Liaison Financial
We wrote to our clients in July to advise that HMRC were introducing reverse charge VAT accounting for the receipt of construction services. This was to be implemented from 1 October 2019 as a means of combatting VAT fraud in the construction sector. The reverse charge did not apply to end-users of construction services and as such, we considered that its introduction would have had limited impact on the NHS sector. HMRC has now announced that the implementation of the reverse charge will be deferred until 1 October 2020. This is as the result of construction industry representations made to the Government following concerns about the implementation timetable.
As a consequence of this delay, no action is required until nearer the October 2020 implementation date. Our webinar planned for 16 September 2019 on this subject has also been cancelled.
Should you have any queries about this change, please contact your Liaison VAT advisor or send us an email here.
