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Construction accountants

Running a construction business involves much more than completing projects and winning new work. You also need to manage subcontractors, labour costs, materials, VAT, CIS deductions, payroll and changing cash flow, often across several jobs at the same time.

Asmat & Co Accountants provides practical accounting and tax support for builders, contractors, subcontractors and construction companies across the UK. We help you keep accurate records, meet HMRC deadlines and understand how each project is affecting your overall financial position.

Whether you operate as a sole trader, partnership or limited company, you receive clear advice based on how your construction business actually works.

Accounting support built around the construction industry

General accounting figures do not always tell you what is happening within a construction business.

A company may appear profitable overall while individual projects are losing money. Retentions may delay income, materials may need to be purchased before customers pay, and subcontractor costs can change significantly during a project.

We help you organise your accounts so that you can see more than a year-end profit figure. Depending on the information available, we can help you understand:

This gives you better information when pricing work, reviewing margins or deciding whether your business is ready to take on a larger contract.

Construction accountants reviewing project costs with a UK building contractor

Who we support

Our construction accounting services can be adapted to businesses of different sizes and structures, including:

We can support you whether you work alone, manage a small team or operate a growing construction company using employees and subcontractors.

Construction accounting services

Your accounting requirements may change as your business grows. We provide joined-up support rather than treating each filing obligation as a separate task.

Our services can include:

Your service can be tailored around what you need now, with additional support available as your workforce, turnover and project commitments increase.

Construction Industry Scheme support

The Construction Industry Scheme creates responsibilities for both contractors and subcontractors.

If you pay subcontractors for construction work, you may need to register as a contractor, verify each subcontractor and make the correct deductions from qualifying payments. You will also need to provide deduction statements, maintain suitable records and submit monthly returns to HMRC.

HMRC normally applies the following deduction rates:

Monthly CIS returns are generally due by the 19th following the end of the relevant tax month. Even where no subcontractor payments have been made, you may need to submit a nil return or notify HMRC that the scheme is temporarily inactive.

We can help you:

Correct CIS administration reduces the risk of missed filings, inaccurate deductions and unexpected HMRC enquiries.

Support for CIS subcontractors

If you work as a subcontractor, CIS deductions are advance payments towards your eventual tax liability. They are not necessarily your final tax bill.

Your year-end position will depend on factors such as your business structure, income, allowable expenses and other taxes already paid. Accurate records are therefore essential when calculating your final liability or identifying a possible repayment.

We can review your:

Sole traders normally reconcile CIS deductions through their Self Assessment tax return. Limited companies generally offset qualifying deductions through their PAYE scheme. We make sure the correct process is followed for your business structure.

VAT and the domestic reverse charge

VAT can become complicated when your business provides or purchases construction services.

Most VAT-registered businesses must register when taxable turnover exceeds the current registration threshold. However, some construction businesses choose to register voluntarily, particularly where they regularly purchase VAT-bearing materials or work mainly with VAT-registered commercial customers.

The domestic reverse charge can apply when VAT-registered businesses supply qualifying construction services to other VAT-registered businesses within the CIS supply chain. Instead of the supplier collecting VAT, the customer accounts for it on its own VAT return.

The rules depend on the service supplied, the VAT and CIS status of the parties, and whether the customer is an end user or intermediary supplier.

Our VAT return support can help you:

We explain how the rules apply to your transactions rather than leaving you to interpret technical VAT guidance alone.

Bookkeeping that keeps pace with your projects

Construction bookkeeping needs to capture more than money entering and leaving your bank account.

Invoices may include labour, materials, plant hire, subcontractor charges, retentions and variations. Without consistent coding, it becomes difficult to understand whether a project has produced the margin you expected.

Our bookkeeping services can help you maintain organised records throughout the year. We can reconcile your bank accounts, review sales and purchase invoices, allocate costs and keep the information required for VAT, CIS and year-end reporting in one reliable system.

Regular bookkeeping can help you answer practical questions such as:

Finding these answers during the year is far more useful than discovering problems after the accounts have been prepared.

Project costing and profitability

Turnover alone does not show whether your construction business is performing well.

A busy company can still experience financial pressure if contracts are underpriced, variations are not invoiced promptly or indirect costs are excluded from quotations.

We can help you establish a clearer approach to project costing by reviewing:

When these costs are recorded consistently, you can compare expected and actual performance. This can improve future quotations and help you identify the types of work that provide the strongest return.

Payroll for construction businesses

Your payroll may include permanent employees, directors, temporary workers and individuals whose employment status needs careful consideration.

Paying someone as a subcontractor does not automatically make them self-employed. Their working arrangements must support that status. Incorrect treatment can result in unpaid PAYE, National Insurance contributions, interest and penalties.

Our payroll services can include:

We can also help you understand the accounting and tax implications of taking on employees as your construction business grows.

Annual accounts and tax returns

Your annual accounts should do more than satisfy Companies House and HMRC.

We use the information recorded during the year to prepare accurate accounts and identify issues that may require attention. This may include low-margin work, rising overheads, slow customer payments or unusually high material costs.

Our company accounts service can cover:

Sole traders and partners can also receive support with Self Assessment returns, expense claims and payments on account.

Cash flow planning for construction companies

Construction businesses often need to pay for labour and materials before receiving payment from the customer.

Delays caused by staged payments, retentions, disputed variations and slow certification can place pressure on an otherwise profitable business. VAT, PAYE, CIS and Corporation Tax deadlines can add further pressure if the amounts have not been set aside.

We can help you prepare cash flow forecasts that consider:

A forecast cannot prevent every delay, but it can give you more time to make informed decisions before a shortage becomes urgent.

Management accounts and financial reporting

You should not have to wait until the end of the financial year to understand your business.

Monthly or quarterly management accounts can provide a clearer view of performance while there is still time to act. Reports can be tailored around the information most useful to you, including:

We explain the figures in straightforward language and focus on the decisions they support.

Cloud accounting for construction businesses

Cloud accounting can reduce the amount of paperwork carried between your office, vehicle and project sites.

Receipts can be photographed and uploaded, bank transactions can be imported automatically, and invoices can be issued without waiting until you return to the office.

We can help you set up an accounting process that suits the way you work. This may include:

The aim is not to add more software to your business. It is to make your financial administration easier and improve the quality of the information available to you.

Why choose Asmat & Co Accountants?

Asmat & Co Accountants has supported UK businesses since 2007. Our team includes CIMA, ACCA and IFA-qualified professionals who combine technical knowledge with practical, day-to-day accountancy experience.

When you work with us, you receive:

We take the time to understand how you invoice customers, pay subcontractors, purchase materials and manage projects. This allows us to provide advice that is relevant to your construction business rather than relying on a standard accounting package.

Switching accountants

Changing accountants does not need to interrupt your projects or create additional administration.

Once you authorise us to act, we can contact your previous accountant, request the relevant records and arrange professional clearance. We can also apply for the HMRC authorisations needed to manage your tax affairs.

During the handover, we review your accounting records, upcoming deadlines and any unresolved CIS, VAT, payroll or tax matters. You will then know what has been transferred, what remains outstanding and what needs to happen next.

Speak to an accountant who understands construction

Get clearer control of your CIS, VAT, payroll, project costs and tax obligations. Contact Asmat & Co Accountants to discuss your construction business and the accounting support you need.

Frequently asked questions

What do construction accountants do?

Construction accountants help contractors, subcontractors and building companies manage industry-specific financial responsibilities. These may include CIS returns, VAT reverse charge rules, payroll, bookkeeping, annual accounts, tax returns, project costing and cash flow forecasting.

They can also help you separate labour, materials and subcontractor costs so that your records provide a clearer picture of project profitability.

Do I need an accountant for CIS?

You are not legally required to appoint an accountant to manage CIS, but professional support can reduce the risk of verification errors, incorrect deductions and late monthly returns.

An accountant can register your business, verify subcontractors, prepare CIS statements and reconcile deductions against your payroll or tax records. This can be particularly useful if you regularly engage several subcontractors or have historic returns that need correcting.

Is CIS deducted before or after VAT?

CIS deductions are generally calculated using the qualifying payment excluding VAT. The direct cost of materials paid for by the subcontractor is also normally excluded before the deduction is calculated.

The position can become more complicated when the domestic reverse charge applies, so invoices should clearly separate labour, materials and VAT treatment. Each transaction should be reviewed according to the actual work supplied and the status of both parties.

What expenses can a construction business claim?

A construction business can generally claim costs incurred wholly and exclusively for business purposes. Depending on the circumstances, these may include materials, tools, protective clothing, insurance, vehicle costs, plant hire, subcontractor payments, professional fees and certain office costs.

The tax treatment depends on what was purchased, how it is used and whether it is a day-to-day expense or a capital asset. Receipts, invoices and evidence of business use should be retained.

Can an accountant help me claim back CIS deductions?

Yes. An accountant can check your deduction statements, reconcile the amounts against your income and make sure they are claimed through the correct route.

Sole traders normally include CIS deductions in their Self Assessment tax returns. Limited companies usually offset deductions through their PAYE scheme. Any repayment will depend on your complete tax position, not only the amount deducted under CIS.

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  • Old Bank Building, 35-37 King St, Darlaston, Wednesbury WS10 8DE, United Kingdom
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