AccounTax Zone works with construction companies turning over £0.5m – £15m, meaning we understand:

• contractor cash cycles
• payroll pressures
• VAT complexities
• SPV structuring
• holding company setups
• tax planning for construction directors
• multi-entity group
• shareholder structures
• HMRC clearances

This page is your complete guide on:

Accountant for Construction – what they do, why they matter, and how AccounTax Zone helps construction businesses grow.

CIS (Construction Industry Scheme) – Full Compliance & Tax Efficiency

CIS is one of the most common reasons construction companies face:

• penalties
• enquiries
• tax overpayments
• cashflow problems

We manage everything end-to-end.

CIS for Contractors

We handle:

• Monthly CIS returns
• Verifying subcontractors
• Deduction statements
• Avoiding penalties
• Gross payment status applications
• Reconciling CIS suffered
• Reducing tax through correct CIS treatment
• Preparing contractor documentation for HMRC

CIS for Subcontractors

We ensure you:

• claim CIS refunds fast
• avoid over-deductions
• optimise tax using expenses
• understand what’s allowable
• pay the correct tax based on real income and real costs

CIS Gross Payment Status (GPS)

We help successful construction companies secure GPS, reducing deductions from 20% to 0%.

This gives:

• immediate cashflow improvement
• more working capital
• stronger creditworthiness
• higher growth potential

VAT for Construction – One of the Most Complex Tax Areas

Construction VAT is notoriously complicated, and full of traps.

We guide you through every scenario including:

Domestic Reverse Charge (DRC)

We:

• determine if DRC applies
• prevent cashflow mistakes
• ensure correct VAT treatment
• stop HMRC disputes
• train your team to invoice correctly

VAT on New Builds

We ensure correct zero-rating and avoid over-charging clients.

VAT on Refurbishments & Conversions

Where 5% VAT applies
Where it doesn’t
What qualifies
What HMRC checks

VAT for Developers

Including:

• sale of new dwellings
• commercial to residential conversions
• mixed-use projects
• SPV VAT registration
• Partial exemption
• VAT groups

Get VAT wrong → HMRC penalties + lost profits
Get VAT right → thousands saved legally.

Domestic Reverse Charge (VAT Reverse Charge) for Construction

The Domestic Reverse Charge (DRC), often called the VAT Reverse Charge, is one of the biggest VAT changes to hit the construction sector in years. It applies to most CIS-related construction services and completely changes how VAT is handled between contractors and subcontractors.

Instead of subcontractors charging VAT on their invoices, the contractor becomes responsible for accounting for the VAT directly to HMRC. That means no VAT is added to most labour invoices, and incorrect application can easily lead to:

• inaccurate VAT returns
• cashflow shortages
• disputes between contractors and subcontractors
• HMRC penalties

We ensure DRC is applied correctly on every project by:

• reviewing your invoicing process
• setting up the correct VAT codes in Xero/Sage/QuickBooks
• ensuring subcontractor invoices follow the rules
• checking whether your customer is an end-user (where DRC does not apply)
• correcting historic VAT errors and preventing future penalties

Domestic Reverse Charge is now a permanent part of construction VAT. Getting it right is essential for compliance and cashflow and most construction businesses still get it wrong. We make sure you don’t.

Work-in-Progress (WIP), Job Costing & Project Profitability

Most construction companies struggle because:

• They don’t know which jobs make money
• They can’t see costs in real-time
• WIP is never up to date
• Retentions destroy margins
• Mispricing leads to losses
• Directors don’t know project profitability until the year end

We fix all of this.

We Build Job Costing Systems

Integrating:

• materials
• labour
• subcontractors
• overhead allocation
• plant & machinery costs
• retentions

Real-Time WIP Reporting

You see:

• project profit/loss in real time
• cashflow required
• how far along each job is
• upcoming payments
• retention amounts
• whether variations are profitable

Better Tendering & Pricing

We help you:

• bid accurately
• stop underquoting
• price projects based on costs and risk
• improve margins
• reduce financial surprises

Cashflow Management for Construction

Cashflow is everything in construction.

AccounTax Zone provides:

• Monthly cashflow forecasts
• project-based cashflow modelling
• debtor control
• supplier payment planning
• retention cash modelling
• VAT cashflow planning
• payroll planning
  
• funding guidance
  

We help companies avoid:

• running out of cash
• over-reliance on overdrafts
• late VAT and CIS penalties
• cashflow shocks due to retentions

Tax Planning for Construction Directors

We specialise in ensuring construction directors legally pay the least tax possible by using:

• Salary + dividends optimisation
• Director’s loan account planning
• Company car vs van rules
• S455 tax avoidance
• HMRC-approved benefits
• CIS tax optimisation
• Capital allowances & AIA
• R&D claims (construction innovation)
• SPV structuring
• Using Holding Companies
• Pension/SSAS planning
• IHT & family wealth planning

Most accountants miss £20,000–£200,000 of legal tax savings in construction businesses, we don’t.

Group Structure, SPVs & Holding Companies for Construction Businesses

Construction groups often need:

• SPVs for projects
• Holding companies for asset protection
• Trading subsidiaries
• Joint ventures
• Investment companies
• Property development companies

We structure these properly.

Benefits of a Holding Company

• Protect assets from trading risk
• Move cash tax-efficiently
• Exit planning
• Shareholder protection
• Ring-fencing construction activities
• Facilitating growth

SPVs for Developers & Contractors

SPVs allow:

• project-based financial clarity
• VAT separation
• risk isolation
• bank funding
• joint ventures

We design the structure and obtain HMRC clearances when needed (s138, s701, TiS etc.).

Payroll for Construction: PAYE, CIS, Umbrella, Subcontractors

We manage:

• weekly or monthly payroll
• CIS subcontractor payroll
• umbrella compliance support
• staff onboarding
• holiday pay & CIS compliance
• pension auto-enrolment for site workers
• CIS verification and deductions

Payroll errors are the biggest cause of HMRC audits, we prevent them.

HMRC Enquiry Defence & Compliance

Construction is one of the most scrutinised industries.

We provide:

• HMRC enquiry defence
• VAT investigation support
• CIS audits
• payroll compliance audits
• subcontractor status checks
• record-keeping reviews
• resolution of tax disputes

Our aim: No penalties. No stress. No lost time.

Digital Accounting Systems for Construction (Xero + Job Costing Integration)

We integrate:

• Xero
• Sage
• QuickBooks

These systems automate:

• invoicing
• CIS
• payroll
• job costing
• WIP
• cashflow forecasting
• VAT tracking

Construction accounting becomes real-time, not year-end guesswork.

Case Studies (Examples of Construction Clients We Support)

CASE STUDY 1 – £3.2M Contractor

• Reduced CIS penalties by £3,320
• Implemented job costing → profit increased by 21%
• Secured Gross Payment Status
• Structured holding company for expansion

CASE STUDY 2 – Developer Using SPVs

• Recovered £84,000 in VAT
• Implemented SPV structure for three major projects
• Improved funding approval due to clean financials

CASE STUDY 3 – £1.1M Electrical Contractor

• Set up construction-focused payroll
• Improved cashflow visibility
• Avoided £12,000 HMRC VAT penalty

Our Monthly Packages for Construction Companies

We offer transparent, fixed monthly fees, including:

• Monthly bookkeeping
• CIS returns
• Payroll (CIS + PAYE)
• VAT returns
• Management accounts
• Annual accounts & CT600
• Confirmation statement
• Tax planning
• Cashflow forecasting
• Unlimited support
• Dedicated account manager

We offer a basic plan starting from £60 per month (for micro companies) and the prices increase depending upon the services you want to include in your package.

Contact AccounTax Zone – Your Specialist Accountant for Construction

Whether you’re a contractor, subcontractor, builder, developer or multi-company construction group, we can help you:

• reduce tax
• improve cashflow
• avoid penalties
• scale sustainably
• protect your business through smart structures

Book Your Free Construction Strategy Call

We’ll review:

• your structure
• your tax position
• your cashflow
• your CIS/VAT compliance
• your profitability model

And show you how to save tax legally while growing your business.

Call: 020 3740 7074
Email: info@accountaxzone.com
Website: accountaxzone.com

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