The Rt Hon. Philip Hammond delivered his Spring Statement yesterday and as expected, so close to Brexit, there was not much by way of announcements or anything of any substance.
There was a promise of a full spending review following agreement of a Brexit deal and a detailed Budget in the Autumn. In the coming months, the Government also intends to publish a number of regulations, papers and guides and we have listed below six of the key areas covered.
For more details on what was covered in the Spring Statement , download your copy here.
HMRC has announced a one year delay on the implementation of VAT reverse charge to 1 October 2020. Whilst this is good news for construction businesses who were not yet prepared, it may cause additional work for those businesses who were ready to go.
The Office of Tax Simplification (OTS) has recently published their second report following the review of Inheritance Tax (IHT) which included 11 recommendations. These recommendations can broadly be categorised into three areas, namely, lifetime gifts, interaction with Capital Gains Tax (CGT) and IHT reliefs associated with businesses and farms. Some of the key recommendations have been summarised below...
Introduction of the reverse charge for construction services has been delayed and now takes effect from 1 October 2020. A business supplying goods or services is normally required to charge VAT and declare this to HMRC. However, with some UK specified supplies, the supplier does not charge and collect VAT on the supply. Instead, the customer is required to account for output tax to HMRC. This VAT is recoverable, subject to the normal rules and the mechanism is called the reverse charge.
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On 1 April 2013, the government introduced the Annual Tax on Enveloped Dwellings.
Wilkins Kennedy highlight some issues and possible solutions for businesses trading in and/or moving goods.