Following lobbying, HMRC has agreed to delay the start of the VAT reverse charge for the construction industry until 1 March 2021 due to the impact of the COVID-19 pandemic on the sector gearing up for this.
Below is a link to the Revenue and Customs Brief with more information. It also states that the requirement for end users or intermediary suppliers to notify sub-contractors that the reverse charge would not apply will become a legal requirement. Previously, it was only guidance. Click here to see the brief.
Download our pdf guides:
VAT and the reverse charge on construction services – How it works
VAT reverse charge on construction services – A guide for developers and owners
VAT reverse charge on construction services – A guide for main contractors and sub contractors
Previous news on the Domestic Reverse Charge https://hillierhopkins.co.uk/insight-posts/are-you-ready-for-the-vat-reverse-charge/