HMRC have confirmed that they will delay the implementation of the VAT reverse charge until October 2020. The one year delay has been put in place after “industry representatives raised concerns” about the changes.
The controversial change, announced in June, would have seen the responsibility to pay over VAT, in the construction industry, pass to the customer and not the company who carried out the work. This would mean that companies would not receive the 20% VAT on their invoices.
It was widely felt that the changes would hit an already struggling industry hard and HMRC appear to have listened by delaying this until October 2020.