The government has announced a 12-month delay for implementation of the VAT reverse charge for building and construction services.
Due to come in from 1 October 2019, this measure will now be deferred until 1 October 2020 giving businesses more time to prepare for the change with the government stating that they have listened to the concerns raised by industry representatives. They have confirmed, however, that they still remain committed to introducing the change and that this is just a deferral, rather than abandonment.
This is a welcome announcement as there was growing concern that some businesses were not even aware of the change, let alone ready to start applying the rules. With Brexit on the horizon, along with Making Tax Digital for VAT only just bedding in, it seems a sensible move to give both businesses and HMRC a bit more time to tackle this change.
For further information on any of the points raised above, please contact a member of the Indirect Taxes team.