HMRC have issued the Agent Update for February/March 2020. We have summarised the key content for you with links to our detailed guidance on the topics covered.

Hello,

This week we take a closer look at tax issues for property landlords, and there is also lots to interest employers and entrepreneurs.

Hello,

I gave a talk on the new Construction Industry Scheme (CIS) reverse charge VAT measures (due to apply in October) this week. My chatty audience asked many questions and we worked through many of the practicalities of implementing the changes that are required to reverse charge your supplies. I am not sure that any of my software currently allows me to use both cash and accruals accounting at the same time and I wonder how many people have actually tried a ‘walk through’ of a typical construction contract under the proposed measures. I recommend that you have a go.

HMRC have announced a change to the extension of the off-payroll rules (IR35) to the private sector which will now only apply to payments made for services provided on or after 6 April 2020.

Hello,

Last week, the government published draft legislation detailing the 6 April 2020 changes to National Insurance thresholds. Disappointingly, they have decided to diverge the thresholds at which employee and employer make contributions. We see the divergence of the thresholds as an added and unwelcome complication and something that is really annoying if you are programming software and tools.