VAT: Construction industry reverse charge
HMRC have announced that the introduction of the 'construction industry reverse charge' has been deferred for 1 year, to 1 October 2020.
This delay has been welcomed by the majority of both Accountants and their effected clients, and gives a stay of execution for all those not prepared for the changes in VAT. That said, for those whom have invested time and resources into being prepared, could be forgiven for feeling a little frustrated at just how late this announcement has come.
Click the link to view HMRC's 'Revenue & Customs Brief 10(2019)'
HMRC recognises that many clients will already have taken the necessary steps towards the new reverse charge. Where monthly VAT returns have been applied for to make input tax recovery quicker for sub-contractors, this can be reversed on the HMRC website. Invoices that have been changed to meet the new requirements, which lead to genuine errors; HMRC will take into account that the implementation date has changed.
This extra time should be used by accountants, clients and software providers alike to prepare for the new reverse charge next year (1 October 2020). Trying to get a working demo/beta from our providers has been impossible.
If you have any questions regarding the above, please get in touch:
Adam Fletcher (firstname.lastname@example.org)
Malcolm Fletcher (email@example.com).