• £34.1 billion additional tax was generated by tackling avoidance, evasion and non-compliance • The UKs tax gap in 2017-18 was 5.6% - this is the difference between tax that should be paid and what is actually paid • £24.4 million National Minimum Wage arrears identified and recovered on behalf of workers • 648 criminals and fraudsters successfully convicted • The proportion of error and fraud within the tax credits system in 2017-18 was 5.7% • Over £3 billion in tax protected or generated from tacking organised crime • 90,000 Help to Save accounts opened HMRC’s Chief Executive and Permanent Secretary, Sir Jonathan Thompson, said that it has been an important year for them, not just because of what it has achieved but also in the way it has had to adapt to deliver on urgent new priorities, balancing work alongside the huge, complex task of preparing for the UK leaving the EU. HMRC has around 5,400 full-time equivalent employees working on Brexit preparations, building the customs, VAT and excise systems the UK will need and preparing customers for leaving the EU, with or without a deal. HMRC has had to delay, for now, on some of its other projects such as further improvements to its digital services. HMRC has also regrettably, by its own admission, seen a slight dip below targets in its customer service by phone and post, but we are assured by the Chief Executive that the Revenue is working hard to respond to this, shifting its resources to cope with peaks in demand. HMRC’s Annual Report and Accounts for 2018-19 are available on GOV.UK, as is the newly published Annual Report from the Charter Committee which looks at the expectations of customers and HMRC, and how it uses that to strengthen its commitment to customer service.
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Contractors operating CIS – new VAT reverse charge on building and construction services 21 August 2019
Are you a contractor or an employment business operating the Construction Industry Scheme (CIS)? If so, you need to know that the new VAT reverse charge measure comes into effect on 1 October 2019.
VAT reverse charge for construction services - webinar HMRC is running a webinar on Monday 2 September and Wednesday 18 September. If you’re in the Construction Industry Scheme, find out if the charge affects you, how it may impact your cash flow and how to prepare for the changes. Register online here.
The key aspects of the reverse charge are:
• it will apply to standard and reduced-rated supplies of building and construction services made to VAT registered businesses, who in turn also make onward supplies of those building and construction services; • the scope of supplies affected is closely aligned to the supplies required to be reported under the CIS, but does not include supplies of staff or workers by employment businesses; • the legislation introduces the concept of “end users” and “intermediary suppliers”. This covers businesses or groups of associated businesses that do not make supplies of building and construction services to third parties and as such are excluded from the scope of the reverse charge if they receive such supplies. Examples include landlords, tenants and property developers.
Further information on the scope of the reverse charge and how it will operate can be found in this guidance note, published in June 2019. The guidance will continue to be updated, as necessary.
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The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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