top of page

UK Construction services: VAT – domestic reverse charge rules deferral until 1 March 2021

Subcontractor? Contractor? Work in construction? Registered for VAT? CIS?


Yesterday a further deferral by 5 months was announced on the introduction of the domestic reverse charge for building and construction services.  The new rules were due to come into force on 1 October 2020 (already deferred from 1 October 2019) but have been deferred again until 1 March 2021.


These rules apply to UK construction services provided by subcontractors to contractors within the CIS scheme.  Under the new rules a domestic reverse charge means the contractor who receives supplies of construction services from the subcontractor must account for the VAT due on these supplies on their VAT return, rather than on the subcontractor’s VAT return. 


HMRC have said, “To help these businesses overcome the effects that the coronavirus pandemic has had on them and give them more time to prepare, the introduction of the reverse charge has been delayed for a period of 5 months until 1 March 2021.”

2 views0 comments

Recent Posts

See All

Tax Adviser Vacancy

#FarrellAndFarrell #crossbordertaxadvisors #crossborder #taxadvisors #uktaxadvisors #roitaxadvisors #accountantcountydown #accountantnearme #newryandmourne #qualifiedtaxadviser #wearehiring

UK: Interest rates will remain unchanged

The Bank of England has today confirmed that interest rates will remain unchanged at 5.25% as expected, despite a decrease in inflation.  The decision marks its fifth pause in a row, with the Monetary

EDIT: HMRC U-turn on plans to cut access to helplines

HMRC have just announced that further to feedback, they are now halting plans to restrict access to the self-assessment, VAT and PAYE helplines as announced only yesterday while they engage with stake

Comments


bottom of page