Reverse Charge VAT & IR35 - what do they mean for your business?
HMRC have confirmed that from 1 March 2021, the way VAT is collected in the construction industry is changing.
In order to help businesses understand what they need to do, they are hosting a series of webinars:
‘How to apply the VAT reverse charge for construction services’
Find out when to apply the VAT reverse charge, how to show the reverse charge on your invoices, how your business may be affected and what to do if you make a mistake when applying the reverse charge.
You can ask questions using the on-screen textbox.
From 6 April 2021 the way the off-payroll working rules (often referred to as IR35) are applied will change.
The rules can apply if a worker (sometimes known as a contractor) provides their services through their own limited company or another type of intermediary to the client.
The rules make sure that workers, who would have been an employee if they were providing their services directly to the client, pay broadly the same tax and National Insurance contributions as employees.
The client is the organisation who is or will be receiving the services of a contractor. They may also be known as the engager, hirer or end client. The client will be responsible for determining if the off-payroll working rules apply.
All public sector authorities and medium and large-sized private sector clients will be responsible for deciding if the rules apply.
If a worker provides services to a small client in the private sector, the worker’s intermediary will remain responsible for deciding the worker’s employment status and if the rules apply.
Check how the April 2021 changes will affect you and what you have to do to prepare for them.