The CIS Domestic Reverse Charge Explained | Swift Accounting

Are you a CIS registered subcontractor and not VAT registered? If so, you could be losing out on thousands in VAT reclaims from HMRC!

Changes to the CIS Domestic Reverse Charge

Since 1^st March 2021 the Domestic Reverse Charge on CIS services has been in force, this applies to CIS registered subcontractors who are also VAT Registered.

In a brief summary, if a subcontractor provides CIS services to a contractor who is also VAT registered then the subcontractor must Zero rate the VAT on their sales and the contractor would reverse charge this on their VAT Returns.

“Swift Accounting & Bookkeeping Services took over my company’s accounting management since August 2020. Kieran handles with high professionalism and efficiency all my company’s accounting issues keeping me up to date for all the matters with consistency. Kieran is not only a Chartered accountant but he is a very responsible and responsive person delivering what he promises. I believe he would make any small or medium company thankful working with him.“
Theo Margazoglou – 3Dtechnologies4U Ltd

How Does The CIS Domestic Reverse Charge Impact You?

What happens next is that the subcontractor can claim VAT on their business expenses, whilst not paying any VAT on their sales, resulting in a refund of VAT every quarter!

So, if you are a subcontractor only providing CIS services to VAT registered contractors, then you may want to register for VAT ASAP.

For a full breakdown of the scheme, please see the HMRC Government website on https://www.gov.uk/guidance/vat-domestic-reverse-charge-for-building-and-construction-services

If you are unsure what these changes mean to you and your business, then contact us today at [email protected] or call us on 01237 478246 for a free, no obligations call with experienced and qualified chartered accountants.

We offer a full digital accountancy and bookkeeping service to the whole of the UK (excluding Northern Ireland), however, our key local services areas are Bideford, Barnstaple, Torrington, South Molton and the surrounding areas.

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2022-07-20

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2021-12-13

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2021-09-23

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2021-05-12

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2021-01-26

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2021-01-21

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2020-09-18

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What You Need To Know About The Construction Industry Scheme (CIS) Domestic Reverse Charge

Changes to the CIS Domestic Reverse Charge

How Does The CIS Domestic Reverse Charge Impact You?

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