Government delays VAT changes by a year

By Jordan Marshall2019-09-06T14:53:00

Scheme was meant to start next month

The government has announced it will delay VAT changes which many have said will cripple firms’ cashflows until next year.

In June, the government published guidance about the so-called reverse charge on the way VAT is collected in the building and construction industry.

The changes were due to come into effect on 1 October and would have seen the customer receiving the services having to pay the VAT due to HMRC instead of paying the supplier – meaning companies would no longer receive their 20% VAT payment when they submit their bills.

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