Construction reverse charge

22 April 2020

Liaison Financial on the reverse charge changes

In September 2019 HMRC announced that the implementation of the reverse charge will be deferred from 1 October 2019 to 1 October 2020. As the result of COVID-19 a further deferment cannot be ruled out given the Government’s desire to assist businesses and all VAT registered entities at this time. There has been no announcement of a delay so far, and we will advise you of any developments.

Does the reverse charge changes impact end-users?

The changes do not apply to end-users of construction services and as such, we consider that its introduction will have had limited impact on the NHS sector.  However, end users will still have to act in notifying contractors of their end-user status.

What do I need to do right now?

As the proposed implementation date is some way off and may be further delayed, no action is required at this time. We will run webinars on this subject nearer the October implementation date.

Additional information

Further details of the charge can be found below:

Reverse Charge VAT Update

Policy paper: VAT reverse charge for building and construction services

VAT reverse charge for building and construction services guidance note