You may or may not have heard that on Friday 6th September HMRC announced that they had made the decision to postpone the planned introduction of the ‘Reverse Charge VAT for Construction services’ by 12 months, meaning the change will not be implemented until 1st October 2020.
Whilst HMRC’s Official statement (below) is using the excuse that businesses weren’t ready. We have a feeling that it’s HMRC who aren’t prepared for the changes…
‘Industry representatives have raised concerns that some businesses in the construction sector are not ready to implement the VAT domestic reverse charge for building and construction on 1 October 2019.
To help these businesses and give them more time to prepare, the introduction of the reverse charge has been delayed for a period of 12 months until 1 October 2020. This will also avoid the changes coinciding with Brexit.’
The full announcement can be found using the link below but in summary, there are no changes to VAT for your business until October 2020. We will, of course, be in touch before then to explain how the changes will impact you but if you have any questions please don’t hesitate to get in touch.