The fog is slowly clearing on the changes ahead and HMRC is preparing a reverse charge website where all its guidance will be together with examples of the layout of new invoices and applications for payment and useful case studies. While we wait for the final versions to be agreed it is suggested a letter or email is sent to your VAT registered subcontractors to draw their attention to the coming changes and start them thinking and planning. The more firms that know and understand that there are changes ahead the better. This letter is not just for your subcontractors. Imagine your contractors sending it to you, many contractors will use it or their own form of words. Make sure to test your own cash flow, and consider whether you ought to ask to become a monthly repayment trader.
An example letter is available here. This letter should go to all VAT registered subcontractors who you pay for construction operations, whether paid gross or net being subcontractors whose Unique Tax Reference Number (UTR) you have verified.