Construction & Builders accounting, handled.
Simplify your construction finances, focus on projects, and grow your business.
Looking for an accountant for construction that actually understands CIS, the VAT reverse charge and gross payment status? We're construction accountants who live inside the Construction Industry Scheme every month, verifying subcontractors, reconciling CIS suffered, and stopping HMRC clawing back 20% (or 30%) of money that's rightfully yours. Whether you're a sole-trader sparky, a labour-only subbie, or a main contractor running a chain of subcontractors, we keep your deductions, returns and VAT exactly where they should be.
What we get right for construction & builders.
- We recover the CIS tax you've already paid
- Most subcontractors quietly overpay. If you trade as a limited company, your CIS deductions (20% if verified, a punishing 30% if you're not) are offset against your PAYE/CIS liabilities each month, but only if the suffered figures are reported correctly on your EPS. Get the reconciliation wrong and the cash sits with HMRC until year end. We track every deduction statement, claim the offset monthly, and turn the leftover into a refund rather than a write-off.
- We get you gross payment status, and protect it
- Gross payment status means contractors pay you in full with no 20% lopped off, transforming your cashflow. To qualify you need net construction turnover above £30,000 per director/partner (or £200,000 for the whole business), a clean compliance history, and UK business banking. We prepare the application, then guard the status, because one late return or payment can trigger a review and lose it.
- We handle the VAT domestic reverse charge so it doesn't sink your cashflow
- Since the 2021 reverse charge, most CIS-registered subbies no longer charge VAT to contractors, the contractor accounts for it instead. Get the invoice wording or coding wrong in Xero or QuickBooks and you either over-collect VAT you must repay or under-declare and face assessments. We set the software up properly and tell you exactly when the charge applies and when it doesn't (end users, zero-rated new build, private domestic work).
- Fixed fees that suit a trade, not a city firm
- Construction income is lumpy, a big retention here, a quiet winter there. Our pricing is fixed and rolling monthly at £99, £199 or £499, so you always know the cost. ACCA-qualified, a named accountant who picks up the phone, replies within 72 hours, and a 30-day money-back guarantee. No surprise bills the month a job overruns.
The full picture.
01CIS for subcontractors: stop the 30% bleed
If HMRC can't verify you, contractors must deduct 30% instead of 20%, a third of every payment gone. We register you, make sure you're verified on every contractor's books, and reconcile your monthly deduction statements so nothing goes missing. For limited companies we offset the CIS suffered through the payroll each month; for sole traders we set it against your Self Assessment, usually generating a sizeable refund.
02CIS for contractors: monthly returns done right
Run subcontractors and you're a CIS contractor with real obligations: verify every subbie before paying, deduct the correct rate, issue deduction statements by the 19th, and file the CIS300 monthly return by the 19th or face an automatic £100 penalty that escalates to £200 plus tax-geared charges. We run the whole cycle for you and keep you clear of penalties even in your busiest months.
03VAT domestic reverse charge, set up correctly
The reverse charge catches almost all CIS-registered B2B construction work. We configure your accounting software with the right tax codes, draft compliant invoice wording, and map out the exceptions, supplies to end users, work for non-VAT-registered customers, and zero-rated new-build housing, so you neither over-charge nor under-declare. We'll also advise whether the VAT Flat Rate Scheme still pays once the reverse charge strips out your sales VAT (it usually doesn't).
04Employment status: subbie or hidden employee?
HMRC scrutinises construction harder than almost any sector for false self-employment. Pay a 'subcontractor' who's really an employee and you're liable for the PAYE and NIC you should have operated, plus penalties. We review your labour arrangements against the status tests, document the position, and keep you on the right side of the line.
05Vans, tools, mileage and the allowances that add up
Plant, tools, a new van and equipment qualify for the Annual Investment Allowance, 100% relief in the year you buy. We claim your business mileage at HMRC's simplified rate of 55p per mile for the first 10,000 business miles (then 25p), plus protective clothing, site PPE, tool insurance and use-of-home. The small stuff a generalist forgets is real money across a year on the road.
06Company structure, retentions and CT planning
Whether to incorporate hinges on your margins, your CIS position and how you draw money. We model sole trader vs limited, factor in Corporation Tax at 19% up to £50,000 of profit and 25% above £250,000 with marginal relief between, and handle the WIP and retention quirks, recognising income on long jobs and retentions held for months without paying tax before you've actually been paid.
First call to filed.
- 01
Discovery
Understanding your business needs.
- 02
Solution Design
Crafting your custom accounting strategy.
- 03
Onboarding
Quick and easy integration.
- 04
Regular Rhythm
Consistent monitoring and reporting.
Guides for construction & builders
Plain-English explainers, kept current with the latest HMRC rules.
Frequently asked questions.
If you're registered under the Construction Industry Scheme and the contractor successfully verifies you with HMRC, they deduct tax at 20%. If you're not registered, or HMRC can't match your details, they must deduct the higher rate of 30%. Both are advance payments toward your tax and National Insurance, but the extra 10% ties up cash you'll wait until year end to reclaim. Registering and staying verified is the fix, and it's quick to sort.
You need to pass three tests: the business test (you carry out construction work through a UK bank account), the turnover test (net construction turnover over £30,000 per director or partner, or £200,000 for the whole business regardless of numbers), and the compliance test (your tax returns and payments are all up to date). Once granted, contractors pay you gross with no deduction. We handle the application and then protect the status, because a single late return can put it under review.
No, it applies to most CIS-registered, business-to-business construction services where both parties are VAT registered, but there are key exceptions. You still charge VAT normally to 'end users' (typically the final customer who isn't selling the construction on), to customers who aren't VAT registered, and on certain zero-rated work like qualifying new-build housing. Getting the boundary right is exactly where generalist setups go wrong, and we make sure your invoices and software reflect it.
Contractors must file the CIS300 monthly return by the 19th of each month, covering the tax month running from the 6th to the 5th. Miss it and there's an automatic £100 penalty the day after, a further £200 if it's still outstanding two months later, and tax-geared penalties beyond that. You must also give each subcontractor a deduction statement by the 19th. We run the cycle so the deadlines never catch you out.
As a limited company, you offset the CIS deductions suffered against the PAYE and CIS you owe each month, reporting the figures on your Employer Payment Summary. If your deductions exceed what you owe, the balance is repaid after the tax year ends. The common mistake is not reporting suffered amounts correctly, which leaves your money stuck with HMRC. We reconcile every deduction statement monthly so the offset actually happens.
Yes. A van bought for the business qualifies for the Annual Investment Allowance, giving 100% relief in the year of purchase, and the same applies to tools and plant. Running costs, business mileage (claimed at HMRC's simplified 55p per mile for the first 10,000 miles, then 25p), PPE and protective clothing, tool insurance and a use-of-home allowance are all deductible too. These add up to real savings, and we make sure none get missed.
It depends on the working arrangement, not what you call them. HMRC targets construction hard for 'false self-employment', and if a labourer is really an employee you become liable for the PAYE and NIC you should have operated, plus penalties and interest. We review each arrangement against HMRC's status tests, document the reasoning, and keep your CIS and payroll positions defensible.
Stop overpaying tax. Start filing in 5 days.
Thirty minutes with an ACCA-qualified accountant. Most owners uncover £1,000-£3,000 in annual savings on the first call. If we are not the right fit, you walk away with a free tax review on the house.
