Just a final reminder that the start-date for the introduction of the Construction Industry Scheme (CIS) VAT Reverse charge has been set back a year to October 1st, 2020.
It was due to begin on October 1st this year, however this changed when HMRC announced the delay due to brexit, along with the fact that a lot of business in the construction sector aren’t quite ready to implement the charge.
The charge is a change in how VAT is handled for certain kinds of construction services in the UK and applies only to transactions between VAT-registered contractors and sub-contractors who are registered for the CIS.
When the reverse charge applies, sub-contractors will require the contractor employing them to handle and pay the VAT directly to HMRC.
As accountants, it’s our job to keep you up-to-date on significant changes in legislation and delays.
We’ll also be here to help closer to the new start-date with any queries – but if you have any questions in the meantime, don’t hesitate to reach out!