Changes to VAT in the Construction Industry
This seminar will focus on two topical areas of tax for businesses in the construction industry.
There is a big change coming in the way VAT will operate for many businesses. VAT can be complex, particularly in connection with land and property. We will first remind ourselves of the basic rules on VAT liability for construction services. We will then look at the new “reverse charge” regulations coming into force on 1 October 2019 – how these will operate in practice, and the impact they will have.
Our R&D specialist tax partner, Layla Martin, will explore why the construction industry is uniquely suited to claiming the generous Research and Development tax relief. In 2017 the construction industry contributed £113bn to the UK economy, 6% of the total. Innovation is a part of day-to-day life in the construction industry, so the recent statistics showing that less than 2.5% of all R&D tax credits received by HMRC are surprising. The industry is overlooking a golden opportunity and is missing out on millions of pounds of R&D tax relief every year.