Construction Accountants UK Blog
Guides, tips, and advice on CIS compliance, construction tax, and getting the most from your construction accountant.
Construction Industry Scheme (CIS) Explained
The Construction Industry Scheme (CIS), administered by HMRC, requires contractors to deduct 20% or 30% tax from subcontractor payments on construction work exceeding £50,000 annual turnover. This sch...
CIS Tax Deductions Explained
The Construction Industry Scheme (CIS), introduced by HMRC in 2007, requires contractors to deduct 20% or 30% tax from subcontractor payments, withholding £12.5 billion in 2022-23 per HMRC annual repo...
CIS Registration Guide
The Construction Industry Scheme (CIS), administered by HMRC, requires contractors to deduct 20% or 30% tax from subcontractor payments, with registered subcontractors receiving a unique CIS number fo...
Accounting for Construction Businesses
Construction accounting diverges from general accounting by emphasising project-specific tracking, long-term revenue recognition, and job costing over traditional accrual methods used in retail or ser...
Allowable Expenses for Contractors
A UK-focused guide to common allowable expenses for self-employed construction contractors, including travel, tools, PPE, home working and record keeping.
Limited Company vs Sole Trader for Contractors
In the UK, sole traders represent 80% of small businesses (HMRC 2023 data), while limited companies offer scalability for growing enterprises. Sole traders suit freelance contractors starting out with...
CIS Returns Explained
CIS Returns are monthly statements contractors must submit to HMRC detailing payments to subcontractors under the Construction Industry Scheme, with deductions at 20% or 30% withheld as tax. These fil...
Construction Bookkeeping Tips
Selecting the right bookkeeping software can reduce setup time by 40% and improve job costing accuracy by 25%, according to Procore's 2023 Construction Financial Report. Construction firms rely on the...
VAT Reverse Charge for Construction
The VAT reverse charge shifts the responsibility for accounting for VAT from the supplier to the customer, as outlined in HMRC VAT Notice 700/6, preventing missing trader fraud in high-risk sectors. I...
CIS Penalties Explained
The Construction Industry Scheme (CIS) is a UK tax deduction system administered by HMRC where contractors deduct 20% or 30% from subcontractor payments, verified via UTR numbers on CIS300 forms. Per ...
Accounting Software for Construction Businesses
Construction projects face higher failure rates than other industries due to poor cost tracking. Generic tools like QuickBooks lack essential features such as job costing and work-in-progress tracking...
HMRC Rules for Construction Contractors
The Construction Industry Scheme (CIS), established under the Finance Act 2004, requires contractors to verify subcontractors with HMRC and deduct 20% or 30% tax from payments. This scheme applies to ...
Record Keeping for Construction Businesses
Proper record keeping prevents 85% of construction disputes from escalating to litigation, according to a 2023 FMI study, while ensuring HMRC compliance and HSE safety standards. Construction business...
Year End Accounts for Construction Companies
Year-end preparation for construction companies involves systematic document collection and reconciliations to ensure accurate financial statements compliant with Companies House deadlines, typically ...
Applying Section 23 of FRS 102: The Percentage of Completion Method
Section 23 of FRS 102 requires construction revenue to be recognised by reference to the stage of completion of the contract activity. The mechanics matter; weak cost forecasting produces material audit adjustments.
Accounting for Onerous Construction Contracts and Loss Provisions
Onerous contract accounting is conservatism in action: book the full expected loss the moment you can foresee it, regardless of the stage of completion. Frequently understated and frequently the source of audit adjustments.
Valuing and Reconciling Long-Term Contract Balances at Year-End
The year-end reconciliation between revenue recognised, valuations issued, payments received, and retentions held is where construction company accounts succeed or fail at audit. Get this right and the rest is easier.
Accrual vs Cash Accounting for Complex Multi-Year Developments
Cash accounting cannot defensibly handle a multi-year development. UK GAAP requires accruals; the question is which accruals matter and how to ensure the schedule survives audit and management reporting.
How to Correctly Map Retention Moneys Withheld on the Balance Sheet
Retention moneys are revenue earned but not yet payable. The balance sheet treatment is straightforward in principle and frequently mishandled in practice.
Treatment of Pre-Contract Costs and Tender Expenses Under UK GAAP
The default for tender costs is "expense as incurred." Capitalisation is permitted under specific conditions and is one of the most commonly over-stretched judgements in construction accounts.
FRS 102 Revenue for Construction: Variations, Claims and Incentives (2026)
Variations agreed in writing go straight into revenue. Claims and incentive payments are harder: recognise too early and you over-state revenue, recognise too late and you under-state work performed. The test is probable and reliably measurable.
Losing CIS Gross Payment Status: How to Appeal a Withdrawal
Gross Payment Status removes CIS deductions at source, so its loss is effectively a 20-30% cash-flow hit. Understanding the compliance test and the appeal window is how subcontractors defend it.
CIS Deemed Contractors: When Non-Construction Firms Must Register (£3m Rule)
Businesses with nothing to do with construction can be pulled into CIS as deemed contractors once their construction spend crosses a rolling threshold. Many discover the obligation only after the exposure has built up.
CIS on Mixed Contracts: Labour vs Materials and Supply-and-Fix
A contract that combines materials with installation splits into different CIS treatments at the line-item level. Getting the labour-materials split wrong creates exposure in both directions, and HMRC reviews catch it routinely.
Does CIS Apply to You as a Property Investor or a Developer?
Investor or developer? For the Construction Industry Scheme the two sit on opposite sides of a line, and which side you are on decides whether you must deduct tax at source.
How the Reverse Charge Hits Subcontractor Cash Flow
Before the domestic reverse charge, a subcontractor collected the VAT on a job and held it until the next return. Since 1 March 2021 that money never arrives, and for a labour-heavy subcontractor the loss of that cash buffer is the part that hurts.
End-User Certificates: Overriding the VAT Reverse Charge
A written end-user notification is the single document that switches the reverse charge off and puts VAT back on the invoice. Getting the wording, the timing, and the file right is where most disputes are won or lost.