National Federation of Builders calls for Reverse Charge VAT to be delayed until April 2020.
The National Federation of Builders (NFB) has written to Sajid Javid MP, the Chancellor of the Exchequer, asking for the 1 October 2019 introduction of domestic reverse charge VAT to be delayed until April 2020.
Reverse charge VAT means that the customer receiving the service will have to pay the VAT to HMRC instead of paying the supplier. The reverse charge applies through the supply chain where payments are required to be reported through the Construction Industry Scheme.
The NFB, together with other trade federations, has highlighted the effect the change will have on cashflow and administration costs for an industry already facing increased material and labour costs.
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Richard Beresford, Chief Executive of the NFB said: “For an industry facing lighter workloads, increasing pressure on cash flow and an already high rate of insolvency, reverse charge VAT could not have come at a worse time. By delaying the introduction of this measure, the industry will have more time to properly prepare and make their businesses more resilient, and more detailed guidance can be provided to ensure a smooth introduction.”
The NFB is holding a series of Regional Construction Forums around the country in October and November 2019. Leading construction tax expert Liz Bridge will be offering practical advice on how to deal with reverse charge VAT. For more details click here.
