Construction Industry- VAT reverse charges delayed

Good news for many building contractors last week – the VAT reverse charge which was going to be introduced from next month, and would have meant many businesses in the building industry having to change their systems and check the status of their customers and suppliers, has been put back a year and so will not now start until 1 October 2020.

The reason given for this is that HMRC have been persuaded that businesses need more time to make the necessary adaptations, which is a welcome attitude for them to take. Of course many businesses will have taken the new rules on board and prepared for the new regime – this has not been time wasted, but they will now need to put the changes on hold until next year.

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Author: Peter Hedgethorne, Director, Plus Accounting

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