ACR-news.com: BESA calls to delay VAT changes

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BESA calls to delay VAT changes

The Building Engineering Services Association (BESA) has joined with key industry bodies to collectively represent thousands of construction companies in a letter to the Chancellor of the Exchequer Sajid Javid, calling on the government to delay the proposed introduction to VAT Reverse Charging by six months until April 2020.

BESA argued that the planned October introduction the VAT changes, already expected to increase burden and restrict cash-flow for many businesses, would pose a bigger shock to the industry because the timing would coincide with the UK leaving the EU and a possible ‘no deal’ Brexit.

HMRC plans to introduce VAT Reverse Charging on the majority of construction related services from 01 October 2019. Companies who are VAT registered and Construction Industry Scheme registered will no longer pay VAT to the majority of their subcontractors.

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