The New Reverse Charge Update
Announced by HMRC in the Revenue and Customs Brief 10/2019, the new reverse charge, that was due to come into force at the beginning of next month,has been postponed until the 1st October 2020.
HMRC has acknowledged that some clients have already started to work towards the new reverse charge.Some sub-contractors have began to make changes such as applying for monthly VAT Returns to make input tax recovery quicker. This can be reversed on the HMRC website. HMRC are also aware that some invoices have been changed for the new reverse charge and acknowledge errors due to meeting requirements as the date has changed.
This extra time should be used by accountants and their clients to prepare for the change next year, if they have not already started.
HMRC in Revenue and Customs Brief 10/2019:https://www.gov.uk/government/publications/revenue-and-customs-brief-10-2019-domestic-reverse-charge-vat-for-construction-services-delay-in-implementation/revenue-and-customs-brief-10-2019-domestic-reverse-charge-vat-for-construction-services-delay-in-implementation