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Detail of outcome
This document summarises the responses to the consultation and the government’s response, which is to introduce a VAT reverse charge for construction services with effect from 1 October 2019 and to use HMRC’s increased compliance activities to address the fraud identified in the Construction Industry Scheme. It sets out that:
- HMRC will publish draft legislation as part of a technical consultation in spring 2018
- finalised legislation will be published along with guidance by end September 2018
- legislation will be laid after 1 April 2019
HMRC will continue to engage with key stakeholders and respondents who have offered to help.
Organised fraud in labour provision within the construction sector presents a significant risk to the public revenue.
This 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.