Deadline extension!

For all those panicking about the upcoming deadline affecting VAT within the construction industry on October 1st 2019, fear not! The deadline has now been extended by a further 12 months to October 1st 2020.

The official line from HMRC is…

“To help these businesses and give them more time to prepare, the introduction of the reverse charge has been delayed for a period of 12 months until 1 October 2020. This will also avoid the changes coinciding with Brexit”

For more information on the extension visit…

https://www.gov.uk/government/publications/revenue-and-customs-brief-10-2019-domestic-reverse-charge-vat-for-construction-services-delay-in-implementation/revenue-and-customs-brief-10-2019-domestic-reverse-charge-vat-for-construction-services-delay-in-implementation

The changes were intended to place responsibility for VAT with the UK customer who received supplies of construction services as opposed to the UK supplier. For more information please see

https://360accounting.co.uk/changes-to-vat-in-the-construction-industry/

What to do next?

Be prepared for October 1st 2020. The changes are scheduled to come into effect in 12 months time. For those businesses who have been struggling to make the 2019 deadline you have been granted a reprieve, but failure to act could turn your reprieval into a stay of execution.