Wednesday, April 12, 2017


VAT fraud in labour provision in construction sector

The Government have launched a consultation on options for combatting fraud on labour provision in the construction sector. The consultation is likely to affect many BESA Members. We are encouraging Members to take part and have their say.

The consultation will consider a range of policy options to prevent supply chain fraud in the sector, including a VAT reverse charge and changes to the qualifying criteria for gross payment status within the Construction Industry Scheme. The introduction of a VAT reverse charge in construction would mean that you must account for VAT on services you buy from businesses who are based outside the UK.

The consultation relates directly with BESA Members who supply predominantly labour services to those in the construction sector. Click here to view the consultation documents.

We are looking to collate views and respond on behalf of BESA members and are looking to directly feedback on the proposals commenting on which proposals will or won’t work, and which will be difficult and costly to operate in practice.  If you have any comments, questions or concerns please contact Rob Driscoll or Gari Sibanda - please send your feedback before 21 April 2017. 

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