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Good news

https://www.gov.uk/government/publications/revenue-and-customs-brief-10-2019-domestic-reverse-charge

Didn't find your answer?

HMRC today announced they are delaying the introduction of the domestic reverse charge for construction by a year to 1 October 2020 per a statutory instrument laid this afternoon. See: https://www.gov.uk/government/publications/revenue-and-customs-brief-10-...

http://www.legislation.gov.uk/uksi/2019/1240/contents/made

At least that's one less thing to worry about right now!

https://www.accountancydaily.co/u-turn-start-date-construction-industry-...

Replies (16)

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By Rick Deckard
06th Sep 2019 15:47

That is useful, although somewhat unsurprising seeing as not one of my clients had heard of it when I mentioned to them.

I guess I'm going to have to mention it to them again...

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RLI
By lionofludesch
06th Sep 2019 16:28

To be honest, it makes much less sense to delay the DRC than it did to delay MTD.

I was happy with the DRC. Very straightforward and better bad debt protection for the suppliers. I would imagine more folk will struggle with MTD than DRC.

Still, government decisions rarely make much sense.

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By pjd17mini
06th Sep 2019 17:13

Good news perhaps on one hand, but frustrating that we've spent time and money getting ourselves and our staff clued up on it now that the implementation is less than a month away - and we've sent information to clients - turns out that was a complete waste of time.. and more time needed now to tell them to ignore it!

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Psycho
By Wilson Philips
06th Sep 2019 17:47

I don't consider it good news at all. It is relatively straightforward, should cost no-one anything, and it has been proven to work in combatting tax evasion.

For those that have invested a lot of time, energy and money in advising our clients of the changes it is frustrating to say the least.

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Replying to Wilson Philips:
RLI
By lionofludesch
06th Sep 2019 17:58

Wilson Philips wrote:

I don't consider it good news at all. It is relatively straightforward, should cost no-one anything, and it has been proven to work in combatting tax evasion.

For those that have invested a lot of time, energy and money in advising our clients of the changes it is frustrating to say the least.

On the plus side, I've charged folk for that advice. It'll stand in a year's time and I see no reason to waive my charges.

On the minus side, there are more complex things to postpone. The only possible excuse is that software is not yet in place but I'm not sure it couldn't have been worked around with goodwill on all sides.

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Replying to lionofludesch:
Psycho
By Wilson Philips
06th Sep 2019 18:53

Yes, where specific advice has been charged for but we’ve also invested time and money in running seminars, producing information sheets etc.

Yes, the advice may stand in 12 months’ time but (a) clients will have forgotten it (b) the provisions may have changed (c) contractors will be, rightly, miffed at having spent time and money (in addition to our fees) writing to all their subcontractors telling them what to do from 1 October - and who are now going to have to contact them again to reverse the instructions.

I see very little to be positive about.

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Replying to lionofludesch:
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By legerman
06th Sep 2019 23:50

lionofludesch wrote:

On the minus side, there are more complex things to postpone. The only possible excuse is that software is not yet in place but I'm not sure it couldn't have been worked around with goodwill on all sides.

I agree, I was all ready for it. I've been reminding my client regularly about it so he was prepared for it, and I was just waiting on which software to use. Sage already has it, and looking around the other day, Money Manager has also implemented it.

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Quack
By Constantly Confused
06th Sep 2019 17:52

Well that was a waste of my time then...

At least the newsletters and notes are ready to be (re)sent in 12 months I suppose. Unless of course they change the rules substantially.

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Psycho
By Wilson Philips
06th Sep 2019 19:01

The explanation is that some businesses are not ready to implement the changes.

I would suggest that far more important than that is the fact that a greater number of businesses are not ready for the implementation of a no-deal Brexit. It strikes me that that is far more worthy of postponement.

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Replying to Wilson Philips:
RLI
By lionofludesch
07th Sep 2019 10:31

Wilson Philips wrote:

The explanation is that some businesses are not ready to implement the changes.

Some businesses weren't ready to implement MTD but that was all their fault.

I would suggest that if any businesses aren't ready to implement the much more straightforward DRC, that's their fault too.

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Replying to lionofludesch:
Psycho
By Wilson Philips
07th Sep 2019 10:42

Completely agree, but whatever the explanation given by HMRC it's missing the point that in my view there is something much, much, more important that needs to be postponed (although of course Brekshit is not the responsibility of HMRC).

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Replying to Wilson Philips:
RLI
By lionofludesch
07th Sep 2019 11:08

I blame the foreigners. They just won't do as Boris tells them.

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Replying to lionofludesch:
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By legerman
09th Sep 2019 16:42

lionofludesch wrote:

I would suggest that if any businesses aren't ready to implement the much more straightforward DRC, that's their fault too.

I would suggest a lot of businesses didn't know about it. I do admin for my CIS client and there's been diddly squat from HMRC. I emailed his current contractor to check their status and they didn't have a clue what I was on about. Someone on another forum, who works for a construction company in accounts, hadn't heard of it either. As Meatloaf didn't say "3 out of 3 is *&@ing terrible"

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Replying to legerman:
RLI
By lionofludesch
09th Sep 2019 16:53

Surely these advisers had agents who could've informed them.

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Replying to legerman:
RLI
By lionofludesch
09th Sep 2019 16:53

Surely these advisers had agents who could've informed them.

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By SouthCoastAcc
09th Sep 2019 11:21

The problem with delays is my clients do not take proposed changes from HMRC seriously.

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By Tax Dragon
09th Sep 2019 11:34

Sounds like another comment on Brexit.

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