10th September 2019
HMRC have announced that the implementation of the VAT Domestic Reverse Charge for CIS Construction services is to be postponed until 1 October 2020.
What this now means for those in the Construction Industry:
- 12 months to prepare for potential cashflow issues which need to be identified in order to take proactive measures to protect the business
- 12 months to implement a new system of invoicing requirements
- 12 months to adapt the accounting systems for dealing with VAT
- 12 months to notify your subcontractors, contractors and identifying your “end-users”
- 12 months to decide whether monthly VAT return submissions would be better for your business
For notes on the specific Reverse Charge rules please refer to our FACTSHEET.
If you think the Reverse Charge may affect your business, please do not hesitate to contact me or your local Thomas Westcott office.
By Annette Stone, Personal Tax Manager