Domestic Reverse Charge VAT - DELAYED
Late last week it was announced by HMRC that the Domestic Reverse Charge VAT due to come into effect on 1st October 2019 has now been delayed for a year until 1st October 2020.
In a short explanation for the decision, HMRC said,
“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 Guild will monitor this closely over the coming weeks and months and will update clients with any relevant updates.
Commenting on the delay, Chris Methley of the Guild said, “Many of our clients will welcome the delay and the headache this was going to cause many of them. We will keep our clients informed of further developments in the usual way.”
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