On 7 June 2018, HMRC published a consultation seeking comments on a draft HM Treasury order and related documentation for a VAT reverse charge for construction services.
The measures are intended to tackle the estimated £100million in fraud emanating from the construction sector each year. The proposed measures will significantly increase compliance costs for an estimated 150,000 businesses across the UK. The measures will make the customer responsible for reporting the relevant transaction to HMRC.
The final version of the draft order and guidance are to be published prior to October 2018, with the legislation taking effect from 1 October 2019.
Responses to the consultation should be made by 20 July 2018.
The consultation document and draft legislation can be viewed here.
