It was fascinating to hear the views of the room which included property developers and construction business owners. John Redwood’s observation was that digital transformation will have a significantly greater impact on business success than a short-term economic impact of the Brexit deal.
If the compliance history is damaged during construction operations then HMRC can revoke gross status which may have a catastrophic impact on cashflow. Maintaining a good compliance history with HMRC is therefore paramount.
Businesses should consider their strategies for a revised compliance environment and model their tax burden based on the corporation tax rules, including the impact of the corporate interest restriction.
The right approach will depend on the nature of your business, the details of the site you’re acquiring, and your plans for its development.
Demand for commercial sites is high, and you’ll need to move fast to snap them up. But you must take time to consult a technical expert on the VAT implications first. Somebody who not only understands the rules, but can interpret what they mean for your business.