Accountants for the Construction Industry
Running a construction business can be challenging so it’s no surprise that many see accountancy and administration as nothing more than a necessary annoyance.
The reality is that one of the biggest risks to your business is poor financial control. Finding a property accountant who can really help your business is a lot like recruiting a skilled tradesman. An accountant who has the right experience, best tools for the job and professional qualifications will achieve the best results.
Some of the areas where we can help you:
Tax planning
The decision to run your business as a sole trader or through a limited company can have a big impact on your tax liabilities over the long term as well as the short term. Personal circumstances such as your level of income and retirement plans will be important factors in extracting profits in the most tax efficient way possible; which is why we offer tailored services to clients rather than a generic one size fits all service.
Limit your level of financial risk
Accountants often advise clients to form a limited company in order to benefit from limited liability. While this is a valid piece of advice which we strongly advocate, it won’t stop you from losing all of the assets held in the company and possibly your sole income should your business become insolvent.
Being proactive in setting up a robust accounting system is one of the best things you can do to gain financial control of your business. We can put systems in place to alert you to any potential risks to cash flow before they become serious problems, provide you with real time management information and streamline your accounts process to save you significant time.
VAT
The type of building work you undertake will determine which option is the most appropriate for your circumstances. An example being if you are undertaking a new build, the project may qualify for zero rated VAT, depending on whether it meets the criteria set by HMRC. VAT can be extremely complex, with a number of tax traps” where professional advice should be sought before commencing a project.
VAT Reverse Charge is a way of accounting for VAT where the end-customer accounts for VAT and the supplier of constructions services does not. The reverse charge means the customer receiving construction services has to pay the VAT to HMRC instead of the supplier. The end-customer recovers the VAT subject to the normal rules set by HMRC.
The CIS VAT domestic reverse charge measure applied from 1 March 2021. It had been due to commence in October 2019 but was twice delayed because of Brexit and Coronavirus.
Construction Industry Scheme (CIS) for contractors
Under the CIS scheme, contractors must deduct 20% from a subcontractor’s pay and pass it on to HMRC to count towards advance payments for tax and National insurance contributions. If you are looking to outsource this activity we offer a comprehensive payroll service to help ensure your business remains compliant with CIS, as well as RTI and Auto enrolment.
Construction Industry Scheme (CIS) for sub-contractors
As a subcontractor you will be subject to CIS tax deductions taken by your employer and paid directly to HMRC. These payments don’t take in to account the costs of running your business or any other income you may receive outside of your contract. As qualified accountants and tax advisers we can help you claim back all of the available allowances and expenses incurred by you in the course of your work.
If you are interested in becoming a client of Morris Crocker, contact us
on 023 9248 4356. You can also use the request a quote form at the top
of this page.