HMRC recently announced that it was delaying the Domestic Reverse Charge for Building and Construction Services until 1 March 2021.
The charge, which was due to be introduced on 1 October 2019 but was subsequently postponed until 1 October 2020, is aimed at deterring suppliers who collect VAT from their customers but do not then account for that VAT to HMRC.
The delay, which HMRC put down to the impact of the coronavirus on the construction industry, will be welcomed by businesses that already have enough to contend with in the current economic climate. Those businesses should make the most of the extra time they have been given to prepare for the charge. Asset-based lenders should also take measures to ensure that their clients are ready.
For further information about how you can prepare for the domestic reverse charge, contact partner Chris Willison