Changes to VAT on Construction
New legislation from HMRC will come into force on:
1ST OCTOBER 2019
Please speak to us to clarify how the Construction Services Domestic Reverse Charge affects you. As ever, we are highlighting this now in order for our clients to prepare for the changes, which may impact cash flow and your accounting software.
The measure will introduce a VAT reverse charge on certain building and construction services. The measure will, for certain supplies of construction services (‘specified services’), mean that the customer will be liable to account to HMRC for the VAT in respect of those purchases rather than the supplier (the ‘reverse charge’).
HMRC states that businesses involved in buying and selling construction services are likely to be affected. The charge does not apply to zero-rated supplies of construction services.
We are planning ahead and ready to answer any questions you may have. Call us on 01642 606003.
Further reading can be found here (or go to the HMRC website here).