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VAT Reverse Charge for Construction Services
The VAT domestic reverse charge for building and construction services comes into effect from 1 October 2019. The reverse charge represents part of a government clamp-down on VAT fraud.
The Construction Industry Scheme
Special tax rules apply to the construction industry and workers which are detailed in The Construction Industry Scheme (CIS).
How do I apply for Gross Payment Status? – CIS contractors
If you have a CIS registered limited company, obtaining gross payment status will allow you to be paid a gross amount rather than being taxed at 20% (CIS registered) or 30% (non-CIS registered).
Obtaining Gross CIS Payment Status
Although the amount of tax ultimately paid on profits will be the same if you obtain CIS gross payment status, improvements in cashflow and reductions in the cost of credit, such as overdraft interest, should easily make the application process worthwhile.