An overhaul of VAT in the construction industry has been pushed back to 2021 due to the impact of the coronavirus pandemic. Reverse charge VAT, which would put an end to subcontractors receiving VAT payments in most situations, will now be introduced on 1 March 2021. This pushes the scheme back five months from the previous start date of 1 October 2020. It is the second time the new regime has been delayed, having initially been scheduled to come into force last October. The government said the decision to delay had been taken to help “businesses overcome the effects that the coronavirus pandemic has had on them”.

See more here https://www.constructionnews.co.uk/financial/reverse-charge-vat-delayed-until-2021-05-06-2020/


SEISS Portal is Now Open

Portal now open for the 2nd claim under the Self-employed Income Support Scheme (SEISS)
Self-employed individuals and those in business partnerships who are eligible can from Monday 17 August claim a second grant.
All claims must be submitted by 19 October.


Change of rules for reporting CGT.

Are you aware the deadline for reporting Capital Gains Tax on the sale of properties has changed?

If you sold your property after 6th April 2020 you must report and pay Capital Gains Tax within 30 days of selling property in the UK.

For example, if the gain arises on 1st July 2020, the CGT will now be due on or before 30th July 2020.

You may have to pay interest and a penalty if you do not report gains on property within the time limit.


Second SEISS Grant Applications

If you are self employed, trade as a sole trader or as a partnership and your business has been adversely affected as a result of COVID-19 on or after 14th July 2020 you will be able to make a claim from 17th August 2020 for the second and final grant. The submission deadline for this claim is 19th October 2020.


Making Tax Digital - Update

From April 2022, the programme will be extended to all VAT registered businesses with turnover below the VAT threshold.

From April 2023, it will apply to taxpayers who file income tax self-assessment tax returns for business or property income over £10,000 annually.


VAT 5% hospitality rate now in effect: 

Pubs, restaurants and attractions can now charge less tax with value added tax dropping from 20% to 5% for six months.

The cut applies to food and non-alcoholic drinks as well as accommodation and admission to attractions across the UK, such as zoos and cinemas.


If you bring back someone who was furloughed - and continuously employ them through to January HMRC will pay you a one-off bonus of £1,000.


Flexible Furlough

From 1st July businesses can bring furloughed employees back to work on a part time basis 

Firms will be given the flexibility to decide the hours and shift patterns of their employees – with the government continuing to pay 80% of salaries for the hours they do not work.

The scheme will remain open until the end of October and will continue to support jobs and business in a measured way as people return to work.


SEISS Deadline

COVID-19: Self-Employment Income Support Scheme (SEISS) 

The deadline for claiming the self employed grant is 13 JULY 2020. 

You can apply for the grant even if you have continued to work as long as you have been adversely affected by the coronavirus crisis. 

The Claims for the second round of grants at the lower rate may be made in August. - Further information to follow closer to the time.


The introduction of the domestic reverse charge for construction services will be delayed for five months.

The new way of accounting and paying for VAT had been due to come into force on 1 October 2020 and will now be delayed until 1 March 2021 due to the impact of the coronavirus pandemic on the construction sector.

The Reverse Charge moves the responsibility for reporting a VAT transaction from the seller to the buyer of goods or services.