Keep your construction clients updated: CIS VAT reverse charge delayed
For businesses involved in buying and selling construction services, the start date for the introduction of the Construction Industry Scheme (CIS) VAT Reverse charge has been set back a year to October 1st, 2020.
One of the reasons was due to a lot of businesses in the construction sector not quite being ready to implement the charge, and another is Brexit; to avoid any changes and impact that the UK leaving the EU may initially have.
Initially due to start at the beginning of next month, the charge is a change in how VAT is handled for certain kinds of construction services in the UK and applies only to transactions between VAT-registered contractors and sub-contractors who are registered for the CIS.
It means sub-contractors will require the contractor employing them to handle and pay the VAT directly to HMRC.
Initially mentioned at the 2017 Autumn Budget, following a draft legislation and technical consultation on the impact which took place in summer 2018, the final guidance was published in November 2018.
Businesses will need to adapt their accounting systems for dealing with VAT as they’ll no longer get VAT payments from customers for services where the reverse charge applies.
The United Kingdom’s withdrawal from the European Union will have many knock-on effects for businesses affected by the UK’s participation in the single market. Business sectors are also keeping a close eye on negotiations between the Government and the EU over the terms of leaving and preparing for all conceivable outcomes.
If you have clients in the construction industry, it’s important to communicate these changes to them and keep them informed as their tax advisor.
How can you best communicate to specific client sectors and automate tax updates?
An easy way to ensure you are always keeping your clients up-to-date with the latest tax information is by sending Push Notifications.
Push Notifications are five times more effective than email, and in this digital age they allow key information – such as tax changes and legislation updates, government policies, thresholds and other key issues affecting your client base – to be communicated to a group or specific set of users.
You can create client groups and split your users into sections, such as CIS workers, self-employed, tradesman, small business owners, contractors and more. This allows direct, targeted messages to your clients with a personal, friendly tone to update them and ensures they are connected to your firm and brand 24/7, cementing client trust.
You can also automate communications to clients, for example, with each Budget and Spring/Autumn Statement, MyFirmsApp delivers critical Budget content along with commentary to 1200 accounting firms in the UK – reaching more than a quarter of a million UK businesses and individuals on the home screens of their Smartphones and tablets. This includes automated live updates throughout the day – and the push packs made available to customers also means any announcements on topics and tax news affecting your clients are also pushed out without any effort from the accountant.
With forward-thinking firms launching their own App to differentiate and provide a tailored digital platform for client engagement and profitable relationships, it enables them to position their brand at the centre of their client’s mobile lives. Download the App free and try it for yourself – just click the button below!