With the changes to VAT coming into effect from today, joinery companies who quote for window or door contracts with main contractors will need to change how they deal with VAT.
From today onwards, if you are a sub-contractor, your customers will no longer pay you VAT if they are not the end customer. Instead, the business that receives the construction services from you will be required to pay the appropriate VAT directly to HMRC.
You therefore need to ensure that the quotations or invoices that you produce when selling your windows and doors allow you to select a 0% VAT option.
There also needs to be a note on the invoice explaining that the invoice is subject to the VAT reverse charge system and confirming that your customer is required to pay the VAT to HMRC.
However, it is worth noting that this will only affect those businesses who quote as a sub-contractor for a job, with VAT remaining the same for all other quotations.
Complying with VAT legislation
Provided that companies have attempted to comply with the new legislation, HMRC have confirmed that they will apply ‘a light touch’ when dealing with any errors in the first 6 months, with penalties only being applied if you are deemed to be deliberately not accounting for it correctly.
Applying the VAT change in integrate
At EndtoEnd IT we understand the additional challenges that this presents joinery companies and have ensured that integrate has been updated to fully support these changes to quotations and pro-forma invoices produced using our software.
When producing a quotation, both integrateCORE and integrateJS now allow you to input a 0% VAT charge. There is also a check box option allowing you to include the text ‘Reverse Charge: Customer to pay the VAT to HMRC’ by selecting the reverse charge to be ‘yes’.
When this is checked in the quoting system, a note will automatically be added to the quote you are producing, providing you with the tools to allow you to comply with the new HMRC legislation while still producing high quality, professional quotes to send to your customers.
Register for our webinar to find out more
To find out more about the changes to integrateCORE and integrateJS in relation to the VAT reverse charge, register to attend our next free webinar, taking place at 10am on the 5th March, at the link below:
The webinar will also cover our newly upgraded timber cutting list feature, which allows you to quickly and accurately identify and export details of all the timber that needs to be cut for a specific order, ensuring a high level of accuracy and saving you valuable time.
The new feature does all the maths for you, creating a breakdown of the length, width and thickness of each piece of timber required, as well as the type of timber that needs to be used.
The webinar will also look at the integrateCRM (customer relationship management) calendar function, which links to Microsoft 365 and Google Suite calendars to allow you to see what each member of your team is doing at any specific time.
The final subject for this month’s webinar will be about quoting on site and using integrateCORE or integrateJS to capture information and produce quotes for customers on site.
Alternatively, you can book a free demo online.