Reverse charge Articles

Construction: Reverse VAT charge delayed until 2021

A major change to the way that VAT is paid on building and construction invoices has been delayed again, this time until 1 March 2021.

At the end of May, HMRC said that the domestic reverse charge rules for the construction industry would commence on 1 October 2020. However, a week later, the tax authority confirmed that this would be pushed back by five months, due to the impact of the coronavirus pandemic on the sector.

The Construction Industry’s New VAT Headache
marketing | 13 November 2018
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The Chancellor’s most recent Budget contained new measures to combat VAT avoidance by companies in the UK.

As part of the Treasury’s strategy to combat ‘missing trader’ VAT fraud, contractors in the construction industry will have to grapple with confusing changes to the VAT system that could affect their cashflow.