The Government has identified that there is an issue with missing trader VAT fraud in the provision of labour in the construction sector.
A consultation document will be published on 20 March 2017 to consider the options available to combat VAT fraud in the construction sector.
Particular preference is for a reverse charge mechanism to apply so the recipient of the services accounts for VAT.
The consultation will also consider other changes including the qualifying criteria for gross payment status within the Construction Industry Scheme.
Providers and recipients of labour in the construction sector will be affected by these proposals and would be advised to review the consultation document when available.