New HMRC position on Construction Industry and Levy

HMRC this week revised their position on the Construction Industry Training Board (CITB) levy and if it can be deducted for Construction Industry Scheme (CIS) purposes. HMRC now say that: “We can confirm that the CIS applies only to payments made under construction contracts. Where contractually agreed deductions such as insurance charges, amounts equal to the CITB levy or any other training costs are deducted before payment then CIS is only operated on the amount paid after any deduction for materials and VAT.” For VAT the HMRC position is that the subcontractor’s supply for VAT purpose is reduced by the amount of any contractually agreed CITB deduction.

Eamon McNicholas
Tax Barrister, Accountant


http://www.EamonMcNicholas.com

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About Eamon McNicholas

Tax Barrister, Accountant www.EamonMcNicholas.com
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