On 5 June 2020, HMRC announced a second deferral of the new domestic reverse charge for the construction sector which will now take effect on 1 March 2021 (instead of 1 October 2020 as previously intended).
The legislation will also be amended making it a requirement that, for businesses to be excluded from the reverse charge, they must inform their contractors in writing that they fall under the specific definition of “end users” or “intermediary suppliers”. It remains to be seen how the legislation will be framed and whether it will cause any difficulties in practice.
We commented previously on the new domestic reverse charge here and here.
If you need support or further information, please contact Kevin Hall at Markel Tax on 0333 920 5708.
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