HMRC Agree to Delay Reverse Charge VAT to 2020

Following intense lobbying from the construction industry, HMRC announced on Friday 6th September their plans to delay the implementation of the new rules until 1st October 2020.

It was predicted that in excess of 150,000 businesses in the sector were facing a 20% drop in cash flow, expected to cause chaos throughout the industry.

HMRC conceded that businesses need more time to prepare, and also added that the postponement would help to avoid the changes coinciding with Brexit.

The news comes as welcome relief to the industry, with the feeling amongst Integrity Software customers that the government has simply not done enough to raise awareness of the changes.

Sophie Hurst, Managing Director of Integrity Software said: "The industry will be breathing a sigh of relief at the news that the new Reverse Charge has been pushed back at the eleventh hour, but we're pleased that our software is ready to go when the changes are finally introduced next October.

"We pride ourselves on keeping on top of all legislative changes and ensure our software is always updated and ready in plenty of time, something that definitely sets us apart from other construction accounting & job costing software on the market.

"We feel that we have really led the charge in educating customers and the wider market on the changes this year, and we will continue to do this over the next year until the implementation date."

Despite the introduction of the new legislation being pushed back, we would still urge construction businesses to get up to speed on the Reverse Charge now, and we have several resources to help with this.

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