At Indigo Group, we recognise that when difficult VAT questions arise, it’s reassuring to get expert advice. So, we’ve partnered with Independent VAT Specialists, Centurion VAT to offer our Indigo Platform clients access to specialist VAT advice.
The Indigo Platform has a VAT Risk Management module including a range of services to manage project risk. Using this module within the Indigo Platform will allow you to prevent the financial and administrative risks that weakness in VAT management through the supply chain can create, including delays to projects and exposure to financial costs and penalties where VAT has been incorrectly managed.
On the partnership with Indigo Group, Liz Maher OBE, Director at Centurion VAT said “We are delighted to lend our expertise to Indigo in developing a VAT risk management tool for the construction sector.
Construction services and development projects in general are one of the more complex areas of VAT legislation as it brings together potential VAT liability questions on the nature of supplies being made and a range of VAT sensitive clients where mitigating VAT costs will be high on their list.
Moreover, HMRC themselves clearly recognise there are VAT risks across the sector as seen by the recently implemented Domestic Reverse Charge for VAT on Construction services here in the UK.
HMRC’s approach to the sector indicates there is the expectation for businesses to look both ways – up and down their supply chain – to monitor their VAT compliance.
Contractors should have in place tools and risk management strategies to identify any subcontractors where HMRC feels the main contractor ‘knew’ or ‘should have known’ that a VAT risk was being created. Clearly the sector needs to be proactive in managing the VAT risks and this is where the value add from the Indigo Platform really comes in aid of the industry.
Our VAT helpline as part of the VAT Risk Management module on the Indigo Platform enhances the ability to identify risk and decide on the approach needed to avoid challenges from HMRC. It reduces exposure to lost management time and real financial risk, as well as demonstrates a proactive VAT management culture in an organisation.”
Liz Maher OBE
Director at Centurion VAT
A short technical update from Liz Maher focusing on the latest version of the Domestic Reverse Charge brought in on 1 March 2021