VAT Reverse Charge Rules – Update!

We’ve got some good news about the previously announced VAT changes coming to the construction industry. There has been a VAT reverse charge rules – Update!  This has now been delayed a year, giving you more time to prepare if they affect you. The domestic reverse VAT charge was due to take effect at the beginning of next month, as we noted in our previous E Mail on the topic.

When will the VAT changes now take effect?

The VAT domestic reverse charge for construction services will now start on 1 October 2020.

Why the delay?

The government agreed to postpone the change after lobbying by representatives of the construction industry concerned that businesses needed more time to prepare for what could be a significant change. If you are unsure of these changes or require any further information we strongly suggest you contact your accountant.

Waller Building and Glazing Services

In the last seven years, Waller Associates has worked in over 150 schools. Our reputation in the education sector is growing fast. Waller Building and Glazing is Fensa, Chas, Constructionline and Safecontractor registered.  Additionally, all of our staff are DBS certified. This means that our staff are suitable to work in schools. Furthermore we would be happy to price any maintenance or refurbishment works for your school.

Building Services We Provide In Schools

The building services we provide include smaller refurbishments through to extensions and new builds. We cover all the building as well as glazing services that a school would require. This includes, toilet and kitchen refurbishments. We also install fencing, flooring and carry out complete new builds. Check out our website case studies to see projects we have recently completed.

Glazing Services We Provide In Schools

We carry out works from window and hinge repairs through to complete aluminium and uPVC window and door installations.

Contact Waller Building and Glazing Services

Based in Sittingbourne, Kent, we carry out works throughout the south east of England. If you would like a quotation on any size of building project, please contact us. Telephone – 01795 424435 Additionally email mark@wallerservices.com

Visit our twitter page to see what we are up to at the moment https://twitter.com/BuildingOnTrust

As well as twitter, why not visit our Facebook page too

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Construction (Design and Management) Regulations (CDM)

Construction (Design and Management) Regulations (CDM)

What Are They?

The construction (design and management) regulations (CDM) were introduced in 2015 and are the main set of regulations for managing the health, safety and welfare of construction projects and spell out the legal duties of everyone involved.

Who Do They Affect?

Well, they affect everyone involved on a construction project, no matter the size or type of work being undertaken, with all concerned having legal duties under CDM 2015.  Even a simple domestic job being carried out in your own home, where you have employed someone to carry out the work for you, falls under the CDM Regs!

The CDM Regulations define responsibilities for particular roles.  The main roles are:

  • Client
  • Designers
  • Contractors

If there are more than one contractor involved on the project then there are additional roles of Principal Designer and Principal Contractor.

Okay, So What Do I Need To Do?

If you are a client, you have a legal responsibility to make sure suitable arrangements for managing a project are in place.  This includes:

  • Providing pre-construction information to every designer and contractor either bidding for the work or already appointed to the project
  • Appointing the contractors and designers to the project (including the principal designer and principal contractor on projects involving more than one contractor) while making sure they have the skills, knowledge, experience and organisational capability
  • Ensuring other duty holders are appointed as appropriate and that they carry out their duties correctly:
    • The principal contractor or contractor (for single contractor projects) prepares a construction phase plan before that phase begins
    • the principal designer prepares a health and safety file for the project and that it is revised as necessary and made available to anyone who needs it for subsequent work at the site
  • Allocating sufficient time and resources for each stage of the project
  • Making sure relevant information is prepared and provided to other duty holders
  • Maintaining and reviewing the management arrangements for the duration of the project
  • Providing welfare facilities for the duration of the construction works
  • Notify the Health & Safety Executive (HSE) on projects lasting longer than 30 days with more than 20 workers working simultaneously at any point or exceeds 500 person days

The only exception to this is on small domestic projects where client’s responsibilities are normally transferred to the contractor.

 

This Sounds a Bit Complicated! What Can I Do To Make Things Simpler?

Things only get complicated for the client when more than one contractor is involved on a project as that is when a Principal Designer and Principal Contractor must be appointed.  You also need to produce a Health & Safety file for the works.

So, if you have a project that involves more than one trade, appoint a Main Contractor to take care of the majority of your legal responsibilities.  For example, when we get appointed we:

  • Assist with the initial design and specification
  • Produce a Construction Phase Plan before works commence
  • Plan, manage and monitor all work carried out, taking into account the risks to anyone who might be affected by it (including members of the public) and the measures needed to protect them
  • Ensure all workers have the right skills, knowledge, training & experience
  • Provide appropriate supervision, instruction and information
  • Have ongoing arrangements in place for managing health and safety throughout the construction phase
  • Liaise with the client for the duration of the project to ensure that all risks are effectively managed
  • Ensure the site is safe & secure with adequate welfare facilities
  • Where required, produce a Health & Safety file
  • Advise on when the HSE need to be notified and assist in filling in the relevant forms

However, we would suggest that on larger, more complicated projects a Principal Designer is appointed as there may be more Health & safety issues to be considered during the planning phase of a project.  You may also want to appoint someone to oversee the works on your behalf to ensure all your legal responsibilities are being met.

 

If you would like more information then please do not hesitate to contact me on 07973-21644 or email steve@wallerservices.com .  Alternatively, contact Mark Holdsworth, our Business Development Manager on 07805-977651 or mark@wallerservices.com to discuss any future projects you are considering.

Kind Regards

Steve Waller

Managing Director

 

For more information reguarding the building industry and the works we undertake, please click on the following link to our website homepage https://www.wallerservices.com/

 

 

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VAT Reverse Charge Rules

NEW VAT RULES FOR BUILDING & CONSTRUCTION SERVICES – REVERSE CHARGE

 

IMPORTANT CHANGES FROM 1ST OCTOBER, 2019

You may or may not be aware but from 1 October 2019, HMRC are changing the way in which businesses operating within the construction sector account for VAT in respect of services provided under the Construction Industry Scheme.  They are the new VAT Reverse Charge Rules.

These changes only affect work you undertake for other contractors who are not the final end user, so any work you do for domestic customers (or non VAT-registered contractors) will not be affected by these changes and you will charge VAT in the normal way.

Nothing will change up to 30th September, 2019, but from 1st October, 2019, the new rules come into effect for any business that is:

  1. Registered under the Construction Industry Scheme (CIS)
  2. VAT registered

The rules apply to both Sales invoices (those sent to your clients) and Purchase Invoices (those received from your supply chain).

Sales Invoices

From 1 October 2019, if you raise a sales invoice to another VAT and CIS registered business and the supply is standard or reduced rated, then you will not add VAT to your invoice and you will need to state on the invoice that ‘VAT is not being charged under the Reverse Charge rules’ and also clearly state the amount of VAT due under the domestic reverse charge.

The only exception will be if the business to whom you are raising the invoice has confirmed to you that they are the final user of the service, building or structure. In which case, VAT should be charged in the normal manner.

Example:

You are employed as a subcontractor to carry out some works by a main contractor valued at £1,000.00 + VAT.

You will invoice for £1,000 but not add the £200 VAT to the amount due:

Nett Amount: £1,000.00

VAT Amount: £0.00

Total Due:   £1,000.00

You will state on the invoice ‘VAT is not being charged under the Reverse Charge rules’

You will also state the amount of VAT due under the domestic reverse charge is £200.00

You will then be paid £1,000.00

The main contractor’s VAT return will show £1,000 plus £200 VAT as both an input and an output VAT (which, in effect, cancel each other out)

Because you have not been paid £200 VAT, you will not owe HMRC £200 VAT.

 

For clarification, if you do some work for end consumers like domestic customers, or for customers who are not VAT registered or not CIS registered, you will bill them the VAT as you currently do. The new rules only affect supplies you make to firms who are not the final user of the building or structure and who are VAT registered. It is therefore sensible from now on to keep a record of your customers’ VAT numbers and ask them whether they include the payments they make to you on a CIS return (i.e. the work is within the CIS scheme and they are CIS registered).

Please be aware that if invoices are raised incorrectly then expect them to be returned to you so they are resubmitted in the right format which may cause a delay in payment being made.

 

Purchase Invoices

If you receive an invoice under Reverse Charge rules, make sure it is correct and follows the guidelines above.  If it does not then it needs to be returned and a replacement issued. You also have to make sure that the VAT is correctly accounted for on your VAT return.

 

The change is ahead – you must prepare!

If you use computerised software for your accounting you need to ensure that it has been updated and correctly configured to comply with the Reverse Charge rules.  Your sales invoices, when Reverse Charge rules apply, should not include VAT but clearly state the amount together with the statement ‘VAT is not being charged under the Reverse Charge rules

You will also need to account for the VAT correctly on any purchase invoices you receive.  Most software offers a tax code option of Reverse Charge 20% or 20% RC which should then correctly account for the input and output VAT on your VAT return.

You may also need to prepare for any cash flow implications.  If you carry out a lot of subcontractor works then you may find yourself in a position where you are paying out VAT on the materials you are purchasing but not charging your clients and having to wait until you do your VAT return to claim the VAT back.  We strongly suggest that you speak to your accountant about this as there may be alternative options such as making monthly VAT returns.

Hopefully this explains the VAT reverse charge rules.

Steve.

 

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Self Building VAT Rules

The VAT rules can be a bit tricky at the best of times and as a Building Contractor it can be very difficult to ascertain what rate of VAT should be charged to a client.  It can be zero-rated if a new build, a reduced rate of 5% for some conversions or renovations or a standard rate (currently 20%) depending on the circumstances.  Below are some guidelines on what to charge but please make sure you check with HMRC first.  Please note that this information specifically relates to newly qualifying dwellings created by self-builders. I hope the pointers when it comes to self building VAT rules are helpful.

 

WHAT VAT RATE TO CHARGE SELF-BUILDERS?

 

New Build Houses

When you are constructing a new dwelling this should be invoiced at a VAT rate of 0%.  New build houses are just that; a brand new domestic property built from scratch.  It can also include a replacement property but only if the previous building is completely removed (and that includes the footings & drainage!)

 

Conversions

When a non-residential building is converted into a qualifying dwelling, this should be invoiced at a reduced rate of 5%.  It needs to be a stand alone property and not linked to a main property (like a granny annexe)

 

Renovations

If a property has not been lived in for 2 years or more, renovation works on that domestic property can be invoiced at a reduced rate of 5%

 

Listed Buildings

I’ve written a previous Blog on this but basically, since 1st October, 2012, works on Listed Buildings is now charged out at the standard rate (currently 20%) and not zero rated as it used to be.  However, any of the rules listed above still apply

 

 

The main thing to remember is that you should only zero-rate or reduce-rate your work once you are satisfied that the project meets the criteria set out in the relevant section of Notice 708.  You also need to keep a copy of the Planning Permission, and any listed building consent or other evidence, with your records so you can demonstrate why the standard-rate of VAT was not charged.

Further information can be found at www.hmrc.gov.uk/notice708

 

Waller Building Services

Our reputation in the commercial sector is growing fast. The services we provide include smaller refurbishments through to extensions and new builds. Waller Associates is Fensa, Chas, Constructionline and Safecontractor registered. We are also on the Kent County Council contractor list. All of our workmen are DBS verified. This means you can be assured that our staff are suitable to work in your school. You can also be confident that we are a company that is built on trust. If your school is planning any size of project, we would be delighted to provide you with a quotation. Furthermore we would be happy to price any maintenance or refurbishment works for you.

Building Services We Provide

We cover all of the building as well as glazing services that a workplace may need. This includes, toilet and kitchen refurbishments. We also install fencing, flooring and carry out complete new builds. Furthermore the glazing division carries out window repairs. We also install uPVC and aluminium windows and doors. View our case studies to see projects we have recently completed on our website.

Contact Waller Building

Based in Sittingbourne, Kent, we carry out works throughout Kent as well as the south east of England. If you would like a quotation on any size of building as well as glazing project, please contact us. Telephone 01795 424435 additionally email mark@wallerservices.com

Visit our twitter page to see what we are up to at the moment https://twitter.com/BuildingOnTrust

 

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EduKent Expo Conference 2017

EduKent Expo Conference 2017 – This year marks Waller Building & Glazing’s 6th year exhibiting at EduKent Expo & Conference. The EduKent conference is Kent’s leading event for the promotion and development of effective school leadership, management, learning and teaching featuring a high-level conference, inspirational workshops and a comprehensive exhibition of leading suppliers of services to schools and academies.

Waller Building & Glazing have worked in over 150 Kent Schools and we feel the Expo is the the ideal platform for Waller Building & Glazing to show services we provide and works we have previously undertaken.

If you are interested in attending this free event or would like further information please refer to the following website  http://www.edukentexpo.co.uk/

Come and visit us on stand 209 at the Kent Event Centre, Kent Showground on Wednesday 8th November 2017.

Waller Associates Building on Trust

All of Waller Building and Glazing Services work force are DBS cleared. We are also members of Fensa, Constructionline, Chas and Safecontractor. As a result you can be sure that we are a company that you can trust.

Contact Waller Building and Glazing Services

Based in Sittingbourne, Kent, we carry out works throughout the south east of England. For a quotation of any size of glazing project, please contact us call – 01795 424435. Additionally, you can email mark@wallerservices.com

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EduKent Expo Conference 2016

EduKent Expo Conference 2016 – This year marks Waller Building & Glazing’s 5th year exhibiting at EduKent Expo & Conference. The EduKent conference is Kent’s leading event for the promotion and development of effective school leadership. Additionally it is management, learning and teaching featuring a high-level conference, inspirational workshops and a comprehensive exhibition of leading suppliers of services to schools and academies.

Waller Building & Glazing have worked in over 125 Kent Schools and we feel the Expo is the the ideal platform for Waller Building & Glazing to show services we provide and works we have previously undertaken.

If you are interested in attending this free event or would like further information please refer to the following website  http://www.edukentexpo.co.uk/

Come and visit us on stand 165 at the Kent Event Centre, Kent Showground on Wednesday 9th November 2016.

Waller Associates Building on Trust

All of Waller Building and Glazing Services work force are DBS cleared. We are also members of Fensa, Constructionline, Chas and Safecontractor. As a result you can be sure that we are a company that you can trust.

Contact Waller Building and Glazing Services

Based in Sittingbourne, Kent, we carry out works throughout the south east of England. For a quotation of any size of glazing project, please contact us call – 01795 424435. Additionally, you can email mark@wallerservices.com

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New Apprenticeship Levy Scheme

This is a brief summary of how things are changing:

The new Apprenticeship levy scheme:

If PAYE turnover is over £3m then a 0.5% levy has to be paid in (with an initial tax allowance of £15k).  this equates to no levy being paid on the first £3m of PAYE turnover

If PAYE turnover is less than £3m then no levy will be paid.  However, any training will have to be paid for and subsidised by the government at a rate of 2:1 (ie. An electrician’s course will be £27k; £9k paid by the Company with £18k subsidised by the government)

 

Some of the new rules:

  • The levy will have to be paid on a monthly basis into an account.  If that fund is not claimed within 18 months then it will be lost and cannot be claimed back
  • A Company can only claim back the amount they have paid in, no more.  If they do any more training after their pot is empty then they will only get an additional 10% subsidy against it.  Bearing in mind there is a £15k tax allowance, a Company with £5m PAYE turnover would have paid in £10k but have a pot of £25k
  • The funds can ONLY be used for apprenticeship training
  • This levy is going to be in addition to the CITB levy!
  • To claim the funding, it will be split (For example with 16-18 year olds):

Recruit: £5,400

If a small business then an additional £2,700 can be claimed

If the apprentice completes and passes their course an additional £2,700 can be claimed

TOTAL: £10,800 per apprentice

NOTE: The apprentice has to pass by the 2nd attempt or the completion amount will not be paid

 

There are definite advantages of being below the £3m PAYE threshold:

  1. There is no additional levy to pay
  2. You can claim more per apprentice (£18k compared to £10,800)
  3. There is no limit to the number of apprentices as you have not got a pot that can dry up

 

As this is due to come in next year.  The advice I would give is take on an apprentice this year especially if they are 16-18 as they will still be free.

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Waller Associates Get Healthy!!

Kent Healthy Business Awards

Waller Associates Get Healthy!! Waller Associates Limited are joining the Kent Healthy Business campaign!  The Healthy Business Awards are self-assessment standards to help improve the health of our workforce and are a great way to:

  • Showcase our people, services and skills
  • Build a reputation for commitment to best practice in health, safety and well being
  • Support our business development and tendering activity
  • Support our policies and procedures
  • Show our compliance with laws and regulations

There are three levels of award:

  • Commitment
  • Achievement
  • Excellence

To kick-start this project, we are sending a questionnaire for our staff to complete anonymously and return so that we can assess our workforce and determine the best areas to focus on for our team.

Waller Associates

In 1993 Steve Waller started Waller Building Services after training as a quantity surveyor. Over the next few years the company grew and it was in July, 2000, when the decision was made for Waller Building Services to become a Limited company.  Therefore Waller Associates Limited was set up and Waller Building Services became a trading division within that company. In 2010, an opportunity arose that dove tailed well with the existing company structure.  A long established local Glazing company went into administration which produced the need for a commercial and domestic glazing supplier in the area.  Their commercial glazing manger, Paul Hayward, liked the way we operated as a company and therefore a new division was formed.

Waller Building Services

Clients include schools, local authorities and private customers. Our building services consist of smaller refurbishments through to extensions and new builds.

Waller Glazing Services

Our glazing projects include window, door and also glass repairs. We also carry out complete window and door installations. You can see examples of our glazing works by viewing the case studies on our website.

Building on Trust….

Waller Building and Glazing Services is registered to Fensa, Chas, Constructionline and Safecontractor. We are also approved by Kent County Council. Waller Associates is a company that you can trust. We would be happy to give you a quotation on any size of works. You can See examples of our building works by viewing the case studies on our website.

Contact Waller Building and Glazing

Based in Sittingbourne, Kent, we carry out works throughout as well as the south east of England. If you would like a quotation on any size of project, please contact us. Call 01795 424435. Additionally email mark@wallerservices.com

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Mark-Up Verses Margin

The difference between Mark-Up Verses Margin is frequently misunderstood. It can have serious consequences on your business.  For example:

You buy a good or service for £100 and put 50% mark up on it = £150.00.

You then want to offer a discount and think that if you offer 40% off you will still make a small profit.  WRONG!

40% off £150.00 = £90.00 which means you have made a £10 loss!

This is because the profit margin is 33% (not 50% as that is the mark up)

Waller Associates

In 1993 Steve Waller started Waller Building Services after training as a quantity surveyor. Over the next few years the company grew and it was in July, 2000, when the decision was made for Waller Building Services to become a Limited company.  Therefore Waller Associates Limited was set up and Waller Building Services became a trading division within that company. In 2010, an opportunity arose that dove tailed well with the existing company structure.  A long established local Glazing company went into administration which produced the need for a commercial and domestic glazing supplier in the area.  Their commercial glazing manger, Paul Hayward, liked the way we operated as a company and therefore a new division was formed.

Waller Building Services

Clients include schools, local authorities and private customers. Our building services consist of smaller refurbishments through to extensions and new builds.

Waller Glazing Services

Our glazing projects include window, door and also glass repairs. We also carry out complete window and door installations. You can see examples of our glazing works by viewing the case studies on our website.

Building on Trust….

Waller Building and Glazing Services is registered to Fensa, Chas, Constructionline and Safecontractor. We are also approved by Kent County Council. Waller Associates is a company that you can trust. We would be happy to give you a quotation on any size of works. You can See examples of our building works by viewing the case studies on our website.

Contact Waller Building and Glazing

Based in Sittingbourne, Kent, we carry out works throughout as well as the south east of England. If you would like a quotation on any size of project, please contact us. Call 01795 424435. Additionally email mark@wallerservices.com

 

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What is BIM and how does it effect the building industry?

In a nutshell, BIM stands for “Building Information Modelling”. The government wants to have this fully integrated into all government projects by 2016.

Is this going to happen? The answer is probably not but we need to ensure we understand what it is and be prepared for it.

The problem that building companies are going to face when tendering for government projects is when they are asked things such as “are you BIM level 2 ready?” At this, stage all we need to prove is that we are working towards it and, at the level of contract we go for, it will basically mean the ability to:

  • Receive and send information electronically
  • Produce 3D drawings
  • Have software which integrates on the platform being used for BIM (which could be something as simple as an excel spreadsheet in some circumstances)

In some instances, if we can receive and open tender documents and send them back, we are proving that we can already integrate at a BIM level!

To date, the following link is the best I have found which should explain what BIM actually is:

www.bimaskgroup.org/bim-faqs

 

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