CHANGES TO VAT THAT YOU NEED TO BE AWARE OF!

What are the new changes in relation to the reverse charges mechanism for construction and building services?

VAT registered business are normally required to charge VAT to their customers and then pay collected VAT monies over to HMR&C. The customer, if VAT registered, would typically recover the VAT in their own VAT return.

HMR&C has identified that the construction and building industry has a higher than normal occurrence of traders who are charging VAT but failing to make the relevant declarations and payments to HMR&C. This has a knock on effect for the customers who are sometimes unable to