HMRC are urging businesses to look out for the use of mini-umbrella companies (MUCs) to pay contractors supplying their labour via agencies and other intermediaries.
Currently only VAT registered businesses making taxable supplies in excess of the £85,000 VAT registration threshold are mandated to comply with Making Tax Digital rules.
The new “reverse charge” system of VAT accounting affects sub-contractors supplying their services to main contractors in the construction sector.
Value added tax may be one of the least glamorous types of tax, but there have been a few recent announcements that certainly make it a little more interesting.
A restaurateur from Warwickshire has been banned for five years after he underreported the business’s takings to avoid paying the correct tax.