Accountants for Construction Companies
Specialist accounting services for UK construction firms and contractors
Financial Experts for the Construction Industry
The construction industry faces unique financial challenges - from CIS compliance and contract accounting to managing complex VAT rules and cash flow pressures. IAK Accountants specialises in providing comprehensive accounting services tailored specifically for construction companies, contractors, and subcontractors across the UK.
Our experienced team understands the construction sector inside out. We help construction businesses maintain compliance, improve profitability, and navigate the financial complexities of an ever-evolving industry. From small contractors to large construction firms, we provide the expertise and support needed to build financial success.
Industry Compliance Expertise
- ✓CIS registration and monthly returns
- ✓Domestic reverse charge VAT compliance
- ✓IR35 and employment status assessment
- ✓Health and safety levy management
- ✓CITB levy and grant claims
Financial Management
- ✓Project profitability analysis
- ✓Work in progress tracking
- ✓Retention and contract management
- ✓Cash flow forecasting
- ✓Performance benchmarking
CIS Compliance Made Simple
The Construction Industry Scheme can be complex and time-consuming. We handle everything:
For Contractors
- • Monthly CIS returns submission
- • Subcontractor verification
- • CIS payment certificates
- • Gross payment status applications
For Subcontractors
- • CIS registration assistance
- • Tax refund claims
- • Offset against tax liabilities
- • Record keeping support
Comprehensive Construction Accounting Services
CIS Management
Complete Construction Industry Scheme compliance including registration, monthly returns, subcontractor verification, and gross payment status applications.
Contract Accounting
Project-based accounting with detailed job costing, WIP tracking, and profitability analysis for each construction contract.
Cash Flow Management
Optimise cash flow with retention tracking, payment application support, and forecasting for construction projects.
VAT & Reverse Charge
Navigate complex construction VAT rules including domestic reverse charge, reduced rates, and reclaim strategies.
Payroll & Compliance
Full payroll services including PAYE, workplace pensions, apprentice levy, and employment status determinations.
R&D Tax Credits
Identify and claim R&D tax relief for innovative construction methods, materials, and sustainable building practices.
Construction Sector Challenges We Solve
Domestic Reverse Charge VAT
Since October 2021, the reverse charge has significantly impacted construction businesses. We ensure you're compliant while managing the cash flow implications:
- •Determine when reverse charge applies
- •Correct invoice formatting
- •End customer notifications
- •Mixed supply management
- •Cash flow planning
- •VAT return preparation
IR35 and Employment Status
Navigate the complex IR35 rules with confidence:
Status Determinations
- • CEST tool assessments
- • Contract reviews
- • Status determination statements
- • Appeal procedures
Compliance Support
- • Payroll setup for deemed employees
- • Tax and NI calculations
- • Documentation requirements
- • HMRC enquiry support
Success Story: Growing Construction Firm
The Challenge
A North London construction company with £3.5m turnover was struggling with CIS compliance, cash flow management, and the new domestic reverse charge rules. They faced potential HMRC penalties and were unable to secure larger contracts due to poor financial reporting.
Our Solution
- ✓Implemented cloud-based job costing system with real-time profitability tracking
- ✓Automated CIS processes saving 15 hours per month in administration
- ✓Restructured VAT processes for reverse charge compliance
- ✓Secured R&D tax credits of £45,000 for innovative building methods
The Result
Improved cash flow by 30%, achieved CIS gross payment status, and won three major contracts worth £2.1m within 12 months. Net profit margin increased from 8% to 14%.
Construction Types We Support
Main Contractors
General builders, project managers, and principal contractors
Specialist Trades
Electricians, plumbers, roofers, and specialist subcontractors
Civil Engineering
Infrastructure, groundworks, and heavy construction
House Builders
Residential developers and new build specialists
Refurbishment
Commercial fit-out and renovation contractors
Plant & Scaffolding
Equipment hire and access solutions providers
Build Your Financial Foundation with IAK
Join successful construction companies across London who trust IAK Accountants to manage their finances and ensure compliance.
Construction Industry FAQs
Do I need to register for CIS?
If you're a contractor paying subcontractors for construction work, you must register for CIS. Subcontractors should also register to benefit from the 20% tax deduction rate instead of 30%. We can handle the entire registration process and ongoing compliance for you.
How does the construction reverse charge affect my business?
The domestic reverse charge applies to most construction services between VAT-registered businesses. It shifts the VAT liability from supplier to customer, significantly impacting cash flow. We help you understand when it applies, ensure compliant invoicing, and manage the cash flow implications.
Can construction companies claim R&D tax credits?
Yes! Many construction companies qualify for R&D tax relief when developing new construction methods, overcoming technical challenges, or implementing sustainable building practices. Claims can be worth up to 33p for every £1 spent on qualifying activities.
How can I improve cash flow in my construction business?
Construction businesses often face cash flow challenges due to retention, payment terms, and upfront costs. We implement strategies including invoice factoring advice, payment application support, retention tracking, and robust credit control procedures to optimise your cash position.
What are your fees for construction company accounting?
Our fees typically range from £300-£1,500 per month depending on company size, number of contracts, and service requirements. This includes bookkeeping, CIS compliance, VAT returns, and management reporting. We offer transparent fixed-fee packages tailored to your specific needs.