Are you a VAT registered business in the Construction Industry?
Do you supply other VAT registered Construction Industry businesses?
If you answer YES to both of the above questions, then you’re possibly facing a massive change to your accounts invoicing procedures.
When your customers receive your VAT invoice for CIS services they may have to pay the VAT directly to HMRC on your behalf. As a supplier your business will no longer receive the VAT, and this could have a significant impact on your cash flow.
Seek advice on this now
It is important that you seek advice on this now. It may be advisable in some circumstances to switch to monthly VAT returns in order to minimise the cash flow impact.
HMRC’s guidance can be found by searching for ‘Domestic Reverse VAT Charge’ on www.hmrc.gov.uk. Alternatively, speak to a professional with experience and knowledge of CIS.
If any businesses would like advice specific to their own circumstances, please get in touch with us for a free consultation at Pennine Accounting in Littleborough.
Email: enquiries@pennineaccounting.co.uk
Phone: 01706 558 584