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The government has confirmed that the new reverse charge rules for builders will take effect on 1 March 2021. The aim of the new rules is to reduce missing trader VAT fraud in the construction industry.
They were due to come into force on 1 October 2019, but were postponed for 12 months because the industry was not prepared for the changes. They were delayed by another five months to 1 March 2021 because of the coronavirus crisis. But there will be no further delay. A government spokesperson said: ‘The government is committed to implementing the reverse charge on 1 March.’
The practical impact of the latest rules and HMRC guidance will be covered in an article in Taxation soon.
