CONSTRUCT is part of a coalition of industry trade bodies calling on the Chancellor of the Exchequer, Rishi Sunak MP to withdraw the VAT Reverse Charge which is due to be introduced on 1 March 2021.
The new legislation will restrict the cash flow of companies throughout the construction supply chain. CONSTRUCT will continue to campaign against the introduction of Reverse VAT to support its members.
In the first week of February, the Financial Secretary to the Treasury, Jesse Norman, wrote to the industry confirming that the Government remains committed to introducing Reverse VAT on 1 March 2021. Build UK responded and wrote to the Chancellor and a number of key Ministers, including the new Construction Minister, highlighting that withdrawing Reverse VAT does not require additional funds from the Treasury and will help the industry to create, protect and support employment and apprenticeship opportunities which are central to the Chancellor’s Plan for Jobs. CONSTRUCT members must still prepare for the introduction of Reverse VAT, and Build UK has put together a practical guide to help members do so.
CONSTRUCT is supporting the Build UK #StopReverseVAT campaign, to ensure that the Treasury and HRMC fully understand the detrimental impact Reverse VAT could have on the construction industry’s cashflow, and call on Government to withdraw the new legislation as a matter of urgency. We urge members to get involved in the campaign, so please make sure to follow us on Twitter and LinkedIn.
CONSTRUCT Chairman, Neil Marney has commented:
The industry is struggling to make it through the pandemic, and introducing Reverse VAT on 1 March will push some firms over the edge.
This legislation will hit the cash flow of most of the construction supply chain hard. While order books still look bare, and higher wage costs bite as worker shortages due to Brexit and COVID-19 slow work, Reverse VAT will stifle an already fragile recovery.
CONSTRUCT has created a postcard for the campaign featuring Neil’s statement. Members can get involved by sending us a high-res headshot of your Chief Executive, their name and job title and a quote, which we will share on social media.
By working together, we can demonstrate the significant impact Reverse VAT will have on the industry.
Read Build UK’s press release on the campaign here.