Shufflebottom adds its voice to the Build UK #StopReverseVAT Campaign

Shufflebottom, have joined the Build UK #StopReverseVAT Campaign and are proud to have added our voice to a coalition of trade bodies calling on the Chancellor to withdraw the VAT Reverse Charge.

Many construction businesses have worked throughout the Pandemic to keep construction processes going, sub-contractors busy, customers supplied, and workforces in employment. As you would imagine, it’s not been without significant challenges, and often setbacks. But we’ve risen to the challenges, kept buoyant and played a significant role in driving the local and national economy.

 Shufflebottom very much appreciated, the UK Government’s explicit recognition of the role our construction sector continues to play in keeping vital services and infrastructure running as smoothly as possible during the Pandemic.

But. And it's a big but. From 1st March 2021 HM Treasury plans to introduce the Construction Services Domestic Charge known as “Reverse VAT” or “Reverse Change VAT”. It’s a new way of collecting VAT from businesses, that provide construction services within the scope of the Construction Industry Scheme (CIS). Rishi Sunak, Chancellor of the Exchequer, is planning to implement this change in an attempt to ensure the Government is recovering the correct amount of VAT from the construction sector for work carried out within the UK. 

However, Reverse Charge VAT will have a huge negative impact on our vital construction sector, by restricting cash flow – at this, the worst of times, when we look to work our way out of the Pandemic and towards economic recovery.

Shufflebottom along with many others, urges the UK Government to reconsider this Policy as a matter of urgency and to use the forthcoming Budget to withdraw the Campaign and file it under bin!

Alex Shufflebottom, Director at Shufflebottom, presents her viewpoint in the accompanying postcard statement.

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