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Hudson provides clarity to companies confused about new VAT and IR35 rules

18th March 2021 | Hudson Contract

Companies are reminded of major tax reforms hitting the industry this month and next – the domestic VAT reverse charge and IR35.

Hudson Contract has been helping hundreds of companies to prepare for the changes and ensure they are fully compliant with the new rules so they can get on with running their businesses.

Domestic Reverse Charge
The reverse charge came into force on March 1 and must be used for most supplies of building and construction services.

Ian Anfield, managing director of Hudson Contract, said: “You need to understand whether it applies to any invoices raised on or after that date.

“We know there is still a lot of confusion around the domestic VAT reverse charge so if you have any queries, we are here to help.”

You can read more about Domestic Reverse Charge here.

IR35
New rules for off-payroll working known as IR35 come into effect in just 19 days on April 6.

Mr Anfield said: “IR35 poses a risk if you use limited company subcontractors, agencies or employment businesses.

“We have taken steps to protect companies and their customers against the potential impact of IR35.

“Our clients should ensure they are using version 18 of our contracts as these include comprehensive provisions for the new rules.”

You can watch our webinar on IR35 here.

 

If any companies have any queries about the domestic VAT reverse charge or IR35, they should get in touch with Hudson Contract on 01262 401040. If you are not a client of Hudson we are offering no-obligation consultations.
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