Construction accountants · CIS · UK-wide
Accountants for construction UK.
CIS tax, subcontractor returns, contractor accounts, VAT reverse charge. Construction-specific tax handled correctly. FCCA qualified.
Book a call →Construction accounting — what's different
Construction has specific tax rules that generalist accountants often get wrong: the Construction Industry Scheme (CIS) — deductions from subcontractor payments, annual reclaim process; VAT reverse charge — the buyer accounts for VAT on most B2B construction services; and asset-heavy businesses with capital allowances on tools, plant, and vehicles. Getting CIS and VAT wrong has direct cash consequences.
CIS self-assessment and reclaim →
Annual return with CIS deductions correctly offset against tax. Reclaims processed.
CIS registration (contractor/subcontractor) →
Register as contractor, subcontractor, or both. Correct rate applied.
Construction VAT reverse charge →
Correct VAT treatment on B2B construction services — a common error area.
Tools and equipment (capital allowances) →
AIA on qualifying tools and equipment. Vehicle capital allowances.
Limited company for builders →
When to incorporate, salary/dividend, director loan account management.
Payroll for construction workers →
PAYE for employed workers alongside CIS for subcontractors.
Construction accountant — FAQs
What is CIS and how does it affect construction workers?
The Construction Industry Scheme (CIS) requires contractors to deduct money from subcontractor payments before paying them. The deduction (20% for registered subcontractors, 30% for unregistered) is paid to HMRC as an advance against the subcontractor's tax and NI liability. Subcontractors must file a self-assessment return each year to claim any CIS deductions back (or pay any additional tax owed). [VERIFY current CIS rates at gov.uk/what-is-the-construction-industry-scheme]
Can I reclaim CIS deductions?
Yes. CIS deductions are an advance payment of tax. When you file your self-assessment, the CIS deductions made by contractors are credited against your final tax liability. If deductions exceed your tax bill, HMRC refunds the difference. Accurate records of all CIS statements received from contractors are essential for this calculation.
What expenses can construction workers claim?
Common allowable expenses for construction workers and subcontractors: tools and equipment (capital allowances or expense depending on cost), workwear and PPE, vehicle costs (fuel, maintenance, hire — for business travel), public liability insurance, trade association membership, relevant training, and accountancy fees. Materials that you supply and include in invoices may also be claimable. [VERIFY at gov.uk]
Do construction companies need to register for VAT?
Yes, above the £90,000 threshold [VERIFY]. Construction also has specific VAT rules: the reverse charge applies to most B2B construction services, meaning the buyer accounts for VAT rather than the supplier. This affects cash flow and VAT return completion. Getting this wrong is a common issue in construction businesses. [VERIFY current reverse charge rules at gov.uk]
Should a builder or tradesperson be a sole trader or limited company?
Most tradespeople start as sole traders. A limited company becomes more tax-efficient at around £30,000–£40,000 profit, offers personal liability protection, and can be better for securing contracts with large clients who prefer to engage limited companies. The CIS rules differ slightly for companies vs sole traders. We model both structures before recommending.
Construction accounting sorted. Book a call.
CIS, VAT reverse charge, capital allowances. 20 minutes.
Book a call →Iftikhar Rashid FCCA · UK-wide · 16 years