Getting ready for the new construction industry reverse charge
Nick McChesney, the Tax Faculty’s VAT and Duties Committee chair, examines the new construction industry reverse charge and how to prepare for it.
Do you or your clients operate in the construction industry as a main contractor, subcontractor, or engage contractors for construction work? If so, you should be assessing the impact of changes in the VAT treatment planned to take effect on 1 October 2019. EDITOR’S NOTE: Since this article was first published, it has been announced that the start date would be deferred by a year to 1 October 2020. HMRC says these will give rise to a “major change to the way VAT is collected in the building and construction industry”. Preparation is needed to ensure the transition to the new rules goes smoothly and businesses can comply.
Affected businesses must: