{"id":89055,"date":"2021-02-16T10:48:48","date_gmt":"2021-02-16T10:48:48","guid":{"rendered":"https:\/\/www.pbctoday.co.uk\/news\/?p=89055"},"modified":"2021-02-16T10:48:48","modified_gmt":"2021-02-16T10:48:48","slug":"vat-policy-cashflow-issues-fmb","status":"publish","type":"post","link":"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/vat-policy-cashflow-issues-fmb\/89055\/","title":{"rendered":"2 in 3 builders say VAT policy will lead to cashflow issues, warns FMB"},"content":{"rendered":"<h2>The government must scrap new tax policy \u2018reverse charge VAT\u2019 to show they are listening to builders and protecting jobs, according to the <a href=\"https:\/\/www.fmb.org.uk\/\" target=\"_blank\" rel=\"noopener noreferrer\">Federation of Master Builders<\/a> (FMB)<\/h2>\n<p>New data from the FMB has found that 66% of builders either anticipate that <a href=\"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/vat-domestic-reverse-charge\/60110\/\" target=\"_blank\" rel=\"noopener noreferrer\">reverse charge VAT<\/a> will have a \u2018moderate or significant\u2019 impact on their firm\u2019s cashflow, are still unclear on the details of this complicated policy or have never even heard of it.<\/p>\n<p>When asked what the impact of reverse charge VAT will be on cashflow, builders said:<\/p>\n<ul>\n<li>Moderate or significant impact \u2013 37%<\/li>\n<li>Minor or no impact \u2013 34%<\/li>\n<li>I don\u2019t know what the impact will be \u2013 23%<\/li>\n<li>I don\u2019t know what reverse charge VAT is \u2013 6%<\/li>\n<\/ul>\n<h3>A &#8216;damaging policy being introduced&#8217;<\/h3>\n<p>Brian Berry, chief executive of the Federation of Master Builders, said: \u201cReverse charge VAT is a damaging policy being introduced at the worst possible time for builders.<\/p>\n<p>\u201cBy removing the flow of VAT money between businesses in the <a href=\"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/winter-supply-chain\/83896\/\" target=\"_blank\" rel=\"noopener noreferrer\">construction supply chain<\/a>, 4 in 10 builders say this will have a \u2018significant or moderate\u2019 impact on their cashflow.<\/p>\n<p>\u201cThe construction industry stands ready to tackle tax fraud, but <a href=\"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/vat-reverse-charge-delay\/65216\/\" target=\"_blank\" rel=\"noopener noreferrer\">reverse charge VAT<\/a> harms all builders for the actions of a minority of unscrupulous firms.<\/p>\n<p>\u201cReverse charge VAT is a complicated policy that it takes time to prepare for. Time is a luxury most builders have not had over the past year, as demonstrated by the 29% of my members who are either unaware of the policy or unsure of its impact.<\/p>\n<p>\u201cThe government is placing a strong emphasis on <a href=\"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/construction-second-lockdown\/84681\/\" target=\"_blank\" rel=\"noopener noreferrer\">keeping construction sites open<\/a> and protecting jobs. If the industry is to continue supporting recovery, the government must listen to builders and scrap reverse charge VAT.\u201d<\/p>\n<p>Deepak Singh Udassi, director of City Lofts London, commented: \u201cIt is important to tackle fraud in the construction supply chain. Due to the little to no regulation in the industry, rogue traders are able to operate freely, to the detriment of consumers and reputable businesses like mine and other FMB members.<\/p>\n<p>\u201cHowever, reverse charge VAT is not the solution. A mandatory licensing scheme for UK construction businesses would tackle the root cause of this problem by introducing a minimum barrier to entry.<\/p>\n<p>\u201cLicensing would also drive-up standards, professionalism and the reputation of the industry, which is clearly not well regarded across Whitehall as demonstrated by this punitive policy.\u201d<\/p>\n<div class=\"mk-custom-module-container\">\n<\/div>","protected":false},"excerpt":{"rendered":"<p>The Government must scrap new tax policy \u2018reverse charge VAT\u2019 to show they are listening to builders and protecting jobs, according to the Federation of Master Builders (FMB).<\/p>\n","protected":false},"author":20,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[304],"tags":[882,720,283,276,572,656,701],"stakeholder_rel_tag":[],"contributor_rel_tag":[],"class_list":{"0":"post-89055","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-planning-construction-news","7":"tag-employment","8":"tag-federation-of-master-builders","9":"tag-finance","10":"tag-government","11":"tag-housebuilding","12":"tag-housing","13":"tag-supply-chain"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.9 (Yoast SEO v26.9) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>2 in 3 builders say VAT policy will lead to cashflow issues, warns FMB<\/title>\n<meta name=\"description\" content=\"The Government must scrap new tax policy \u2018reverse charge VAT\u2019 to show they are listening to builders and protecting jobs, according to the FMB\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/vat-policy-cashflow-issues-fmb\/89055\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"2 in 3 builders say VAT policy will lead to cashflow issues, warns FMB\" \/>\n<meta property=\"og:description\" content=\"The Government must scrap new tax policy \u2018reverse charge VAT\u2019 to show they are listening to builders and protecting jobs, according to the FMB\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/vat-policy-cashflow-issues-fmb\/89055\/\" \/>\n<meta property=\"og:site_name\" content=\"Planning, Building &amp; 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