Construction accounting for contractors, subcontractors and building businesses in Oxfordshire
CIS compliance, VAT domestic reverse charge, project costing, and cash flow management — handled by an ICAEW-accredited firm that understands the complexities of the UK construction industry.
Common questions construction businesses face
- Do I need to register for CIS as a contractor, a subcontractor, or both?
- How do I handle the VAT domestic reverse charge on my invoices?
- Am I paying more tax than I need to on plant, machinery, and equipment?
- How do I track profitability across several projects running at the same time?
- Should my business be structured as a sole trader, limited company, or LLP?
- My cash flow is stretched — how can I manage retention and milestone payments better?
- Are my subcontractors correctly verified and are my monthly CIS returns accurate?
- How do I make sure I'm fully compliant with Making Tax Digital (MTD)?
UK construction industry regulations
The UK construction industry operates under unique tax and regulatory frameworks that require specialised accounting knowledge, including:
- Construction Industry Scheme (CIS) — registration, subcontractor verification, and monthly returns
- VAT domestic reverse charge — invoicing and accounting for CIS-registered businesses
- Making Tax Digital (MTD) — digital record-keeping and quarterly submissions
- Capital allowances — tax relief on plant, machinery, and vehicles
- IR35 determinations — off-payroll working rules for contractors and subcontractors
Meet the founder
Simon enjoys helping construction business owners take control of their finances and grow. He began his career at KPMG and has spent two decades helping businesses of all sizes make sense of their numbers — from sole-trader tradespeople through to multi-project limited companies and property developers. He is a Fellow of the Institute of Chartered Accountants in England and Wales (ICAEW), the most senior designation the institute awards. He offers a free, no-obligation introductory call for all new enquiries.
Why construction companies need specialised accounting
- Project-based accounting: Track revenue, expenses, and profitability for each individual project
- Job costing: Accurately measure labour, materials, equipment, and overhead costs
- Contract management: Navigate complex contracts, milestone payments, and payment terms
- Retention management: Track and account for retained payments throughout a project's lifecycle
Who we work with
Main contractors & subcontractors
CIS compliance, subcontractor verification, monthly returns, and deduction management for businesses at every tier of the supply chain.
Property developers & housebuilders
Project cost tracking, land and property tax planning, VAT structuring, and financial reporting for residential and commercial developers.
Sole traders & small contractors
Affordable, comprehensive accounting packages for self-employed tradespeople and smaller construction businesses including CIS registration and self-assessment.
Limited companies & growing firms
Year-end accounts, corporation tax, director payroll and dividends, management accounts, and growth advisory for construction companies ready to scale.
Our construction accounting services
Financial management
Customised financial analysis and performance services built around the construction sector:
- Comprehensive cloud-based accounting systems
- Cash flow forecasting and management
- Financial statement preparation and analysis
- Project profitability tracking
- Construction-specific KPI tracking and reporting
Tax planning & compliance
Navigate complex construction tax requirements with specialist expertise:
- Construction-specific tax planning strategies
- VAT domestic reverse charge management
- CIS (Construction Industry Scheme) compliance
- Capital allowances for plant and machinery
Payroll management
Manage your workforce effectively across sites and projects:
- Multi-site and multi-project payroll management
- Subcontractor verification and status checks
- CIS deductions and monthly reporting to HMRC
Strategic business advisory
Grow your construction business with clear financial guidance:
- Business structure optimisation (sole trader, limited company, LLP)
- Profit improvement strategies
- Cash flow management for construction projects
- Growth planning and financing options
Why work with us?
- This service is ideal for construction businesses of all sizes — from sole-trader tradespeople through to multi-project limited companies and developers.
- We understand construction — CIS, domestic reverse charge, retention, job costing, and project cash flow are central to what we do, not afterthoughts.
- Competitive, transparent pricing. You'll know our fees upfront with no hidden costs or surprises. Contact us for a personalised quote.
- Unlimited support. Phone and email help whenever you need it — not just at year end.
- ICAEW accredited — the accounting industry's gold standard.
- Free discovery call. No obligation — let's talk through your situation first.
What our clients say
Simon's friendly approach hides just how skilled and professional he and his team really are. After being let down by a previous accountant, we were under pressure to meet some important deadlines. Simon quickly understood what needed to be done. His advice and support made a huge difference — saving us both time and money. I honestly can't recommend him enough.
Simon has been a huge help to our business since its formation in 2017. He is knowledgeable, friendly, and always quick to respond. He comes with the highest recommendations.
Construction accounting FAQs
CIS is a HMRC scheme that requires contractors to deduct tax at source from subcontractor payments before passing the money on. If you pay subcontractors for construction work, you must register as a contractor. If you are paid by a contractor, you should register as a subcontractor — registered subcontractors benefit from a lower 20% deduction rate rather than the 30% applied to unregistered ones. We handle registration and ongoing monthly returns for both contractor and subcontractor clients.
Introduced in March 2021, the domestic reverse charge shifts VAT accounting responsibility from the supplier to the customer for most construction services supplied between CIS-registered businesses. Rather than charging VAT on your invoice, you annotate it to indicate the reverse charge applies and the customer accounts for the VAT. This has significant implications for invoicing and cash flow, and we manage the process for our construction clients to ensure full HMRC compliance.
Long projects create cash flow pressure because of milestone billing, retention balances, and the upfront cost of labour and materials. We help by building detailed cash flow forecasts, tracking retention across all live projects, timing tax payments to avoid coinciding with quieter billing periods, and identifying appropriate financing options such as invoice finance or asset finance.
Retention is typically 3–5% of a contract value withheld by the client until the end of a defects liability period. Across multiple live projects, the total retention owed to your business can be substantial. We track all retention balances, ensure they are correctly reflected in your accounts, and help you plan the cash flow impact of waiting for retention to be released.
The right structure depends on your turnover, contract types, personal circumstances, and long-term goals. A limited company typically offers tax efficiencies through a combination of salary and dividends, and separates your personal assets from business liabilities. A sole trader structure is simpler to run but may be less tax-efficient at higher income levels. We model the tax position for your specific situation so you can make an informed decision — this is one of the most financially impactful choices for any construction business owner.
We provide CIS registration and monthly returns, VAT domestic reverse charge management, project-based job costing, cash flow forecasting, construction payroll across multiple sites, subcontractor verification, capital allowances for plant and machinery, year-end accounts, corporation tax, and strategic business advisory. We serve main contractors, subcontractors, property developers, and sole traders across Oxfordshire and the rest of the UK.
We are here to help.
Book a free discovery call to explore how we can support your construction business.Contact us