Stay of execution: What does the delay to the reverse charge VAT regime mean for construction?

shutterstock_1161106384_burn_comp_final

The threat of a 20% cut to the cash flow of 150,000 businesses has receded after a delay, but the danger to firms remains

The good news is that companies who rely on VAT to stay in business can keep charging it on the work they do for main contractors. The bad news is that they will only be able to do so for another year. Reverse-charge VAT, which was going to be introduced next month, will now come into force from October 2020. 

Last Friday’s shock decision by the government has given an unexpected reprieve to construction firms, most of whom were blissfully unaware of the fiscal danger they faced. The level of ignorance of the government’s plans played a part in changing the minds of ministers. But a more compelling factor was the sheer strength of opposition – and unity – from an industry that struggles to present a united front.

Read more…

This is PREMIUM content, available to subscribers only

You are not currently logged in. Subscribers may LOGIN here.

SUBSCRIBE to access this story

Gated access promo

SUBSCRIBE for UNLIMITED access to news and premium content

A subscription will provide access to the latest industry news, expert analysis & comment from industry leaders,  data and research - including our popular annual league tables. You will receive:

  • Print/digital issues delivered to your door/inbox
  • Unlimited access to building.co.uk including our archive
  • Print/digital supplements
  • Newsletters - unlimited access to the stories behind the headlines

Subscribe now 

 

Get access to premium content subscribe today