National Federation of Builders (NFB) has written to the Chancellor of the Exchequer Sajid Javid to ask for the move to ‘reverse charge VAT’ to be delayed until April 2020.
Together with other trade federations, the NFB has highlighted the effect the change will have on cash flow and administration costs for an industry already facing increased material and labour costs.
The NFB says “that the guidance issued by HMRC was delivered late, is not clear and leaves some questions unanswered.” A delay before introducing the charge would give the industry and government time to properly prepare the industry to understand the changes and update systems.
‘For an industry facing lighter workloads, increasing pressure on cash flow and an already high rate of insolvency, reverse charge VAT could not have come at a worse time,’ said Richard Beresford, chief executive of the NFB.
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