From 1st March 2021 HMRC have introduced the Domestic Reverse Charge in relation to VAT. In short, it is a measure designed to prevent the defrauding of the UK VAT system.
It works as a chain of transactions with the seller no longer having to account for the VAT. Where the reverse charge applies, the obligation to account for the VAT is passed down the construction supply chain to the recipient of the service, until it reaches the end-user.
There is lots of detailed information and guidance that can be found on the Government website, links to which can be found below; however this guidance note is intended to focus just on the impact on residential landlords and managing agents.
Covering Topics
Who Is Liable?
Who Does The Charge Apply To?
Resident Management Company
Investor Landlords
Leaseholders
Landlords
Conclusion
Further information
Resource
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