5 June 2020
The Treasury have announced that the introduction of the ‘VAT Reverse Charge’ is now going to be delayed for a further five months, to 1st March 2021.
Richard Beresford, chief executive of the National Federation of Builders (NFB), said: “Despite covid-19 dominating their focus, the Government has stayed on top of their brief, listened to the united voice of industry and made the correct decision in delaying VAT reverse charge. Industry is not ready.”
More time, communication and investment is required, if the Government wants construction to be ready for VAT reverse charge. The previous postponement was already pushing the boundaries of deliverable and with covid-19 changing the landscape of business resilience, a more realistic implementation timeframe is required.
Beresford, continued: “NFB members have been able to access expert advice, webinars and guidance on VAT reverse charge but with more than 340,000 construction companies operating in the UK, most companies still do not know what it is, what its impact will be, or how to implement it.”
The NFB joined with colleagues across the sector to call on Government to delay the introduction of reverse charge VAT, in a letter sent to the Chancellor in May.