Don't fall foul of new HMRC rules

02/02/2010 17:39:29

Article appeared in Guild News, issue 27 Winter 2010

New legislation coming into effect in April means that, from the new financial year, some businesses will have to file their VAT returns online and pay any VAT due electronically.

The new rules will apply firstly to businesses that are VAT registered and have a turnover of more than £100,000 and secondly to all businesses that are newly registering for VAT, whatever their turnover.

It means any builders that fall into these categories will have to make sure they fully understand how to comply with the new legislation.

Anthony Botibol, marketing manager from HBXL says:“This demonstrates how important it is now for builder to be IT-literate. HM Revenue & Customs (HMRC) is moving away from paper returns which means the sector has to act in accordance with what’s required.

“For someone to have to switch form the traditional method of tax returns to submitting them online is quite a big step, especially if they don’t use a computer on a regular basis”As anyone knows, being able to run a successful building business requires keeping a close eye on the accounts and in particular the cash flow and VAT. However, as most builders would readily confess, making sure the books balance and keeping on top of the VAT is probably not their strong subject!”

But according to Anthony there are ways in which builders can better prepare themselves making sure they don’t get an untimely visit form HBRC.

He added “Using accounts software that’s been designed specifically for the build sector will go a long way towards ensuring builders make the transition to online submission seamlessly.”

One such package is called Construction Industry Accounts (CIA), an accounting software package designed to handle the new 2007 CIS Scheme, Invoices & Job Costing, Retentions, Applications (Stage Payments) and Certifications

It also helps builders file their VAT returns quickly and makes electronic payments by using the VAT Online service.

Developed specifically for the building industry this fully integrated software package means that only one entry is needed to update all relevant areas. So when it comes to submitting VAT returns or paying VAT, because everything is available at the click of a button it will make the process infinitely easier.

Anthony added: “Construction Industry Accounts is an absolute godsend for those who are looking to keep a close grip on their accounts, want to know how much they are going to make on a job and want to keep up-to-date on their VAT.

“Anyone wanting to make their lives easier in April needs to start planning now how they are going to ensure they don’t give HMRC a reason to come knocking. It also links directly to HBXL’s EstimatorXpress estimating software so once an estimate has been produced the revenue and profit generated is automatically updated onto CIA.

To find out more about CIA visit www.hbxl.co.uk/accounts

Magazine/Press reviews