BESA urges members to prepare for VAT changes - The BESA
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Thursday, July 11, 2019

BESA urges members to prepare for VAT changes

 

The Building Engineering Services Association (BESA) has urged businesses to prepare for changes to way VAT is charged, due to start in October, following recent reports from that 150,000 construction firms could be affected.

From 1 October HMRC will introduce VAT Reverse Charging on the majority of construction related services. Companies who are VAT registered and Construction Industry Scheme registered will no longer pay VAT to the majority of their subcontractors.

VAT will only be paid to firms who supply only labour (employment businesses) and to the merchants and businesses that sell building materials only without any fix. The purpose of the change is to combat VAT fraud perpetrated by organised crime gangs.

BESA has prepared useful resources to prevent businesses getting caught out during the transition.  

Head of Legal and Commercial Services at BESA, Debbie Petford said: ‘The majority of BESA members will be affected. So it’s absolutely vital that they understand these changes and are prepared’.

‘We know keeping on top of changes can be challenging for businesses which is why our members benefit from easy access to advice from our legal team,’ said Ms Petford.

‘Our membership receive regular guidance through monthly tax bulletins which will continue.’

‘Members can also take advantage of template letters and invoices we have prepared to ensure their supply chains are proactively informed well before October.’

‘This week BESA produced a great webinar on VAT for members that can be accessed in the members’ area of our website. The webinar was well attended and BESA will do another one in September to ensure all our members have the information.’

‘Most importantly, the BESA legal team are always on hand to help our members with any queries.’

BESA members can access the guidance online here and the webinar here

 

ENDS 

 

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