From 1st October 2019, a VAT reverse charge will apply in the UK to supplies of #construction & building sectors, meaning 100,000 to 150,000 businesses will have to change their #accounting systems.

WHAT DOES IT MEAN?
The measure will mean that the customer will be liable to account to HMRC for the VAT in respect of supplies of certain construction services, rather than the supplier (the ‘reverse charge’). The customer will pay the supplier for the services but will pay the VAT element direct to HMRC.
The reverse charge regime uses a wide definition of ‘construction’ which includes the construction, alteration, repair, extension, demolition or dismantling of buildings or structures and infrastructure such as roads, railways and waterways. It also includes painting and decorating.

WHY?
The reverse charge is being introduced in order to remove the opportunity for missing trader fraud within the construction industry. It has previously been introduced for businesses in the tech industry: mobile phones and computer chips.

Please be in touch for further details and how to do not lost in these new regulations which are mandatory: office@prevailaccountancy.co.uk

#ReverseCharge #PrevailAccountancy