Real Estate Matters Issue 21
Posted on: December 15th 2021 · read
In this issue we take a look at several tax issues businesses in the construction and real estate sectors should be aware of, including, VAT fraud and labour providers as well as the new Plastic Packaging Tax (PPT). We also consider sustainability in the sector and the tax incentives available to support innovation as well as cyber security, land matters and the latest statistics on the housing market.
In this issue…
VAT fraud and labour providers
Construction businesses are well versed with the Domestic reverse charge and the reasons why it was bought in – to prevent missing trader VAT fraud. However, we know that HMRC continue to actively tackle fraud in the labour provider markets. Employment businesses and labour providers are not covered by the DRC and therefore as VAT is still chargeable on the supply of staff it continues to be a risk area, both to HMRC and to businesses that become embroiled in this issue……
Plastic Packaging Tax – 1 April 2022
From the 1st April 2022, Plastic Packaging Tax (PPT) will be introduced in the UK as part of the Green agenda. By using recycled rather than new plastic within packaging the objective is to increase levels of recycling and collection of plastic waste, diverting it away from landfill, incineration or into the oceans. PPT will apply to plastic packaging manufactured in, or imported into, the UK where the plastic used in its manufacture is less than 30% recycled.
Sustainability in construction
Will your business be pro-active or reactive in dealing with green compliance? 2021 – 2030 will see significant increases in legislation, investor focus and reporting requirements hitting all sectors. There are incentives in place that reward the development of sustainable processes, materials, devices, products and services through new and emerging technology. However, technological development in construction is often overlooked when considering qualification for UK Research and Development (R&D) Tax relief.
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If there are any topics within this issue you would like further information on, please do get in touch.
REM Issue 21 December 2021