Construction & Builders accounting, handled.

No — CIS only applies to construction work between businesses in the scheme (contractors and subcontractors). Direct work for a homeowner who is buying for themselves is outside CIS. But the moment you hire a subbie on that job, you become a contractor for CIS purposes and have to verify and deduct from them, even though the end client is a homeowner. We set up your CIS registration the moment you cross that line.

When you invoice another VAT-registered, CIS-registered business for construction services, you don't charge VAT — the customer accounts for it themselves under the reverse charge. Your invoice must clearly state 'reverse charge: customer to pay VAT to HMRC'. End users (e.g. developers selling on) sit outside the reverse charge. We configure your invoice templates and VAT return so the right transactions land in the right boxes.

WIP should be valued at cost plus an appropriate share of profit if the project's outcome is reliably estimable — otherwise just costs incurred. Retentions are recognised as receivables but provided against if collection looks uncertain. For projects spanning year-end, the WIP and retention figures swing reported profit significantly, so we agree the methodology with you upfront rather than crunching it in March.

You need to pass three tests: business (£30,000 turnover per partner/director from construction), compliance (clean tax filing record over the last 12 months), and turnover (£30,000 minimum). Once granted, contractors pay you gross with no 20% deduction — huge cash flow benefit. We prepare the application, including the turnover statement and compliance review, and handle the annual reviews HMRC runs to keep you on it.

If a worker turns up at one site, uses your tools, takes instruction on how to do the job, can't send a substitute, and is paid by the hour with no financial risk, HMRC will treat them as employed regardless of what the contract says. Reclassification means back-paying PAYE, employer NI, and penalties. We review your worker arrangements and flag the high-risk ones before HMRC does.