Construction Industry Latest Updates

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There are a number of challenges the construction industry is facing right now. Some are the same the sector has always faced, but newly heightened following COVID-19. On the other hand, the pandemic has brought new issues that are impacting productivity across the board.

At Accurox, we are more than familiar with these issues. We have years of experience working with construction industry businesses. We’ve brought our knowledge to bear on this subject and the result is our booklet Challenges Facing the Construction Industry Post COVID-19.

CIS (Construction Industry Scheme)

In the past the construction industry suffered from compliance issues (tax avoidance). As a result CIS was introduced in the UK in 1972.  It has evolved over the years into its current form. CIS covers both contractors and subcontractors, and regardless of which one you are, it is vital that you are familiar with your obligations under the scheme

IR35 (Off-payroll rules): What you need to know

IR35 (also known as off-payroll rules) was introduced for the public sector way back in 2000 and will be coming to the private sector in April this year.  HMRC uses the off-payroll rules to correctly identify the employment status of contractors.  This is to avoid the practice that had become quite common of contractors actually being what they called ‘disguised’ employees to avoid paying tax and NI contributions.

Get Your Construction Business Ready for the VAT Domestic Reverse Charge (DRC)

The VAT domestic reverse charge which was due to begin in 2020 has been delayed to March 1st, 2021.  The delay follows a previous reschedule to avoid the impact of Brexit.

The reprieve to 2021 is certainly welcome. Businesses are already struggling to stay afloat following the lockdown and the social distancing rules that still need to be observed. Despite this, it is important to prepare for the eventual introduction. The better prepared you are for the transition, the less likely it is to have an adverse effect on your business

The Domestic Reverse Charge Will Begin Soon

The previously delayed VAT Domestic Reverse Charge (DRC) comes into effect on  March 1st, 2021.  The DRC is essentially a change in the way VAT is handled for some construction services and the materials used, where they are supplied directly by construction and trade businesses.   According to HMRC, the reason it is being introduced is to reduce fraud in the building and construction industries