It’s Wise Up Wednesday! VAT For Construction Contractors

VAT For Construction Contractors

VAT for construction contractors is the Perfect Storm about to hit your business.

Before you read this, just do me a favour and open your mind to the power of possibility. And in particular the fact that what I’m saying is based on;

  • my lifetime in construction and 28 years in dispute resolution
  • a keen observation of what is going on in the real world
  • working exclusively with subbies just like you
  • and might actually come to fruition (remember I predicted Carillion)

If you take action now, and I turn out to be wrong, then you will still have improved and protected your business.

What Is A Perfect Storm?

prepare your business now for perfect storm in vat for construction contractors








A perfect storm is an event in which a rare combination of circumstances drastically aggravates the event. The term is used by analogy to describe an unusually severe storm that results from a rare combination of meteorological phenomena.

The Perfect Storm About To Hit Subbies

In your case the perfect storm is a rare combination of factors that are happening or about to happen in construction, over which you have no control whatsoever. They are;

• Construction activity and new work both fell at the fastest pace in a decade with all areas declining (Chartered Institute Procurement)
• Material prices continue to increase
• Labour shortages are driving price hikes and ransom payments
• Several major Contractors have issued profit warnings
• The VAT reverse charge for construction will hit your cash flow*

What You Can Do To Protect Your Business

You might not be able to change external factors that are impacting your business, but you can take action on those internal factors you CAN control;

• increase your effective marketing and sales activity
• do not just work for any new Contractor – check thoroughly
• don’t ignore the commercial and contractual risks
• read and understand the contract – is it onerous?
• do what the contract says when you should do it
• records, records, records
• smarten up your buying where you can
• look for alternative sources of labour (not easy – but it is doable)
• do not ignore under valuation and slow payment – take action
• get advice about the VAT reverse charge

Ignoring VAT For Construction Contractors Is Not An Option

Do not ignore this important information relating to VAT for construction contractors. It’s too late to wish you had read, understood and applied the advice when work has dried up, your margins are through the floor, and the Contractor is not paying you…

99% of contractual problems end up with you not getting paid, and not getting paid has cost literally thousands of construction Subbies their business in the last 12 months!

And 90% of the time you could have protected your profits and your business by the simple expedient of thinking objectively about your business and taking positive action in the right areas.

We are already helping lots of subbies just like you to take action on all of the above, protect their business and recover hundreds of thousands of pounds on their behalf. So, if we can help you please give us a call on 01773 712116.

Alternatively get your tin hat and wait for the perfect storm to hit!

And finally, please remember it’s all too easy to ignore this and put your business at risk. Please don’t do that. Give us a call on 01773 712116, or send me an email for information about VAT for subbies today.

  • Our ‘VAT Reverse Charge’ Seminar on 17 July is SOLD OUT, but please email info@streetwisesubbie if you would like our information sheet.

Here is a useful link for general VAT information.

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Construction’s a tough place to do business right now, and Specialist Contractors need all the help you can get. That’s why you will find our resources and expertise are invaluable, whatever the size of your business and whatever your specialisation. We’re here to help you solve all your business problems, including the crucially important contractual ones, such as getting paid.

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Helpline: +44 (0)1773 712116