HMRC have announced the domestic reverse charge (DRC) for construction services will be delayed for a period of 12 months until 1 October 2020.

HMRC recognised that some businesses in the construction sector are not ready to implement the VAT domestic reverse charge for building and construction on 1 October 2019.

Businesses now have 12 months to fully understand and prepare.

Some businesses will already have changed invoicing processes to take into account the original date for reverse charge, HMRC recognise this is not simple to change back, so where genuine errors occur HMRC will take these into account.

Also, where businesses have changed to monthly VAT returns in preparation for DRC, this can be reverted via the HMRC VAT website.

The full announcement and more detail can be found on the Government Website here…