Are you involved in the construction Industry?
Are you VAT registered?
Do you use VAT registered subcontractors or work for VAT registered contractors?
If your answer to all three questions above is yes, HMRC’s introduction of the Domestic Reverse Charge (DRC) from 1 October 2019 will affect you. The DRC is being imposed by HMRC to cut down on VAT fraud and will affect how you pay other VAT registered businesses in the construction industry and how they pay you.
Basically, VAT registered subcontractors will not charge VAT on their invoices to VAT registered contractors from 1 October 2019. Instead, the DRC will come into force and contractors will ‘Reverse Charge’ VAT on their VAT Returns. This will result in contractors charging themselves VAT and claiming it back on the same VAT Return.
Andy Hagues will be holding a seminar at 12pm on Monday 23rd September 2019 at the Willis Cooper office in which I will talk through the new scheme. It is expected to last around 30 minutes and snacks will be provided. If you would like to attend, please contact the office to book your place on 01773 881045 or email Julie on Julie@williscooper.com so that we have an idea of numbers.