onward trade to NI?

If you are sending EU origin goods from Great Britain to Northern Ireland, you must first determine if the goods are considered ‘at risk’ (of entering the EU). If they are not ‘at risk’ or you can declare the good not ‘at risk’ through the UK Trader Scheme, no tariff will be due.

Traders could consider using customs procedures to mitigate the tariffs due on entry to NI for ‘at risk’ goods. These procedures include the Transit Procedure (where the goods are moving through UK customs territory), Customs Warehousing (where goods are stored in duty suspension in a designated warehouse under customs control) or Returned Goods Relief procedure (for goods re-exported to the EU).

Traders should also consider claiming a waiver of the tariff, subject to state aid de minimis limits. In future, traders could consider claiming a reimbursement of the tariff, if goods could later be shown to have remained in NI/returned to GB. The reimbursement scheme is currently in development.

The new Trader Support Service (TSS) can help you to understand the options available to mitigate the risk of paying any tariffs when moving goods into Northern Ireland from Great Britain but cannot make the decision which option if best for you and your businesses unique business practices.

If your EU goods undergo further production in the UK which goes beyond the list of operations in Article ORIG. 7 “Insufficient Production” then these goods will become UK origin under the TCA, and you can apply zero tariffs if you have the necessary supporting paperwork.

Detailed guidance on moving goods into, out of, or through Northern Ireland is available here.

11.  What if our supply chain cannot trace the precise location of their raw materials because they are sourced from all over the world?

Goods are typically considered to be non-originating unless proven otherwise. However, you need to check the product-specific rules for the product in question – tracing of materials would only be needed if you could not meet a process based rule through the activity you carry out in the UK.

If, for example, you can use a Change of Tariff Subheading (CTSH) rule and the inputs that are used are in a different 6-digit customs classification (subheading) to that of the product, the origin of the inputs is irrelevant as you would have met the rule in your own processing.

As with any Product Specific Rule, the processing or manufacturing done in the UK must go beyond insufficient processing (see Article ORIG.7 Insufficient Production in the TCA).

12. Is the maximum allowed percentage of non-originating materials (MaxNOM) the same for all products under the TCA?

No. You should always check the relevant Product Specific Rule of Origin for each product you wish to export, as there are different rules for different products, including any maximum allowed percentage of non-originating materials (MaxNOM).

If the Rule for your product includes a percentage of MaxNOM, your product must meet this Product Specific Rule AND go beyond insufficient processing.

13.  Do these Rules of Origin also apply to other countries with which the UK has a free trade agreement?

All FTAs will have Rules of Origin, but these are specific to each trade agreement. You can find guidance on the UK’s other Free Trade Agreements here, to understand which Rules of Origin apply to trade with that country.

 FREQUENTLY ASKED QUESTIONS: On demonstrating goods comply with Rules of Origin

 1. Can I use a customs agent to help me with Rules of Origin?

 Yes. There is guidance available on how to find a customs agent:

https://www.gov.uk/guidance/appointsomeonetodealwithcustomsonyourbehalf  

Compliance remains the responsibility of the importer and exporter.

2. What text do I need to use for origin statements?

The statement on origin must be provided on an invoice or on any other document that describes the originating product in sufficient detail to enable the identification of that product.

The statement on origin must take the form of the text found in Annex ORIG-4 of the UK-EU TCA (pg. 482).

In the UK, the Exporter Reference Number will be the Economic Operator Registration and Identification (EORI) number.

If the statement on origin is completed for multiple shipments of identical originating products within the meaning of point (b) of Article ORIG.19(4) [Statement on Origin] of the TCA, indicate the period for which the statement on origin is to apply. That period shall not exceed 12 months. Importations of the product must occur within the period indicated. If a period is not applicable, the field may be left blank.

3.  Do I need a declaration from my supplier?

 If the goods you are exporting incorporate originating materials from a supplier, you may need a declaration from your supplier to meet Rules of Origin requirements.

Until 31 December 2021, exporters may make out statements on origin based on supplier’s declarations even if they do not have all the relevant supplier’s declarations in hand at the time they make the statement on origin. Exporters must be confident that the exported goods meet the Rules of Origin requirements and may be asked to retrospectively provide a supplier’s declaration after this date.

4. What does the ‘supporting documentation’ from suppliers need to look like for proving origin?

If you are exporting goods you may need to get a suppliers’ declaration to prove the origin of materials used in the manufacture process. The declaration must use the exact form of words indicated in the UK-EU TCA (page 479).

Suppliers’ declarations can be made on the invoice for the goods supplied, on a bill of materials, or on any commercial document that fully identifies the goods.  A supplier’s declaration may be made out to cover a single supply or to cover regular supplies made over a period of time (a long-term supplier’s declaration).

A supplier’s declaration is not always required. For information on when a supplier’s declaration is and isn’t required, and for the wording to use, see the guidance here.

5. What evidence is needed to prove ‘importers knowledge’ of origin?

To use ‘importer’s knowledge’ to claim preference (zero tariffs), the importer may need to have information about the product including:

  • the HS code of the product and origin criteria used
  • a brief description of the production process
  • if the origin criterion was based on a specific production process, a specific description of that process
  • if applicable, a description of the originating and non-originating materials used in the production process
  • if the origin criterion was ‘wholly obtained’, the applicable category (such as harvesting, mining, or fishing; and the place of production)
  • if the origin criterion was based on a value method, the value of the product as well as the value of all the non-originating and/or originating materials used in the production
  • if the origin criterion was based on weight, the weight of the product as well as the weight of the relevant non-originating and/or originating materials used in the product
  • if the origin criterion was based on a change in tariff classification, a list of all the non-originating materials including their tariff classification number under the Harmonized System (in 2, 4 or 6-digit format depending on the origin criteria); or
  • the information relating to the compliance with the provision on non-alteration

(if applicable), for example a certificate of non-manipulation from the Customs Authority in the country of transit

Further guidance on importer’s knowledge can be found here.

6. Do I need to include an EORI number or REX registration number on a declaration of origin?

A UK exporter should use their UK EORI number on declarations of origin. If you don’t yet have an EORI number, find out how to get one here.

For consignments of a value above €6000 (currently £5700), an EU exporter must have a Registered Exporter (REX) number and include it on the statement of origin, in addition to their EU EORI code.

7. Where can I go for more information?

For full Rules of Origin guidance on trading with the EU, go to: https://www.gov.uk/government/publications/rulesoforiginforgoodsmovingbetweentheukandeu

New economic report will help Forum assist with green recovery in Scotland

New economic report will help Forum assist with green recovery in Scotland

The CICV Forum (supported by FIS) has published an in-depth report aimed at helping public bodies make decisions on where public funding in construction gives the highest economic returns to help support a green recovery.

The report, carried out by Fraser of Allander Institute at University of Strathclyde, was commissioned by the Forum to improve understanding of how investment in construction activity creates multiplier effects across social, economic, and environmental impact measures. It also aims to support policy makers, clients and investors in understanding the return on investment associated with repair and maintenance activity.

John McKinney, Regional Manager of the NFRC, said: “The report highlights that investment in construction, including repairs and improvements, can play a vital role in a green recovery, and the important role Scotland’s existing buildings have in that recovery.

“We will look to highlight this report to the Scottish Government and funding bodies to assist in maximising the economic and carbon benefits of investment in the built environment.”

The report highlights that the construction sector is an important contributor to the Scottish economy supporting almost £16bn in Scottish GVA and almost 300,000 full-time equivalent jobs across the Scottish economy through both direct and indirect and induced economic activity.

The report also reveals that every million pounds spent on specialised construction activities, which includes repairs and improvements, generates £1.09m GVA return to the Scottish economy and supports 21 full-time equivalent jobs.

VAT rebate research as part of this study, also looked at how such a scheme could stimulate the repair, maintenance and improvement element of construction work. The research found that if VAT is cut from 20% to 5% in the specialised construction sector this could generate between £80m – £400m in Scottish GVA and support between 1,500 – 7,500 full-time equivalent Scottish jobs.

Mairi Spowage, Deputy Director of the Fraser of Allander Institute, said: “the construction sector is a significant contributor to the Scottish economy and will play an important role in Scotland’s green recovery from COVID-19.

Our analysis finds that specialised construction activities, which includes retrofitting and home improvements and repairs, has larger economic multipliers than the rest of the construction sector and the Scottish average across all industries.”

The report was commissioned by the CICV Forum with funding by Construction Scotland Innovation Centre (CSIC) though an i-Con Challenge Innovation Grant aimed at helping the sector to recover from the pandemic.  The project had input from Historic Environment Scotland and a number of private and public organsations provided insight to the study.

A webinar to present and discuss the findings in more detail will take place at 2pm on Wednesday 10 March.  Information on how to join the webinar will be available shortly.

The report can be viewed here.

Lockdown Easing and Workplace COVID‐19 Testing

Lockdown Easing and Workplace COVID‐19 Testing

The Prime Minister has confirmed the Government’s four‐step plan for a ‘cautious’ route out of lockdown in England. The current restrictions will be gradually relaxed, beginning with schools and colleges reopening from 8 March, and four specific tests will need to be met at each stage before further restrictions are lifted. The comprehensive roadmap confirms that individuals should continue to work from home where they can until at least 21 June, which is the fourth step and when social distancing measures will be reviewed.  The Scottish Government is expected to set out its plans for easing restrictions this week, with the Welsh Government due to review its current measures on 12 March and the Government of Northern Ireland on 18 March.

Build UK has published a simple guide to the Government’s workplace testing programme, which enables sites with 50 or more workers to undertake asymptomatic Lateral Flow Device (LFD) testing. The guide explains the testing process and sets out the steps required to set up a testing site. Tests are being provided free of charge until at least 31 March 2021, and companies should read the guide before signing up via the Government’s online portal.

Businesses with fewer than 50 workers are currently not eligible for workplace testing; however, they can access the Community Testing Programme in their local area by using the new postcode checker or visiting their local authority website and searching ‘LFD testing’

Visit the FIS COVID-19 Hub here

Secretary of State Open Letter to Industry on Mass Testing

FIS Writes to Chancellor urging for an Extension to VAT Deferral and Flexibility in Apprentice Funding

FIS Writes to Chancellor urging for an Extension to VAT Deferral and Flexibility in Apprentice Funding

Finishes and Interiors Sector CEO, Iain McIlwee, has written to the chancellor ahead of budget supporting the CLC submission and seeking additional support to manage Reverse Charge VAT implementation and flexibility in Apprenticeship funding.  The full text of the letter is available below.

Dear Chancellor,

I write on behalf of the Finishes and Interiors Sector, which accounts for around £10 billion of UK Construction work and over 200,000 workers.  Our community do the refurbishment, fit-out and finishing work to buildings of all types (homes, hospitals, offices etc), constructing internal walls, ceilings and adding the fixtures – over the lifetime of a building, there is typically upwards of 30 re-fits.  We support the work of the Construction Leadership Council (CLC) and have had input into and support the Budget submission already made by the CLC.

Since the New Year, pressure on our sector has become even more palpable as we adapt to the Reverse Charge VAT introduction, off-payroll working, changes to the CIS and new immigration policies.  I have outlined below two critical areas where Treasury could help us to avoid insolvencies and encourage investment in new jobs.

Extension of the VAT Deferral Scheme

The Domestic Reverse Charge (DRC) creates an immediate working capital impact on many of our members who operate as sub-contractors.  We are already working less productively in the wake of COVID, facing additional costs associated with logistics of Brexit and shortages of materials like timber and steel and are staring in the face of potentially severe labour shortages (which is driving up rates and will necessitate additional investment in training).

Example:

I am a the Financial Director of XX a construction business employing around 70 people through PAYE, CIS and which includes two young trainees. I write to express my concern that the government is pressing ahead with implementation of the Domestic Reverse Charge VAT for construction.  Our turnover is around £5 million and we estimate the cash cost to the business will be around £156,250.

With many contracts stalled, working capital is tight and this kind of dent to our cash position will limit our ability to adapt, scale up and invest as the market recovers.  We had hoped for a delay, but failing that, extending the VAT Deferral Scheme to support construction companies who may be struggling to pay as a result of the DRC would be a potential life safer.  The process already exists with the COVID scheme (giving those that deferred in March to June 2020 even more time), but it is not open to new entrants.  If we allowed construction companies to access deferral to get over the hump of cash flow problems this would undoubtedly limit the worst of the impact.

The Impact of Immigration Policy and English Apprentice Vouchers

The nature of our work and construction procurement practices, means many in our community undertake relatively large projects with relatively short lead times that involve the deployment of large numbers of people with a variety of trade skills that work in controlled sequence.  As a result we have always relied on a flexible workforce (historically through the “cards”, latterly leaning on the labour only sub-contractor model).  This enables firms to manage risk and individuals to optimise worktime by moving between projects and companies.  The make-up of our workforce was, pre-COVID, over 40% EU worker.  As a consequence of changes to the immigration system and the relative high dependence on EU work, our Annual Recruitment Target from the UK labour pool has virtually doubled this year.  For every 5% of migrant workers that do not return post COVID or decide not to settle beyond the summer, the target doubles again. This necessitates a major overhaul of how we recruit and train.

We are working with CITB and engaged through the Construction Leadership Council in optimising the Plan for Jobs, as an organisation we have schemes in place to support unemployed workers into construction (pre-COVID, our BuildBack programme had delivered 440 unemployed people into sustained employment over a c2 year period), we are a Kickstart Gateway and we are working hard with employers and providers to build apprentice provision.  Our Apprenticeship Standard is new (completed in 2019) and we are doing all we can (in a difficult environment for training) to help build demand and provision.  Delivery requires capital investment in materials, tools and space as well as investment in trainers, assessors and materials.  We would urge Treasury to consider ringfencing and relaxing the criteria for trading of English Apprentice Vouchers and, where businesses paying cannot utilise directly, vouchers are not just cascaded to support non-levy payers in the supply chain but, where this is not feasible or practical, redirected to investment in the training centres and resources needed to support the delivery of apprentices.  In this way large businesses will be incentivised to get involved to help drive change, work with providers and develop those vital links between industry and skills provision.  We need this engagement to support businesses and FE colleges in making the investment to run programmes that lead to jobs and to reward progression to employment rather than simply focus on completing courses.

These are vital times for our economy and the construction sector has done all we can to keep building through the pandemic, showing, at times amazing flexibility, inspiring innovation and humbling resilience.  The suggestions above are vital keys to help us to unlock the power of this industry to help build our way to a better future, support the much needed investment in digitisation and net zero and ensure that the UK Construction sector is truly the world leader that we have the potential to be.

Yours faithfully,

Iain

Iain McIlwee
CEO, Finishes and Interiors Sector (FIS)

Find out more about the FIS Three Steps to Rebuilding Construction.

A List of Commonly Asked Questions about Reverse Charge VAT

A List of Commonly Asked Questions about Reverse Charge VAT

With the Domestic Reverse Charge VAT set to be introduced in less than a fortnight, HMRC have produced a list of frequently asked questions.  FIS members are reminded to pay particular attention to use of intermediaries such as agencies and payroll companies to understand the implications of VAT associated with their services and credit options that they may have available to mitigate any impact.

Further information, a range of supporting tools to manage necessary communications up and down the supply chain and some suggestions to help mitigate the impact have been made available in the FIS Reverse Charge Toolkit here

When do I account for the reverse charge?

VAT is due when a VAT invoice is issued, or payment is received, whichever is earlier.  This is known as the tax point.

For invoices issued before 1 March 2021 the normal VAT rules will apply.  For invoices issued on or after 1 March 2021 the reverse charge will apply

For authenticated tax receipts or self-billed invoices the tax point is normally the date the supplier receives payment.

  • before 1 March 2021 and the payment date will be on or before 31 May 2021, use the normal VAT rules
  • before 1 March 2021 and the payment date will be on or after 1 June 2021, use the domestic reverse charge
  • on or after 1 March 2021, you must use the domestic reverse charge

Does the reverse charge apply to work carried out for private customers?

No.  Reverse charge only applies to VAT and CIS registered businesses.  If the services are provided to customers who are not VAT and CIS registered then the normal VAT rules apply.

What about supplies that are only partly of services that should be reverse charged?

Normally if any of the services in a supply are subject to the reverse charge all the other services supplied will also be subject to it.  However if the reverse charge part of the supply is 5% or less of the value of the whole supply then this can be disregarded and the normal VAT rules can be applied.

Is zero rated work excluded from the supply value when the 5% is calculated?

No.  We have tried to avoid making any changes to the zero-rate.  The 5% value refers to a de minimis level of a supply that by itself would be subject to the reverse charge but can be ignored given the overall characteristics of the supply.  Excluding the zero-rate element would mean calculating a proportion of a proportion of a supply.

Do I need to change what I put on my invoices?

Yes.  Your invoice should clearly indicate that the reverse charge applies.  You can use any of the following wording:

  • Reverse charge: VAT Act 1994 Section 55A applies
  • Reverse charge: S55A VATA 94 applies
  • Reverse charge: Customer to pay the VAT to HMRC

The invoice should clearly state how much VAT is due under the reverse charge but that the VAT is not being included in the amount charged to the customer.

How does Making Tax Digital affect the reverse charge?

It doesn’t.  MTD only changes the way in which business have to submit their VAT returns and how the account for their VAT.  This must now be completed digitally.  Otherwise MTD has affect on the reverse charge.

What about the flat rate scheme?

Reverse charge supplies can’t be accounted for under the flat rate scheme.  Flat Rate Scheme users who receive reverse charge supplies will have to account for the VAT due to HMRC and recover it simultaneously on the same VAT Return.  Users of the Flat Rate Scheme will have to consider if it’s still beneficial to them bearing in mind that under the scheme they cannot recover VAT incurred on purchases of materials, overheads etc.

What are end users and intermediaries?

For reverse charge purposes end users are businesses that are VAT and CIS registered but who do not make onward supplies of the construction services supplied to them.  Intermediary suppliers are VAT and CIS registered businesses that are connected or linked to end users by either being part of the same corporate group or by having a relevant interest in the same land where the construction works are taking place.  The reverse charge does not apply to supplies to end users and intermediary suppliers where they tell their supplier in writing that they’re end users or intermediary suppliers.

Does the notification by an end user or intermediary have to follow a specific format?

No.  As long as it is in writing. Typically it will probably be in a contract.

What about cash flow?

If you are a sub-contractor your as your customers will no longer be paying you VAT this will reduce the amount of payments coming into your business.  You’ll need to consider and plan for the impact of this on your day-to-day cashflow.  You can apply to be moved to monthly VAT returns to speed up any repayments that you are due from HMRC.

What if my client doesn’t provide me with their CIS details?

In order to apply the reverse charge you need to be sure that CIS applies to the payments made to you, even if there are no deductions due to having gross status. Therefore if they haven’t answered the CIS questions you should charge VAT in the normal way. If it turns out that CIS did apply they will be liable for accounting for the reverse charge not you.

Further information, a range of supporting tools to manage necessary communications up and down the supply chain and some suggestions to help mitigate the impact have been made available in the FIS Reverse Charge Toolkit here

Additional instructions for use of UKCA and the UKNI images

Additional instructions for use of UKCA and the UKNI images

The rules for using the UKCA and the UKNI images have added additional instructions regarding the height of the markings. This now state under “Rules for using the UKCA image” and “Rules for using the UKNI image”:

  • “the UKCA marking is at least 5mm in height for the whole logo, not individual letters – unless a different minimum dimension is specified in the relevant legislation.”
  • “the UKNI marking is at least 5mm in height for the whole logo, not individual letters – unless a different minimum dimension is specified in the relevant legislation.”

Previously this only stated “the UKCA (or the UKNI) marking is at least 5mm in height – unless a different minimum dimension is specified in the relevant legislation.

Please click here to view the updated government guidance for using the UKCA marking and here for using the UKNI marking.