The start-date for the introduction of the Construction Industry Scheme (CIS) VAT Reverse charge has been set back a year to 1 October 2020. 

The change is being made by secondary legislation and HMRC published a policy paper 6 September 2019 explaining that

'the change has been made as industry representatives have raised concerns that some businesses in the construction sector are not ready to implement the VAT domestic reverse charge for building and construction on 1 October 2019.

To help these businesses and give them more time to prepare, the introduction of the reverse charge has been delayed for a period of 12 months until 1 October 2020. This will also avoid the changes coinciding with Brexit.'


Aside from Brexit, many businesses are still dealing with the transition of Making Tax Digital for VAT and there is evidence that some of the leading software suppliers are still not ready for the CIS changes.

Useful guides

Construction Industry Scheme VAT reverse charge: at a glance

Construction Industry Scheme VAT reverse charge subscriber guide

External links

HMRC Business Brief 10 (2019)