HMRC talking points have a webinar on the new VAT reverse charge for construction services on the 30th Sept for anyone who is interested, but it does not give you much time seeing as it comes into effect on Oct 1st, still probably worth a look though for anyone who is still unsure.
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Doug
These are only my opinions of how I see things and therefore should not be taken as advice
Morning Doug
What on earth are you doing on here when you are on holiday. Get away - in the nicest possible way!!!!!!! Get back on that lovely looking beacH. Jammy thing.
Thanks for the heads up on the webinar on behalf of the silent majority!
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Welcome back, hope you had a great time. There's been a webinar already on this if you don't want to wait until the end of the month. The link is in this article by Neil Warren
I've had a nosy at this (and had part of an ACCA Saturday course on it), and I think I've got a pretty good grasp on how it's going to work, but I can't think of a way to explain it to CIS clients without completely confusing them. Has anyone seen anything online that your typical construction bod will understand?
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All thoughts are my own and should not be used as professional advice.
Ive not followed much as Ive dumped all my CIS clients (way back when, now feeling vindicated, although it could be a great income earner!). Would suggest Neil Warren's articles, Taxation and Ross Martin are places to go to cobble something together on a case by case basis. Or get them to employ the likes of Neil, or our old mucker Les (VAT specialist) to get some specificly tailored advice. I can give you Les' contacts if you wish. Very highly recommended, a regular on here until not so long back and has helped me in the past.
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Although a bit bulky, I think the gov.uk site explains it reasonably well. I'd be inclined to extract what you need and just send your clients the relevant info.
Incidentally, has anyone come across any suitable software yet, for when it comes into force? I've only the one client this affects, but i don't want to be messing about doing adjustments every quarter.
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
Welcome back, hope you had a great time. There's been a webinar already on this if you don't want to wait until the end of the month. The link is in this article by Neil Warren
Cheers John, nice to be back will have a look at the article when I get a bit more time just to make sure my understanding is correct.
Hi Rachel
Not sure about online but the main source of information that I used was an article in Taxadvisor which I get monthly, I will have a look later if I can access it through my CIOT membership and if I can then I will post it.
I think the main problems are going to be determining if the client is the end user or not as Joanne's link discusses and getting your clients to set out their Invoices correctly and showing the correct reference to the reverse charge
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Doug
These are only my opinions of how I see things and therefore should not be taken as advice
Incidentally, has anyone come across any suitable software yet, for when it comes into force? I've only the one client this affects, but i don't want to be messing about doing adjustments every quarter.
Hi John, same as you I only have one client it will effect or will have if I ever get the VAT number (see other post) but I put September as the quarter end so will have plenty of time to get it sorted
Hi Rachel, copy of the previous edition of Taxadvisor the article is on page 30
https://www.taxadvisermagazine.com/edition/5264
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Doug
These are only my opinions of how I see things and therefore should not be taken as advice
I am going to a seminar on this next week, it's an accounts practice I think that are putting it on. I have been invited by another accountant, so thought it was worth going.
I'll let you all know how I got on if I don't fall asleep!
Hi John, Sage already has a domestic reverse charge tax code as it has been running for a while with mobile phones so other software may have the same sort of system hidden away.
Thanks for the links Doug and John, I'll have a good read of them both when I get a chance. I think Joanne's right, it's going to be a case of cobbling something together depending on the client. If I come up with anything I'll let you know!
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All thoughts are my own and should not be used as professional advice.
Thanks Riel. I've had a scout around this morning and I see Money Manager can also do reverse charge, so I may well go with that unless VT implement something.
Let us know how you get on Amanda. Like Doug and Rachel, I believe I have grasped how it works, but you can never be sure if you've missed anything.
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
Hi John, Sage already has a domestic reverse charge tax code as it has been running for a while with mobile phones so other software may have the same sort of system hidden away.
Is this just the V26 of Sage 50 Riel, or SageBusiness (sage one as was) as well?
You may be able to add it in via self coding as well, albeit Ive not had a go recently at such.
John - can you self code VAT lines on VT? Im not sure how the reverse charge works in VT - never actually run any VAT in VT!
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
I am going to a seminar on this next week, it's an accounts practice I think that are putting it on. I have been invited by another accountant, so thought it was worth going.
I'll let you all know how I got on if I don't fall asleep!
Yey, you are back!!!
Prefer the real tiger to the kitten though . One of my clients has had a stray cat turn up at his premises - think it travelled in an AA van. Not chipped. Been there a few weeks, the cat sanctuary lot wont take it cos they are full, so my client now has a workshop cat! Im not a fan of the little blighters and highly allergic, although this one is pretty cute, as cats go!
-- Edited by Cheshire on Tuesday 3rd of September 2019 01:52:07 PM
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
My hubby is suppose to be allergic to cats but he's ok with this one! Bengals don't malt as they have hair not fur. He's more like a dog than a cat, he's great company.
Hi, We are using V25 on Sage 50 accounts professional, but I found the code on the training company and the vat rate on that is 17.5% so I imagine it has been there for a while. Whilst I was at a DRC seminar this morning a guy from Sage said there will be an update on around the 16th of this month to cover it.
There are two types of domestic reverse charges, mobile phones and computer chips and gold. The mobile phones one is boxes 1,4 and 7. Gold is 1,4,6,7 (for customer - supplier is always 6).
DRC for construction is a 1467 sort of reverse charge.
I have no idea why mobile phones are 147 and other RCs are 1467, but that is what the authorities say:
Sorry, you are right. Oddly enough when I first put this into my system I put in 147, then for some reason I thought it was 1467, but obviously it is 147. I had changed the software, but in fact not made it live. So thanks for that. It is chips and mobile phones rather than gold. I have reversed the change I made.
will have a look at the article when I get a bit more time just to make sure my understanding is correct.
. One of my clients has had a stray cat turn up at his premises - think it travelled in an AA van. Not chipped. Been there a few weeks, the cat sanctuary lot wont take it cos they are full, so my client now has a workshop cat! Im not a fan of the little blighters and highly allergic, although this one is pretty cute, as cats go!
