The VAT reverse scheme has been delayed by twelve months to 1st October 2020. The news has been broadly welcomed by the construction industry as many were not adequately prepared for the October 2019 implementation date.
There were concerns that the change would have a significant impact on the construction industry and in this instance lobbying of the government by industry leaders, trade bodies and businesses has been successful in at least delaying the change.
At a time when business and industry are facing uncertainty over Brexit, the construction sector in particular is suffering as the uncertainty impacts on decision making and exacerbates the skills shortages.
The introduction of the scheme to the construction industry may have been delayed, but according to HMRC this is to give businesses more time to prepare. Those who had started to prepare in order to be ready for October 2019 may be feeling frustrated that they have invested time and energy in getting ready, however this time next year they will no doubt be in a stronger position to manage the change. If you haven’t already started to plan for the change there is more information is available here.
