The Federation of Master Builders, (FMB), has called on the UK Government to scrap the Reverse Charge VAT as they fear that it will lead to cashflow problems for the industry. According to research carried out by the FMB, 66% of builders feel that the new policy will have either a “moderate or significant” impact on cashflow, don’t understand it clearly or are not aware of it.
The FMB draw attention to the fact that the construction industry is currently under strain due to the Coronavirus and that builders just don’t have the time required to understand and comply with a complex new system.
Mr Deepak Singh Udassi, director of City Lofts London, supports the FMB’s view that there is a minority of dubious firms who tarnish the reputation of the industry as a whole. However, he proposes that a mandatory licensing scheme would address the problem at hand, without punishing the majority who do respect the regulations. According to Mr. Singh, such a scheme would create a minimum entry barrier, and would lead to an improvement of the standards and professionalism of the sector.
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