From 1 October 2019 businesses in the building and construction industry will face significant changes to the way they account for VAT. Businesses should act now to prepare for these changes.
VAT registered businesses in the Construction Industry Scheme (CIS) will need to use the reverse charge mechanism to account for VAT. This will mean customers will need to pay VAT on supplies received directly to HM Revenue & Customs rather than to suppliers, which will have a significant impact on cash flow for many businesses. The rules do not apply to services provided to consumers or end-users.
To find out more about how to plan for these changes please contact Knights Lowe on 01284 701300.