Construction Accountants in London
Our Construction Accountants in London support contractors, subcontractors and construction companies with CIS, VAT, payroll, bookkeeping, annual accounts and tax.
Construction Accountants in London for contractors and subcontractors.
Construction businesses often have several accounting requirements operating at the same time. CIS affects payments to subcontractors, VAT treatment may depend on the construction reverse-charge rules, employees require PAYE payroll, and materials and labour costs need to remain visible alongside the annual accounts.
CIS Accounting
Subcontractor verification, deductions, monthly returns, payment statements and CIS records.
Construction VAT
Review VAT treatment including transactions that may fall within the domestic reverse charge.
Bookkeeping
Record contract income, materials, subcontractor costs, plant and general business expenditure.
Payroll
PAYE reporting for employees and directors where employment rather than CIS treatment applies.
Company Accounts
Year-end accounts and Corporation Tax for construction companies operating through a limited company.
Management Reporting
Review revenue, costs, margins and outstanding balances during the financial year.
Keep CIS verification, deductions and monthly returns under control.
Contractors operating within CIS normally need to verify subcontractors with HMRC before applying the relevant deduction rate.
HMRC currently uses a 20% deduction rate for registered subcontractors, 30% for unregistered subcontractors and 0% where the subcontractor has gross payment status.
Contractors also need to maintain the appropriate payment information and file the monthly CIS return. The return must normally reach HMRC by the 19th following the end of the relevant tax month.
For dedicated CIS support, see our CIS Accounting service .
Construction VAT does not always follow normal invoicing rules.
The domestic reverse charge applies to many standard-rated and reduced-rated construction services when the supplier and customer are UK VAT registered and the payment is reportable within CIS.
It does not automatically apply to every construction invoice. End-user status, employment-business supplies, zero-rated services and other exclusions can affect the treatment.
Construction businesses therefore need to consider both CIS and VAT when processing relevant transactions, while remembering that the two systems have different purposes.
Read the official HMRC construction VAT reverse-charge guidance or see our VAT Return service .
Turn construction turnover into useful financial information.
High contract income does not necessarily mean that a project or construction business is producing a strong margin. Labour, subcontractors, materials, plant and overheads all need to be recorded properly if the financial performance is to be understood.
Contract Income
Record project invoices and other construction income.
Labour
Separate employee payroll and subcontractor expenditure.
Materials
Record materials, plant and other direct project costs.
Overheads
Capture the wider costs of running the construction business.
Performance
Review margins, profit and the overall financial position.
Common questions from construction businesses.
Key points for contractors, subcontractors and construction companies dealing with CIS, VAT and accounting.
01 What are the current CIS deduction rates?
HMRC’s current CIS rates are 20% for registered subcontractors, 30% for unregistered subcontractors and 0% where the subcontractor has gross payment status.
02 When is the monthly CIS return due?
The monthly CIS return normally needs to reach HMRC by the 19th following the end of the relevant CIS tax month.
03 Are all construction workers CIS subcontractors?
No. CIS does not replace employment-status rules. Workers who are employees should normally be dealt with through PAYE rather than simply being treated as CIS subcontractors.
04 Does the construction VAT reverse charge apply to every invoice?
No. The relevant VAT, CIS, service and customer conditions must be considered. End-user status and other exclusions can result in normal VAT rules applying instead.
05 Can XLN support both CIS and the year-end accounts?
Yes. Our construction accounting support can connect CIS work with bookkeeping, VAT, payroll, limited company accounts, Corporation Tax and management reporting where those services are relevant to the business.
Need help with your construction accounts?
Speak to our Construction Accountants in London about CIS, VAT, payroll, bookkeeping, company accounts, Corporation Tax and ongoing financial reporting for your construction business.