The property market came to a grinding halt while the UK followed the Government’s lockdown procedures. The move from ‘Stay at Home’ to ‘Stay Alert’ has allowed a sigh of relief as this has meant that the property and construction sector has started to move but how the future looks for the sector is uncertain.
Domestic Reverse Charge
The Domestic Reverse Charge (“DRC”) should be coming into force on 1 October 2020 for the construction industry, however there are rumours that it may be delayed due to COVID-19. A reverse charge is an anti-fraud measure and is designed to ensure that a supplier does not charge VAT and then fails to account for it to HMRC. The introduction of the reverse charge in the construction industry is a result of perceived widespread fraud in this sector.
Navigating around the different taxes can be a difficult task. If you would like to discuss your current situation or find out more information about one of the topics mentioned above, please contact one of our team who will be happy to assist you.