The Federation of Master Builders (FMB) has jointly written to the Chancellor of the Exchequer, along with 15 other leading construction organisations, to request a delay to the introduction of reverse charge VAT. This policy is due to come into effect in October 2020 and should be delayed by at least one year.
Brian Berry, Chief Executive of the FMB, said: “The Government should delay reverse charge VAT to protect smaller businesses in the construction supply chain. The coronavirus has impacted on revenue and enquiries meaning local builders are having to rebalance the books. That reverse charge VAT will withdraw the flow of VAT money between these firms will further impact on cashflow, risking sending some firms to the wall. Delaying reverse charge VAT will aid economic recovery across the construction industry.”
