HMRC has begun writing to all VAT registered businesses currently trading with the EU, to explain the steps they need to take to prepare for the new trade arrangements from 1 January 2021.
On 21 July the government published its 10 year strategy for the tax system. This included its plans to extend the Making Tax Digital initiative.
As part of the government’s approach to support economic recovery, the Chancellor announced a temporary cut in the rate of VAT, from 20% to 5%, from the 15 July 2020 to 12 January 2021 for the leisure and tourism sectors.
A summary of the Chancellor’s plan for jobs – including Job Retention Bonus, Kickstart Scheme, Green Homes Grant, Stamp Duty Land Tax , VAT for hospitality & tourism sector and “Eat Out to Help Out”.
The VAT domestic reverse charge has been delayed. Use the time to understand and prepare for it if you are a VAT registered individual or business in the construction industry.