The Government has announced it is to postpone its controversial reverse VAT charges for the construction and building industries, just weeks before the changes were due to be implemented.
On the 1stOctober 2019 the reverse charge was to commence, however, the Government has confirmed it is to delay its decision for another year.
The Federation of Master Builders recently polled its members to find that alarmingly, 69% of its members were not aware of the forthcoming change; and of those aware of reverse charge, few were prepared.
However, those construction and building companies mustn’t bury their heads in the sand. Reverse charge will happen. They cannot adopt a ‘tomorrow never comes’ attitude to a change that will massively effect their cashflow and working capital.
The threat to cashflow is real. Whereas before, businesses would charge their customers the VAT, and then hold on to it until they completed their VAT tax returns, from next year they will no longer collect the VAT – their customers will pay HMRC direct. This will see a large amount of funds each year excluded from essential rolling working capital.
Businesses must prepare for tomorrow by taking action today!
That’s why your construction and building company should be talking to me. As the UK’s longest established, independent broker, Capital Corporate Finance – CCF - is ideally placed to arrange tailored and flexible finance to fill the reverse VAT charge void next year.
Alternative finance and funding will allow your business to continue to grow and thrive, perhaps more, with the right financial support behind it.
Take for example, invoice finance, the UK’s most popular form of alternative finance.
It’s a finance option that sees you paid up to 90% of each issued invoice within 24hrs, with the balance paid when your customer settles. What’s more, it has an inclusive credit control service so you don’t have to worry about chasing overdue payment.
Not bound by contracts or targets, CCF has unique access to all UK lenders. What’s more, our independent status gives us fast track privileges, which sees applications processed quicker, and sometimes cheaper, than going direct.
Prepare for your tomorrow by calling me today– 07785 596053, or email me at carole@capitalcorporate.co.uk
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