The implementation of domestic reverse charge for construction services, which has caused much consternation for the construction industry, has been delayed until 1 October 2020.

Industry representatives have raised concerns that some businesses in the construction sector are not ready to implement the VAT domestic reverse charge for building and construction on 1 October 2019.

HMRC remains committed to the introduction of the reverse charge and has already increased compliance resource.  It has put in place a robust compliance strategy for tackling fraud in the construction sector using tried and tested compliance tools.

You can read further information on the intervening year and guidance on the reverse charge here.