Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps the Government is taking to support small and medium-sized businesses in the construction industry through the changes required as a result of the implementation of VAT reverse charge.
The Government recognised that the introduction of the reverse charge will have an impact on cashflow for some affected businesses in the construction sector, and provided a long lead in time. The measure has also been delayed twice to allow businesses more time to prepare and also in recognition of the impact of COVID-19. HMRC have published guidance on reducing cash flow impacts and have written to affected businesses on three occasions signposting where to obtain information and outlining the steps they need to take to prepare.
More broadly, the Government has provided a very substantial level of support to business through the various COVID-19 schemes.
All businesses and self-employed people in financial distress and with outstanding tax liabilities may be eligible to receive support with their tax affairs through HMRC's Payment Support service.