A DECISION to delay the launch of reverse charge VAT  - which will make contractors responsible for handling VAT - has been welcomed by the National Federation of Builders.

The change was due to be implemented on October 1, 2019 but the Government has now agreed to delay it until October 1, 2020.

The NFB, who partnered a coalition of 15 construction organisations to recommend a six-month delay, has welcomed the decision and said it hoped to work with the Government to ensure industry is ready next year.

Richard Beresford, chief executive of the NFB, said: “Contractors and sub-contractors weren’t ready for reverse charge VAT and we are delighted that the Government has listened to our industry campaign to seek a delay.

“The Government has given us double the time we recommended and this will help us work together to set up improved online guidance, hold workshops and make sure the entire industry understands what reverse vat charge means for their business.”

The NFB is holding a series of Regional Construction Forums in October and November 2019. Leading construction tax expert Liz Bridge will be offering practical advice on how to deal with reverse charge VAT.

For details of the nearest forum, go to https://www.builders.org.uk/events/ and book your free place.