CBI comments on planned changes to the VAT system in the construction sector

Tom Thackray, CBI Infrastructure and Energy Director, said:

“A thriving construction sector remains critical to the strength and growth of the UK economy. But at a time when businesses are making best-guess plans for different Brexit scenarios this autumn, a sweeping change to the construction sector's tax system would do harm to companies all over the country.

“The construction sector includes many difficult-to-reach micro and small businesses, and recent research shows that despite best efforts to communicate the changes, seven out of 10 firms affected are entirely unprepared for the introduction of Domestic Reverse Charge.

“Directly or indirectly, the impact will be felt by construction businesses of every size. Minimising this must be the Government’s priority, and HMRC should consider pausing the implementation of Domestic Reverse Charge to address the industry’s significant concerns.”