Construction and building firms, including labour only sub-contractors, must be prepared for a major change to the way VAT is accounted for in their sector despite their current attention being focused on pandemic recovery.

Businesses have less than a month to review relationships with customers and suppliers ahead of the much-delayed introduction of the Domestic VAT Reverse Charge.

The new Reverse Charge, which was put off twice due to Brexit and Covid-19, comes into effect from 1 March and will make customers responsible for accounting for VAT on building service rather than the supplier.