Domestic Reverse Charge for VAT Delayed!
The construction industry breathes a sigh of relief ...
POSTED BY HELEN BEAUMONT ON 11/09/2019 @ 8:00AM
It's been hailed as a victory for common sense as the Government has announced a 12-month delay to the introduction of the domestic reverse charge for VAT in the construction industry ...
Now that the domestic reverse charge for VAT has been delayed, the construction industry can breathe a sigh of relief!
copyright: nexusplexus / 123rf
A short briefing document was published on gov.uk where it was announced that due to industry concerns and, of course, Brexit, there would be a delay on its introduction of 12 months, until 1st October, 2020.
"I originally raised my own concerns back in June!"
Apparently, industry representatives (and tax advisors!) had been very vocal in raising concerns that many construction businesses were not ready to implement the changes, so the Government has given them another 12 months to prepare.
HMRC says it is still committed to introducing the domestic reverse charge for VAT into the construction industry and will use the next 12 months to put more resources into identifying perpetrators of VAT-related fraud in the sector. It will also work with business leaders to raise awareness of the charge to help others prepare.
For those businesses who are ready for the charge (and have changed their invoicing and accounting procedures already), HMRC says it will take into account the sudden change in its implementation date.
"Some businesses may have opted for monthly VAT returns ahead of the 1st October 2019 implementation date, which they can reverse by using the appropriate stagger option on the HMRC website", said the statement.
It is reassuring that the Government has listened to the construction industry and I can now advice my own clients who work in the sector that they can take a breath and spend the next 12-months getting ready rather than having to rush into it in the face of other economic challenges.
"Would you like to know more?"
If you'd like to find out more about the domestic reverse charge for VAT in the construction industry then do give me a call on 01908 774323 or click here to ping me an email and let's see how I can help you.
Until next time ...
More about Helen Beaumont ...
Helen brings the personal tax planning experience of the top 20 tax companies to Essendon. Formerly of MacIntyre Hudson (with 45 offices nationwide), Helen worked at Chancery for more than 10 years before joining Essendon as the personal tax specialist.
Tax Planning can make a considerable difference to your tax liability. Helen has specialist knowledge and experience in tax planning and uses every opportunity to minimise your tax bill is utilised. By analysing your investments, income, profit and expenditures, Helen will provide strategic tax planning expertise that could offer significant savings, whilst delivering clear, honest advice and guidance.
When Helen is not at Essendon she spends time with her young son and likes going on long walks with the family dog.
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