HMRC changes to the treatment of VAT in construction supply chain
Are you ready for the changes to VAT on Construction services?
You are probably aware of the pending changes in March 2021 coming from the HMRC, on how it is changing the treatment of VAT in the construction industry supply chain.
Many clients are already promoting awareness campaigns to their supply chain via mailshots and email information sheets.
Linsco Ltd are a valued service provider within that supply chain and have also been made aware of our own situation, as we are within the scope of CIS holding gross status.
Many clients are blanketing their supply chain who are within CIS with the new Domestic Reverse Charge, and have started confirming that payment of VAT will be made under the new rules, and that they will not be paying the VAT element on the invoices.
However, there are certain supplies within the scope of CIS that are exempt from the new Domestic Reverse Charge.
Supplies of workers or staff is one of the exempt services
Therefore, the service sthat Linsco provides to its clients falls outside the DRC changes, and we expect to be paid including vat as normal from March 2021.
For more clarification and information on this matter with links and contacts please use this page to read more.