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Government Agrees to Delay VAT Change “Chaos”


Posted on: September 10th, 2019 by Austen | | Categories: VAT

Government Agrees to Delay VAT Change “Chaos”


The government has agreed a one-year delay to VAT changes threatening a cash-flow crisis across construction.

More than 150,000 construction companies were facing a 20% drop in cash flow when planned VAT changes came into force next month.

But now HMRC has agreed to delay implementation of the “domestic reverse charge” until October 1 2020.

The postponement follows a lobbying campaign from all sides of the industry warning the charge would cause chaos across construction.

HMRC said it remains committed to introducing the change but conceded businesses need “more time to prepare.”

It added: “This will also avoid the changes coinciding with Brexit.”

P.S Beware, this is only a delay in introduction and will come into force next year so businesses will still need to prepare for the changes. Anyone who needs help in understanding and implementing the new Reverse Charge rules can speak to us at Balance on 01484 685413 or email .

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