VAT Reverse Charge delay is common sense

The Treasury have announced that the introduction of the ‘VAT Reverse Charge’ is now going to be delayed for a further five months, to 1st March 2021.

Richard Beresford, chief executive of the National Federation of Builders (NFB), said: “Despite covid-19 dominating their focus, the Government has stayed on top of their brief, listened to the united voice of industry and made the correct decision in delaying VAT reverse charge. Industry is not ready.”

More time, communication and investment is required, if the Government wants construction to be ready for VAT reverse charge. The previous postponement was already pushing the boundaries of deliverable and with covid-19 changing the landscape of business resilience, a more realistic implementation timeframe is required.

Beresford, continued: “NFB members have been able to access expert advice, webinars and guidance on VAT reverse charge but with more than 340,000 construction companies operating in the UK, most companies still do not know what it is, what its impact will be, or how to implement it.”

The NFB joined with colleagues across the sector to call on Government to delay the introduction of reverse charge VAT, in a letter sent to the Chancellor in May.

National Federation of Builders

The National Federation of Builders is a United Kingdom trade association representing the interests of small and medium-sized building contractors in England and Wales.

You May Also Enjoy

Breaking News

Halifax House Price Index December 2024

House prices in December 2024 were 3.3% higher than the same month a year earlier.   House prices decreased by -0.2% in December Annually, property prices are up +3.3% (vs +4.7% last month) Typical property now costs £297,166 Northern Ireland maintains the strongest UK annual house price growth   Amanda Bryden, Head of Mortgages, Halifax,…
Read More
Home and Living

3 Solutions for Japanese Knotweed

Japanese knotweed is a notoriously invasive species known for its rapid growth, extensive underground rhizomes, and ability to disrupt ecosystems and property foundations. In the UK, including Ireland, its management is both a practical challenge and a legal responsibility. Homeowners and businesses must not only tackle this persistent plant but also adhere to regulations to…
Read More
Breaking News

Housing Insight Report: November 2024

The next few months are likely to prove busy for the sales market, with stock coming to the market and consumers showing they are keen to stay ahead of Stamp Duty threshold changes due in England and Northern Ireland in April 2025. The lettings market remains extremely challenging, with long-running issues regarding an intense lack…
Read More
Breaking News

Westminster Council Embraces the Worst Aspects of NIMBYism

In May 2025, Westminster Council will seek to ban ‘For Sale’ signage across the borough, adding to the growing list of localist powers that are being misused by councils through tacit nods to NIMBYism and the creation of new revenue streams. Misuse of Localism Powers   Abuse of ‘localism’ powers is not uncommon. In 2024,…
Read More
bank of england interest rate
Breaking News

Bank of England Money and Credit – November 2024

Overview These monthly statistics on the amount of, and interest rates on, borrowing and deposits by households and businesses are used by the Bank’s policy committees to understand economic trends and developments in the UK banking system. Key points: Net borrowing of mortgage debt by individuals fell by £1.0 billion, to £2.5 billion in November.…
Read More
bricks rubble
Commercial Agent Talk

Understanding the Importance of Waste Management in Tampa

Tampa, located on the Gulf Coast of Florida, is a vibrant city known for its sunny weather, flourishing tourism, and growing business sectors. With a population that continues to rise, the demand for efficient waste management practices has never been greater. Proper waste handling is critical not only to preserve Tampa’s pristine beaches and nature…
Read More