CPA Bulletin

www.cpa.uk.net CPA Bulletin > May 2021 35 Any repairs and maintenance are outside the scope of CIS, and therefore the Reverse VAT legislation does not apply. You may wish to refer to CISR14330 guidance at https://www.gov.uk/hmrc-internal-manuals/construction-industry- scheme-reform/cisr14330. To go further, the customer should not be charged any VAT when invoiced for repairs to plant. The following link confirms this - https://www.gov.uk/hmrc- internal-manuals/vat-supply-and-consideration/vatsc06190 With the introduction of the Reverse VAT legislation, will this have any impact on charging the customer for plant this is returned damaged. Should we be charging VAT on the damage? Q&As: 2 As a new member company, does the CPA produce a table for different items of plant which details the daily/ weekly hire rate or is it up to the individual company to set their own rate? As a leading trade association, the CPA cannot suggest a daily or weekly hire rate, as this could be interpretated as organising a ‘Cartel’. A ‘Cartel’ is where, in this instance, an organisation (the CPA) outlines the hire rate its members must comply with when hiring out their plant to their customers. This practice is illegal, and any organisation found guilty of this practice could face heavy penalties. Consequently, you would need to set your own hire rates. I am currently reading through the clauses within the Model Conditions, and I would like to change one clause where the customer does not have to clean the plant when they have finished with it. Am I allowed to amend or alter this or any of the other clauses within the Model Conditions? I am afraid you cannot change any of the clauses within our terms and conditions, as they are all protected under copyright. It is your decision which clause(s) you wish to enforce should your customer fail to comply with. If, for example, the plant is returned dirty, then you do not have to enforce the clause where you will charge the customer should they fail to clean it before it is returned. This point can be outlined in correspondence to your customer prior to the hire commencing. HMRC Flowchart