HMRC announce delay to Domestic Reverse Charge VAT for Construction Services Category: Property & Construction - Posted On: Sep 9 2019 Following on from our previous article regarding the Domestic Reverse Charge VAT (DRC) for Construction Services, HMRC have announced a delay to the implementation for 12 months. The DRC was due to come into force from 1 October 2019, but after meeting with a coalition of construction organisations, led by the Federation of Master Builders (FMB), it has been agreed that it would be postponed until 1 October 2020. To explain the delay, HMRC have published Revenue and Customs Brief 10 (2019) with further information. The delay will be welcomed by many as a recent survey by the FMB indicated that 69% of construction businesses had not heard about the new rules and of those who had, more than two-thirds (67%) had not fully prepared for the changes. Businesses who have already changed their invoices to meet the original implementations, and cannot easily change them back in time, will be supported by HMRC who will take into account the fact that the implementation date has changed. Although businesses now have an additional year to prepare, HMRC has vowed to use this time to increase awareness and a robust compliance strategy. If you would like to discuss the Domestic Reverse Charge, and how the delay will affect you, please email our EQ Property & Construction team at info@eqaccountants.co.uk or contact one of our offices. Alternatively, if you would like to discuss any VAT issues affecting your business, please email our EQ Taxperts. All News View the latest news stories from all of our sectors. View All News News by category View the latest news stories from a specific sector. COVID-19 EQ News People Experienced Professional Graduate Intern RGU Placement School & College Leaver Services Audit & Reporting Corporate Finance EQ Accounting Bookkeeping Cloud Accounting Management Accounts Payroll Taxation International Tax Making Tax Digital Personal Tax Specialisms Agriculture Charities Engineering & Manufacturing Healthcare Leisure Food & Drink Professions Property & Construction Technology
HMRC announce delay to Domestic Reverse Charge VAT for Construction Services Category: Property & Construction - Posted On: Sep 9 2019 Following on from our previous article regarding the Domestic Reverse Charge VAT (DRC) for Construction Services, HMRC have announced a delay to the implementation for 12 months. The DRC was due to come into force from 1 October 2019, but after meeting with a coalition of construction organisations, led by the Federation of Master Builders (FMB), it has been agreed that it would be postponed until 1 October 2020. To explain the delay, HMRC have published Revenue and Customs Brief 10 (2019) with further information. The delay will be welcomed by many as a recent survey by the FMB indicated that 69% of construction businesses had not heard about the new rules and of those who had, more than two-thirds (67%) had not fully prepared for the changes. Businesses who have already changed their invoices to meet the original implementations, and cannot easily change them back in time, will be supported by HMRC who will take into account the fact that the implementation date has changed. Although businesses now have an additional year to prepare, HMRC has vowed to use this time to increase awareness and a robust compliance strategy. If you would like to discuss the Domestic Reverse Charge, and how the delay will affect you, please email our EQ Property & Construction team at info@eqaccountants.co.uk or contact one of our offices. Alternatively, if you would like to discuss any VAT issues affecting your business, please email our EQ Taxperts. All News View the latest news stories from all of our sectors. View All News News by category View the latest news stories from a specific sector. COVID-19 EQ News People Experienced Professional Graduate Intern RGU Placement School & College Leaver Services Audit & Reporting Corporate Finance EQ Accounting Bookkeeping Cloud Accounting Management Accounts Payroll Taxation International Tax Making Tax Digital Personal Tax Specialisms Agriculture Charities Engineering & Manufacturing Healthcare Leisure Food & Drink Professions Property & Construction Technology