As a further measure to relieve pressure on business during the coronavirus crisis the introduction of the Domestic Reverse Charge for certain supplies in the construction industry has been deferred.

The changes were due to be introduced on 1 October 2020 and will now be introduced with effect from 1 March 2021.

HMRC has also taken the opportunity to make a change to the scheme.  From 1 March 2021 customers receiving construction services that are within the scheme must notify the suppliers in writing whether they (the customers) are an “end user” or an “intermediary”. HMRC will update the Reverse Charge guidance shortly.

Most construction industry businesses have been preparing for the Reverse Charge for some time and should now revise their plans so that they can issue, and record receipt of, written notifications of end user or intermediary status when the scheme starts.