Domestic Reverse Charge 5: How it impacts VAT schemes
Neil Warren explains the effect of the new domestic reverse charge rules on users of the VAT flat rate scheme for small businesses and the VAT cash accounting scheme.
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Clients need this change like a hole in the head right now! It beggars belief that this is still scheduled to go ahead at this precise time with all the other things going on and survival the main consideration for most businesses. I have been in practice 30 plus years and have not come across fraud in the building industry to warrant such changes as this. Also, doesn't this push the VAT bad debt risk for HMRC further up the food chain, so the lossses are likely to be much larger?
Can I just check that there is no compulsion to leave the FRS or CAS if you make supplies under the DRC?
Is it that one "just" has to account for DRC supplies on the invoice basis, while other supplies remain subject to the existing scheme?