Following the acquisition of CLiP IT by Eque2 in November, we are writing to make you aware of a new postal address to use for all correspondence from now, as follows:
Please ensure all correspondence is addressed as follows:
CLiP IT Solutions Limited
37 Peter Street
All telephone numbers remain unchanged as:
Sales: 01935 434435
Support: 01935 443340
As previously mentioned, it is very much business as usual at CLiP IT, however if you do have any questions or concerns, please do not hesitate to contact a member of the team on the numbers above.
On 6th September 2019, HMRC published a Policy Paper confirming the Domestic Reverse Charge VAT for Construction Services will be delayed for a period of 12 months, meaning the new implementation date will be 1st October 2020.
Construction Industry representatives raised concerns that not all businesses were ready for original start date of 1st October 2019. Therefore, to help these businesses HMRC have agreed to a delay of 12 months. This will also help avoid any changes that Brexit brings about.
For more detailed information, please find the link to the Policy Paper https://www.gov.uk/government/publications/revenue-and-customs-brief-10-2019-domestic-reverse-charge-vat-for-construction-services-delay-in-implementation/revenue-and-customs-brief-10-2019-domestic-reverse-charge-vat-for-construction-services-delay-in-implementation
HMRC will also update the Reverse Charge Guidance found at https://www.gov.uk/guidance/vat-domestic-reverse-charge-for-building-and-construction-services
As from 1st October 2019 if you are working as a subcontractor for a main contractor (who isn't the end user of the work) and they operate within the CIS Scheme the way you charge VAT is changing. Please ensure your software has the ability to deal with this. (our CIA software has been updated to deal with the change).
HMRC have introduced this change to protect themselves from the most common fraud they suffer in the Construction Industry.
HMRC estimates around £100m a year is lost from subcontractors billing main contractors (and being paid) VAT but then "disappear" before paying the VAT to HMRC.
CLiP IT Solutions are pleased to say we have passed HMRC’s checks and the CIA software will be updated to meet all new VAT Making Tax Digital (MTD) requirements as part of the tax year end update.
We are pleased to announce that the CIA (Construction Industry Accounts) Software update for the new making tax digital VAT reporting was passed by HMRC this week ready for the deadline in April 2019.
All customers will receive the update as its released
Week 53 payments may result in an underpayment or overpayment of tax for the year. This is due to HMRC guidelines specifying that a Week 53 payroll must be calculated on a Week1/Month1 basis. Thus giving an additional personal allowance to protect the level of take home pay the employee receives.
The yearly tax allowance is calculated on a 52 week year. i.e. The Tax Code 1150L gives the employee a tax allowance of £11,505 for the 2017/18 tax year spread over 52 weeks, giving a free pay of £221.34 per week. For a week 53 calculation, the employee is given an additional free pay allowance of £221.34, therefore increasing the yearly allowance to £11,731.02. The difference is what HMRC will be requesting.
An overpayment will occur if within the 52 week year, an employee has not reached the £11,505.
Please remember the HMRC servers are changing on the 14th February. If you still haven’t run the update please do. After the 14th you need the new server address to upload your HMRC returns (PAYE,VAT,CIS)
Remember that from the 6th April 2018 the minimum contributions of both Employees and Employers will change.
- Employer minimum contribution is changing from 1% to 2%
- Employee minimum contribution is changing from 1% to 3%
Next year (6th April 2019) they are changing again
- Employer minimum contribution will change to 3%
- Employee minimum contribution will change to 5%
If you have any questions please contact us.
We will be shut from midday on Friday the 22nd of December until Tuesday 2nd January 2017
We would like to thank all of our customers and wish you all a Merry Christmas and Happy New Year
I have just spoken to a long standing customer who rang about a general enquiry, one thing mentioned in the conversation led me to explain our Credit Control Menu item which is going to be a big help. For the rest of you who are unaware: Under the Sale Menu there is an option “Credit Control” this allows you to choose a customer and then shows all outstanding invoices or applications. You can then select one and add notes ie “14/11/17 Spoke to Mike, said cheque is in the post”. When you then run the Invoices/Applications due report and click the option to include credit control notes you get the history of the notes. It has been on the software for years but not everyone is aware of it.