Car production reaches the lowest point in nearly 40 years

admin — Thu, 28 Jan 2021 12:33:34 +0000

According to the latest industry figures, the number of vehicles that were made in the UK in 2020 significantly decreased to the lowest total since 1984.
Falling by a third, the number of vehicles built during 2020 was a total of 920,928 – a 29.3 per cent decrease from 2019.
Mike Hawes, Chief of the Society of Motor Manufacturers and Traders, described this dip as a “dreadful year” for the industry and “the worst in a generation”.
This drastic hit was due to the pandemic-enforced workplace and plant closures, combined with a decrease in consumer demand.
However, Hawes is optimistic that the coronavirus vaccine roll-out and the EU trade deal will enable better production in 2021.
Eight in ten UK-produced cars still get shipped overseas. Last year, in 2020, UK vehicle production for export markets decreased by 30.4 per cent and 29.1 per cent respectively.
In 2020, the EU remained the UK’s biggest export destination, despite volumes falling 30.8 per cent to 400,460 units.
During the last month of 2020, output decreased by 2.3 per cent to 71,403 vehicles. Some manufactures, including Honda, were affected by border closures and ongoing component supply issues.
However, with worries surrounding climate change dominating, tackling this has become a priority, which leads experts to believe that car manufacturing needs a new perspective.
Grant Shapps, the UK’s Transport Secretary, states that we need to combat climate change and air pollution by decreasing miles driven – which ultimately means buying and utilising fewer cars, as even electric car tyres and brakes can still cause air pollution.
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Construction industry VAT reverse charge delayed until March 2021

admin — Mon, 08 Jun 2020 14:04:26 +0000

The Government has officially announced that the introduction of the domestic VAT reverse charge for the construction industry has been delayed for 5 months until 1 March 2021 because of the impact of the COVID-19 pandemic on the sector.
The VAT reverse charge was due to be introduced in October 2020 and would see an end to subcontractors receiving VAT payments in most situations.
It is now the second time the scheme has been delayed from its original implementation date which was October 2019.
It has now also been announced that there will be an amendment to the legislation, making it a requirement that if businesses are to be excluded from the reverse charge because they are either intermediary suppliers or end-users, then they must notify their sub-contractors in writing of this status.
HM Revenue & Customs (HMRC) has stated that it needs to bring in the reverse charge to combat ‘missing trader fraud’, in which suppliers charge their customers VAT, and then disappear before paying it to HMRC.
However, under the VAT reverse charge system, only the main contractor will collect VAT from the client to pass on to HMRC, rather than each party in the supply chain paying VAT to HMRC and claiming back their allowance.
The change is expected to have an initial impact on cashflow for subcontractors, who will no longer receive VAT payments from customers when the scheme is introduced in March 2021.

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Car production reaches the lowest point in nearly 40 years

Construction industry VAT reverse charge delayed until March 2021