Domestic reserve charge for construction to be delayed
The domestic reserve charge was supposed to come into action on 1 October 2019. However, representatives from the construction industry have raised concerns that some companies are not ready for the changes. Therefore, the government have decided to delay this for 12 months, to give businesses more time to prepare. Moreover, it will mean that these changes will not occur alongside Brexit.
HMRC remains committed to the introduction of the reverse charge. In the next 12 months HMRC will work closely with the construction sector to raise awareness and provide additional guidance and support to make sure all businesses will be ready for the new implementation date, 1 October 2020.
HRMC recognises that some businesses will have already changed their invoices to meet the needs of the reverse charge and cannot easily change them back in time. Where genuine errors have occurred, HMRC will take into account the fact that the implementation date has changed.
Some businesses may have opted for monthly VAT returns ahead of the 1 October 2019 implementation date which they can reverse by using the appropriate stagger option on the HMRC website.
For more information about these changes click here.
How can we help
If your business requires expert advice on how best to prepare for these changes Hawsons Chartered Accountants are here to help. Hawsons has a dedicated team of Construction and VAT accountants in Sheffield, Doncaster, and Northampton.
If you would like to book a free initial meeting with us click here.
If you would like to see more information about our VAT accountants click here.
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