After strenuous representations from the industry and the tax profession HMRC has announced the deferral of the introduction of radical changes to VAT in the construction industry due to take effect on 1st October.

There have been concerns that there was little awareness of the new VAT arrangements within the industry.  With the introduction of Making Tax Digital and the continuing uncertainty over Brexit, there is enough for businesses to deal with at present and so a delay in introducing the Domestic Reverse Charge is very welcome.

The Domestic Reverse Charge in the construction industry is now due to take effect on 1st October 2020.