26 Feb 2021

The new reverse charge for the construction industry

The new reverse charge for the construction industry

The domestic reverse charge is a major change to the way VAT is collected in the building and construction industry and will affect both suppliers and customers that are both VAT and CIS registered.

The changes come into effect on 1 March 2021 and mean the supplier will no longer charge VAT on its specified supplies. The customer receiving the supplies will be responsible for accounting for and paying any VAT due to HMRC.

See our detailed guidance on the new reverse charge here.

We have also produced answers to our FAQ’s on the matter here.

 

Get in touch

Related insights

A group of office workers laugh as they have a discussion around a boardroom table.

Welcome changes to the Section 690 Direction process

8 November 2024

Read
A male and female co-worker sit in an office looking at a computer tablet.

Autumn Budget 2024: Making tax digital for ITSA

8 November 2024

Read

Update for the rural sector

8 November 2024

Read

ESG reporting

7 November 2024

Read
Headshot John Endacott.

Budget burden falls on business owners – but will it deliver growth?

30 October 2024

Read
An aerial view of The Houses of Parliament in London.

Carried interest and non-domiciled taxation

30 October 2024

Read

Changes to capital gains tax (CGT) and inheritance tax (IHT)

30 October 2024

Read

VAT on private school fees – Budget update

30 October 2024

Read
People walking along bridge towards Big Ben in London

National insurance and living wage increases pile pressure on employers

30 October 2024

Read
Cottage on sand dunes

Stamp duty land tax Autumn Budget update

30 October 2024

Read
A close-up of two colleagues' hands showing paperwork with graphs and charts.

Corporate tax roadmap revealed

30 October 2024

Read
A close up picture two hands poised over a laptop with the blurred image of three colleagues stood in the background.

What do the latest figures tell us about the current R&D landscape?

3 October 2024

Read