A fresh look for construction

Neil Warren considers the new reverse charge rules for the construction industry and the practical VAT issues that will be relevant to builders who trade with other builders from 1 March 2021

It will be a case of third time lucky when the new reverse charge rules for the construction industry are finally introduced on 1 March 2021. As many readers will know, previous introduction dates of 1 October 2019 and the same date in 2020 were delayed by HMRC for very good reasons, coronavirus being the reason for the second delay. In this article, I will focus on practical issues about how the rules will work in practice, including the new concept of a ‘5% disregard’. 

Services covered by new rules