Consultation outcome

Fraud on provision of labour in construction sector: consultation on VAT and other policy options

This consultation has concluded

Download the full outcome

Fraud on provision of labour in construction sector: consultation on VAT and other policy options - summary of responses

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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.

Original consultation

Summary

Consultation on policy and legislative options to tackle fraud on the provision of labour in the construction sector.

This consultation ran from
to

Consultation description

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.

Documents

Fraud on provision of labour in construction sector: consultation on VAT and other policy options

This file may not be suitable for users of assistive technology. Request an accessible format.

If you use assistive technology (such as a screen reader) and need a version of this document in a more accessible format, please email different.format@hmrc.gsi.gov.uk. Please tell us what format you need. It will help us if you say what assistive technology you use.

Published 20 March 2017
Last updated 1 December 2017 + show all updates
  1. Published summary of responses
  2. First published.