CIS reverse charge and VAT compliance solutions. Avoid errors with ACG.
Are you struggling to understand the difference between CIS and VAT responsibilities? Do terms like “CIS reverse charge” and “CIS VAT reverse charge” confuse you? You’re not alone — and we’re here to help.
CIS & VAT Compliance – Stay Ahead with Audit Consulting Group
At Audit Consulting Group, we provide comprehensive support for construction companies, subcontractors, and tradespeople navigating the complexities of CIS & VAT compliance. Our goal is simple: to keep you fully compliant, minimise your tax risk, and help you avoid unnecessary penalties or lost income.
Understanding CIS & VAT in the Construction Industry
In the UK construction sector, both the Construction Industry Scheme (CIS) and VAT reverse charge rules apply — often at the same time. This dual compliance can cause confusion, especially when processing invoices or hiring subcontractors.
Here’s how they work together:
- CIS covers tax deductions for subcontractors’ labour.
- VAT reverse charge changes who is responsible for reporting and paying VAT.
Failing to follow these rules accurately can result in HMRC penalties or serious cash flow issues.
What Is CIS Reverse Charge?
The CIS reverse charge refers to a change in how VAT is handled in the construction industry. Introduced by HMRC to combat VAT fraud, it means the customer, not the supplier, is now responsible for accounting for VAT on certain construction services.
This applies to VAT-registered subcontractors and contractors who supply or receive:
- Building or construction services
- Labour for construction work
- Some types of materials (if supplied as part of the service)
What Is CIS VAT Reverse Charge?
The CIS VAT reverse charge is specifically tied to both VAT and the Construction Industry Scheme. Under this rule, if you’re a subcontractor:
- You must NOT charge VAT on your invoices to other VAT-registered contractors.
- Instead, you state that the VAT is subject to the reverse charge.
The contractor then accounts for the VAT on their own VAT return. This means:
- You still get paid, but not the VAT portion.
- Your cash flow changes — no more VAT to collect.
Contractors, on the other hand, must ensure they account for the VAT properly, using the correct tax codes on their accounting software.
Why This Matters — And How We Help
Getting CIS and VAT reverse charge compliance wrong can result in:
- Late filing penalties
- Incorrect tax submissions
- Missed deductions or overpaid taxes
Audit Consulting Group ensures that:
- Your CIS filings are on time and accurate
- You apply the correct VAT treatment to every invoice
- Your accounting system is fully set up for reverse charge rules
- You remain compliant with HMRC at all times
Benefits of Choosing Audit Consulting Group
- End-to-end CIS & VAT compliance management
- Setup and configuration for reverse charge VAT
- Monthly, quarterly, or annual compliance checks
- Real-time support and HMRC correspondence handling
- Construction-specific expertise to avoid common errors
We provide support whether you’re just getting started or trying to fix years of mistakes. Our goal is to give you peace of mind and let you focus on growing your business.
Real Client Case Study – Reverse Charge Made Easy
“We had no idea about the CIS VAT reverse charge and were incorrectly invoicing our contractors. Audit Consulting Group identified the issue, corrected our VAT filings, and trained our staff on how to invoice correctly. Now, we’re compliant and confident — and haven’t had a single issue with HMRC since.” — Premier Build Ltd, Manchester.
Frequently Asked Questions – CIS & VAT Compliance
Q: Who does the VAT reverse charge apply to? It applies to VAT-registered businesses in the construction industry who are also registered under CIS.
Q: What do I write on my invoice under reverse charge rules? You must indicate that VAT is subject to the reverse charge and should not be paid to you.
Q: Do I still need to file VAT returns? Yes — the reverse charge does not exempt you from filing VAT returns. You just don’t collect the VAT on certain invoices.
Q: How do I know if I need to apply reverse charge VAT? It depends on the type of work, the status of your client, and your VAT registration. We can help you assess this.
Q: Can I claim VAT back under reverse charge rules? Yes, you can still reclaim input VAT on your purchases.
Avoid Penalties — Stay Compliant Today
With HMRC tightening controls and monitoring reverse charge compliance closely, now is the time to get it right. Audit Consulting Group offers full support to ensure your business complies with CIS VAT reverse charge requirements.
We’ll review your past VAT and CIS filings, correct any errors, and ensure your invoicing process is 100% accurate moving forward.
Don’t risk penalties or delays in payments. Partner with the experts who understand the construction industry and know HMRC inside and out.
If you’re ready to get compliant, streamline your processes, and avoid HMRC headaches, talk to our team at Audit Consulting Group today. We’re here to support your success.
