Construction wins one-year delay to reverse charge VAT
What are the VAT changes?
For almost 50 years, UK suppliers have accounted for their own VAT. Many small and medium-sized enterprises (SMEs) use VAT payments from customers as a source of working capital before sending the funds to HMRC. It was planned that VAT cash will no longer flow between VAT-registered businesses involved in the construction industry. The UK government is rolling out a reverse charge initiative aimed at tackling fraud totalling millions of pounds per year. This is caused when suppliers or ‘subcontractors’ charge main contractors VAT but ‘disappear’ before passing sums on to HMRC.
Construction wins a one-year delay to reverse charge VAT!
However...
It seems at though as of today this change has been delayed until October 1st 2020 to give the construction companies time to prepare correctly for these changes so there are no unnecessary issues regarding this VAT switch.
The move to put forward a delay follows intense lobbying by the construction industry, which had warned that companies were not ready for what will be a significant change to the management of their business finances as the necessary information had not filtered through in time. This time the construction industry won and the changes will, therefore, be delayed this is good news for those companies and they will hopefully be fully prepared and ready to face the changes in the future.
Interested in being involved with the industry?
If you are interested in the world of construction and think that a career in the sector is good for you, then you are in the right place. Here at Able Skills, we provide outstanding construction training to thousands of candidates. We provide construction courses in all the relevant trades from tiling to bricklaying. So whichever trade you are interested in learning more about, we have got you covered!
If you have no experience whatsoever, say you've just left school or you're planning on completely changes careers, then don't be afraid of starting with a minimal amount of knowledge, we offer introductory courses that will give the basics so that you can feel comfortable in your ability before taking on a more full-time and in-depth course. For example, starting with an Introduction to Bricklaying course and then enrolling onto a Level 2 Bricklaying Diploma...
Here are the construction trades that we offer training in:
- Plastering Courses
- Carpentry Courses
- Bricklaying Courses
- Tiling Courses
- Decorating Courses
- And a range of Multi-Skills Courses
Want some more info?
For more information about us here at Able Skills, and any of the construction courses that we offer or other training, get in contact with us...We are here to help, simply give us a call on 01322 280 202. Alternatively, we have an open policy meaning that if you would like to look around and talk to a representative in person, then feel absolutely free to come into our office any day of the week between the opening hours of 8:30 - 16:30!
K5, Riverside Industrial Estate, Riverside Way, Dartford DA1 5BS
If you are looking for more information about the topic talked about throughout this article, then more information about the VAT changes and the newly imposed delay then see here.