HMRC Delays the Domestic Reverse Charge

Glenn Savill, Aston Shaw

HMRC have wisely decided to delay the introduction of the much maligned Domestic Reverse Charge.

The DRC, that was due to have a major impact on the way VAT is collected and reported within the building and construction industry from 1st October 2019, has now been postponed by twelve months.

With the uncertainty of Brexit looming and as many as two thirds of businesses within the industry not even aware of the DRC, the delay represents a victory for common sense with many industry representatives having long called for the new legislation to be postponed due to a lack of effective communication from the Revenue.

HMRC claim that they are still committed to the introduction of the DRC, which now comes into effect from 1st October 2020, stating that it will "work closely with the sector to raise awareness and provide additional guidance and support to make sure all businesses will be ready for the new implementation date."

Despite the industry breathing a collective sigh of relief with the announcement, some businesses will have already spent time and money preparing for the changes, leading no doubt to frustration at the decision that has been made at the eleventh hour.

For more information on the DRC, including news of the delay that was announced last week, visit


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