VAT REVERSE CHARGE APPLICATION

[gdrinkald1965]

My husband is a self employed locksmith, a VAT registered Sole Trader.
We don't have an accountant and I act as agent, submit invoices etc, submitting VAT and tax returns online to HMRC.
I am struggling to understand the VAT reverse charge process and whether or not it applies.
HMRC guidance lists professions and services where it does NOT apply but does not mention Locksmith. Can I assume it comes under the classification "installing security systems, including burglar alarms, closed circuit television and public address systems".

I would prefer something more specific as he is not always fitting new locks but could be repairing existing locks.
HMRC tell me it is up to how I interpret THEIR guidance which is really unhelpful.
I obviously want to comply with the law but HMRC won't confirm how tit applies in this situation.

I am now in the position where I have a new contact at an existing customer who is asking me to apply the reverse charge to an invoice as the work wasn't carried out on their own premises. This is true of a lot of our customer, maintenance companies in particular, who employ my husband to carry out work at other premises.
CIS does not apply as he is never working on new properties.
Any guidance would be most appreciated.
Thank you in advance.

 

[DWS]

CIS does not only apply to new properties!
But if CIS does not apply to the work that your husband has invoiced for then neither will the Domestic Reverse Charge.

 

[gdrinkald1965]

CIS does not only apply to new properties!
But if CIS does not apply to the work that your husband has invoiced for then neither will the Domestic Reverse Charge.

 

[gdrinkald1965]

Thank you.

CIS won't apply as he is supplying and fitting and repairing locks to existing properties. Also Locksmiths aren't mentioned in CIS guidance.
They seem to be the invisible trade!

 

[DWS]

Well then as long as he is only fitting locks and not doing anything else that may be within CIS then the DRC can not apply.
On what basis is the client saying you need to apply the DRC?

 

[UK Contractor Accountant]

The installation of locks in isolation on new buildings or on buildings where ‘construction operations’ have been carried out is outside the scope of the Scheme. This also applies to the installation of security doors and grilles, where no alteration or repair to the building is required.

The replacement of locks on a new for old basis is not treated as being within the scope of the Scheme. Where, however, the replacement results in the need for repair or other modification to the door, doorframe or other surrounding surfaces, this is treated as within the Scheme.

 

[UK Contractor Accountant]

CISR14210 - The Scheme: construction operations: locksmiths​