CRS VAT Chartered Tax Advisors have recently released guidance on Domestic Reverse Charge for Construction Services in the NHS. Domestic Reverse Charge (‘DRC’) for construction services will come into effect from 1 March 2021. DRC is a response measure to remove potential for fraudulent activities.

The DRC will need to be considered for a range of construction services. There are five conditions that must be met for the DRC to apply.

Key points

• NHS bodies must consider whether DRC applies on a contract-by-contract basis and notify suppliers of end user status in writing
• HMRC will apply a light-touch when assessing for errors until 1 September 2021
• Future errors may result in penalties and interest.

If you would like to know more please contact business.services@eoecph.nhs.uk