Reverse charge rules for the construction industry reminder

Two years pass very quickly. It seems only five minutes ago when accountants and finance directors were jumping up and down with as much excitement as a pensioner winning a leg of lamb in a meat raffle about the potential horrors of the new reverse charge rules that took effect on 1 March 2021 for many supplies of construction services. But the legislation was introduced – despite the protests – and in my opinion has worked very well. I have received very few queries from accountants over the past two years and most people recognise the importance of the anti-fraud motives of the new procedures. Hurrah!

I saw the two-year anniversary as a good opportunity to do a thorough re-read of HMRC’s technical guide to check my own understanding of the rules especially as there have been some important updates since March 2021. I will share some...