The government have decided to delay the start of the proposed VAT reverse charge for supplies by sub-contractors in the construction sector.
The reason for the u-turn is the lack of awareness of the change that was originally due to start on 1 October 2019. Many sub-contractors, and some main contractors, were not prepared for the changes on top of getting to grips with Making Tax Digital for VAT and consequently the government have decided to delay the start of the new rules for 12 months.
It has also come to light that some of those sub-contractors using the VAT flat rate scheme would be worse off which will require a review of whether that scheme is still worthwhile for them.
At Beavis Morgan, we work with a number of builders and construction businesses and we understand the unique set of challenges which comes with running a business in this industry.
Our tax experts are readily available to ensure your tax affairs are as efficient as possible to fit your circumstances. In addition, we can look ahead to retirement and inheritance tax planning.
For more information and to discuss your tax affairs in further detail, contact your usual Beavis Morgan Partner.