Construction Industry VAT changes

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m0n1k3r replied

27 January 2020, 17:17
Originally posted by Ianwoord View Post

Just wondering if anyone knows anything about the construction industry VAT changes that are due to happen on the 01st October? Just wondering whether my work as a drainage contractor could be affected by it? From reading up on it I think there is a possibility it could but not quite sure how to prepare for it, could get my accountant to sort it but would like to know if it's something I can do myself as it would be expensive doing it that way.

Here is a link to the changes - Domestic reverse VAT charge for building and construction services - GOV.UK

It will work very similar to EU VAT - you don't charge VAT, but instead note the buyer's VAT number and have the invoice state "Reverse charge of VAT". The accounting complexity is on the side of the buyer. You would still be able to reclaim VAT on purchases and there might be additional reporting to do to tell HMRC who you have sold to under the domestic reverse charge regime, but it's really not complicated.
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eek replied

23 January 2020, 12:46
Originally posted by Ianwoord View Post

Just wondering if anyone knows anything about the construction industry VAT changes that are due to happen on the 01st October? Just wondering whether my work as a drainage contractor could be affected by it? From reading up on it I think there is a possibility it could but not quite sure how to prepare for it, could get my accountant to sort it but would like to know if it's something I can do myself as it would be expensive doing it that way.

Here is a link to the changes - Domestic reverse VAT charge for building and construction services - GOV.UK

I don't think you will get much advice here as this is a forum for IT contractors not builders.
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Ianwoord started a topic Construction Industry VAT changes

23 January 2020, 10:21
Construction Industry VAT changes

Just wondering if anyone knows anything about the construction industry VAT changes that are due to happen on the 01st October? Just wondering whether my work as a drainage contractor could be affected by it? From reading up on it I think there is a possibility it could but not quite sure how to prepare for it, could get my accountant to sort it but would like to know if it's something I can do myself as it would be expensive doing it that way.

Here is a link to the changes - Domestic reverse VAT charge for building and construction services - GOV.UK
Tags: accountacy, accounting and legal, construction, contract advice, vat