In this LB Talking Points instalment, Our Managing Director Sarah Alexander and our Head of Audit and Assurance Sam Ede, discuss the Domestic Reverse Charge (DRC) for construction services.
Back in 2019 changes to the way the construction industry accounts for VAT were announced. The domestic reverse charge mechanism was originally planned to come into effect on 1 October 2019 but was delayed until 1 October 2020 due to Brexit. This date was further pushed back due to Covid-19 and is now due to be implemented from 1 March 2021.
Here we look at what the DRC is, who it will affect, how it may affect them, and other points to consider before it comes into effect on 1 March.
We also have a detailed blog on the subject if you wish to refer to this: https://LBLink.uk/DRC_blog
Should you have any questions on the subject then please do get in contact with our team. You can call us on 01243 782 423 or email LetsTalk@LewisBrownlee.co.uk and one of our team will be in touch!