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Level 2

VAT reverse charge for building and construction services

can anyone give me more information regarding this which is effective from 1st oct 2020?  as an electrical company working on various projects for a builder does this new reverse charge apply to us when invoicing the builder ??
2 REPLIES 2
QuickBooks Team

VAT reverse charge for building and construction services

Hi Dawn,

 

We'll be implementing the necessary changes in due course in support of the reverse charge VAT for building and subscription services. We'd advise consulting with an accountant on whether this charge will be applicable to you, and welcome any advice from others in a similar situation with knowledge on this to respond to the thread. 

 

Thanks

Level 6

VAT reverse charge for building and construction services

All you ever wanted to know (but were afraid to ask) about the latest brainwave from your friendly VATman...

https://www.gov.uk/guidance/vat-domestic-reverse-charge-for-building-and-construction-services

 

If your company is registered for VAT & CIS, you should be getting a letter - ours arrived today - with a handy flowchart on the back.

It's similar to this one ... https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/8065...

... but since last year, HMRC has decided to remove Employment Businesses (i.e. labour agencies)  from the scope of the Reverse Charge.

 

Since the whole idea was to combat missing trader VAT fraud & HMRCs published consultation stated that labour-only traders were the most likely to go missing, removing labour-only suppliers from the RC seems nonsensical.