11th September 2019

Government delay Domestic Reverse Charge for Construction industry by 12 months

Following our news article dated 15th August, detailing HMRC’s anti-fraud ‘VAT domestic reverse charge’ for construction services, please note that the introduction of this measure has now been delayed by 12 months until 1st October 2020.

HMRC have emphasised that they remain committed to the introduction of the reverse charge. The scheme has been delayed due to concerns raised by industry representatives that some businesses are not ready for planned implementation. Delaying the scheme’s introduction until 2020 should also avoid the changes coinciding with Brexit.

In the intervening year HMRC aim to raise awareness of the changes and provide further guidance to help ensure that impacted businesses will now be ready.