Q. I’m a builder who is registered for the CIS. Most of my work is as a subcontractor for several large companies. I’m VAT registered and so have been subject to the new VAT reverse charge rules since 1 March 2021. The legislation changes combined with a reduction in work due to the pandemic have seriously affected my finances. Could I use the Cash Accounting Scheme to help with this?
A. Unfortunately, you can’t use the scheme for services which are subject to the domestic reverse charge so signing up to the scheme wouldn’t be of assistance. Nevertheless, if you now find that you are submitting repayment VAT returns each quarter you can ask HMRC to allow you to submit monthly returns which will speed up your input tax claims and improve your position. The downside to this is that you will have to submit 12 VAT returns a year instead of four so you will have to weigh up the benefit against the additional administration.
The information provided in this blog is for general informational purposes only and should not be considered professional advice. As far as we are aware, the content is accurate at time of publication. Torgersens assumes no responsibility for errors or omissions in the content or for any actions taken based on the information provided.
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