Specialist lender Oblix Capital has welcomed HMRC’s decision to delay implementation of the VAT domestic reverse charge for building and construction.
The proposed changes will require the contractor to account for the VAT due on building materials and services, rather than the subcontractor. HMRC announced in September that it would delay the change until 1 October 2020, citing concerns raised by industry representatives that some construction companies were not prepared.
Richard Payne, pictured, Director of Development at Oblix Capital, said:
“The decision to delay was good news for the construction industry and a victory for common sense. With uncertainty already affecting the industry, it’s to the HMRC’s credit that they have allowed businesses more time to prepare.”