03 September 2019

The VAT rules on construction services are changing from 1 October 2019 for contractors and sub-contractors. A VAT reverse charge is being introduced, which means that VAT will need to be handled and paid in a different way. The new rules mean that the contractor (customer) will have to pay the VAT due instead of the sub-contractor (supplier). The changes are being implemented as a response to missing trader fraud and will prevent losses estimated at around £100m per year.

HMRC published guidance on 7 June 2019 which includes information about how to mitigate any cash-flow impacts. View here.

HMRC will be operating a light touch period during the first six months where they will assist businesses that are trying to comply, but have struggled for genuine reasons. The HMRC Business Payment Support Service are aware that some businesses may require assistance with paying their taxes as a result of the loss in cash flow. Any assistance will depend on the specific circumstances of individual cases, but might include granting businesses more time to pay the tax they owe or arranging an instalment plan.

Traders who have further concerns or questions can contact HMRC via: indirecttax.vatsncfteam@hmrc.gov.uk.   

Latest news filter

  • Category

  • Date (to/from)

Stay up to date with the latest news, business support, funding and events happening locally.









Newsletter sign-up





Data Protection
The Heart of the South West Growth Hub service is funded by the Department for Business, Energy and Industrial Strategy. Plymouth City Council are the Managing Authority on behalf of Heart of the South West Local Enterprise Partnership.
Somerset County Council is the Accountable Body and the Data Controller for the Heart of the South West Growth Hub Service which is delivered by Serco.
Please see Somerset County Council’s Privacy policy for information about how your data is used and stored by visiting Somerset County Councils website: http://www.somerset.gov.uk/accessing-our-information/privacy-policy/
Please note: The Heart of the South West Growth Hub service uses MailChimp as our marketing automation platform. By confirming that you wish to receive our e-newsletter, you acknowledge that the information you provide will be transferred to MailChimp for processing in accordance with their Privacy Policy https://mailchimp.com/legal/privacy/ and Terms https://mailchimp.com/legal/terms/.