West Mids industry key date warning – and it’s not Brexit!

Pictured: Terri Bruce
Terri Bruce

Event to highlight major construction changes

Construction companies across the West Midlands are being urged to be ready for a key date in October – and it’s got nothing to do with Brexit.

While the October 31 deadline for leaving the EU is dominating the national business agenda, changes to VAT that will affect companies which purchase or supply construction-related services come into force on October 1.

Accountants and business advisors BDO are holding a joint workshop with law firm Harrison Clark Rickerbys, to help firms understand the changes they need to make as a result of the new Domestic Reverse Charge.

The event, at BDO’s office in Snowhill, Birmingham on Friday, September 13 from 8.30am until 10.30am, will also identify any potential issues brought about by the reverse charge.

Delegates will hear from Terri Bruce, Associate Director at BDO; Lee Causer, Business Restructuring Partner at BDO; and Keith Blizzard, Partner at Harrison Clark Rickerbys.

BDO has also issued guidance on which businesses will be affected and the actions they may need to take.

Terri Bruce said: “The national agenda is dominated by Brexit but the deadline for the VAT Domestic Reverse Charge is looming large for the construction industry.

“Whilst these changes ostensibly change the way in which VAT is accounted for in the supply chain, they are expected to have a more fundamental impact on the construction industry which could have significant ramifications for the survival of some subcontractors.

“Subcontractors that rely on VAT collected from their customers as working capital until they have to remit it to HMRC are likely to suffer from the loss of cash flow. These businesses and even their customers will need to consider what actions need to be taken in order to avoid problems in the supply chain.

“Our event, in conjunction with Harrison Clark Rickerbys, will offer practical steps that companies can take to ensure they are ready.

“That’s everything from checking that their accountancy software has the correct functionality to cope with the change right through to managing any potential cashflow issues.

“This will be a short, sharp event to cover all of the basics with an opportunity for further support around individual areas that affect each company.”

For more information or to attend the event please go www.bdo.co.uk/en-gb/events/domestic-reverse-charge-vat-for-construction-services-in-2019