[02.02.21]
In August 2019 we provided detailed information on the Construction Industry Domestic Reverse Charge Scheme which then was due for implementation in October 2019. Since then the Government has moved the implementation date twice. The current implementation date is 1st March 2021.
Over the last few months a number of construction industry trade associations have lobbied the Government to again delay the implementation of the Domestic Reverse Charge Scheme. This includes: Federation of Master Builders, Build UK, the Civil Engineering Contractors Association and the National Federation of Builders. They have argued that the Scheme will particularly affect smaller businesses, as they will need to undertake additional admin and they will not receive VAT payments which they may currently be using as working capital before remitting to HMRC.
In response to the lobbying, a Government spokesperson has said that the Government is committed to implementing this Scheme on 1st March 2021. Therefore we would urge all clients affected by this scheme, to ensure they are ready for 1st March. Read more about the Scheme here.
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