09 September
By Chris Gumbley
Categories: Government/Business/HMRC/Industry News/Taxation

URGENT NEWS: VAT In Construction Industry changes deferred until 2020

URGENT NEWS: VAT In Construction Industry changes deferred until 2020


HMRC have announced that the changes to the way in which businesses in the construction industry account for VAT will be delayed until 1 October 2020.

The changes, which effectively pass on the responsibility for paying VAT on certain services to the customer, from the supplier, were due to be implemented from 1 October this year.  However, HMRC have deferred implementation for a year – saying that this will give businesses more time to prepare, and avoiding the changes coinciding with Brexit.

Whilst the deferral is likely to be welcomed by many businesses, it is frustrating that HMRC have made such an announcement only 3 weeks before the changes were due to be implemented.  And some businesses may already have opted to move to monthly VAT Returns because of the proposed changes.  HMRC say that this can be reversed via their website.

If you have any concerns following this announcement, need assistance or would like further clarification, please do not hesitate to get in touch with our team who will be more than happy to help.