As our customers may know, HMRC have implemented new legislations in which businesses under the Construction Industry Scheme, meaning customers receiving services will have to pay VAT due to HMRC instead of paying the supplier.
These new rules were put in place to avoid any potential fraud or inaccuracy with businesses VAT returns and was created to give businesses peace of mind and security when operating them.
Representatives of the Construction Industry have expressed concerns about businesses registered for VAT that are in the construction sector are not prepared for the upcoming VAT domestic reverse charge for building and construction on 1st October 2019.
Therefore, HMRC have delayed the changes for an additional 12 months, bringing the new reverse charge VAT deadline to the 1st October 2020.
Please visit the HMRC website for more information.