An overhaul of VAT in the construction industry has been pushed back to 2021 due to the impact of the coronavirus pandemic.
Reverse charge VAT, which would put an end to subcontractors receiving VAT payments in most situations, will now be introduced on 1 March 2021. This pushes the scheme back five months from the previous start date of 1 October 2020. It is the second time the new regime has been delayed, having initially been scheduled to come into force last October. The government said the decision to delay had been taken to help “businesses overcome the effects that the coronavirus pandemic has had on them”.