VAT will only be paid to firms who solely supply labour (employment businesses) and to the merchants and businesses that solely sell building materials, without any fix. The purpose of the change is to combat VAT fraud perpetrated by organised criminals.
BESA has prepared useful resources to prevent businesses getting caught out during the transition.
Debbie Petford, head of legal and commercial services at BESA, said: “The majority of BESA members will be affected. So it’s absolutely vital that they understand these changes and are prepared. We know keeping on top of changes can be challenging for businesses which is why our members benefit from easy access to advice from our legal team. Our members receive regular guidance through monthly tax bulletins which will continue. Members can also take advantage of template letters and invoices we have prepared to ensure their supply chains are proactively informed well before October.”
Ms Petford continued: “This week BESA produced a great webinar on VAT for members that can be accessed in the members’ area of our website. The webinar was well attended and BESA will do another one in September to ensure all our members have the information. Most importantly, the BESA legal team are always on hand to help our members with any queries.”