Construction
A profitable job can still strain cash flow. We manage CIS and the VAT reverse charge, track profit job by job and keep cash moving through stage payments and retentions.
Contractors and specialist subcontractors
Building firms of every size working within the Construction Industry Scheme.
- Main contractorsBuilders and developers running projects through their own subcontractors, with job costs, retentions and CIS to manage.
- Specialist subcontractorsGroundworks, electrical, mechanical and finishing firms, from sole traders to limited companies.
Where profit and cash get stuck
The Construction Industry Scheme
Verifying subcontractors, making deductions and filing monthly returns on time.
Job profitability
Cost overruns that go unnoticed until the job is complete.
Cash timing
Retentions and stage payments received months after the work is done.
VAT reverse charge
Rules that change who accounts for VAT on construction services.
Where we make the difference
One dedicated team for your books, accounts, tax and advice, shaped around how construction works.
- Monthly returns and payrollSubcontractor verification, CIS deductions, monthly returns and payroll, filed on time.
- Job costingProfit tracked job by job against budget, so overruns are caught early.
- VAT and tax complianceThe reverse charge, VAT returns and tax planning, handled correctly.
- Cash flow forecastingRetentions and stage payments mapped month by month, so you know when cash will arrive.
Our latest thinking
- Growth and advisoryTaxCash flow in construction: stage payments, retentions and the CIS squeezeInsight2 min read2 min read
- TaxCIS for subcontractors: getting deductions back, and applying for gross paymentGuide2 min read2 min read
- TaxThe VAT reverse charge in construction: who charges VAT, and who does notGuide2 min read2 min read
Frequently asked questions
What is the Construction Industry Scheme (CIS)?
It is HMRC’s scheme for payments in construction. Contractors take a deduction from the labour part of each payment to a subcontractor, 20% if the subcontractor is registered and 30% if not, pay it to HMRC and file a monthly return. Subcontractors set the deductions against their own tax, or reclaim them through payroll if they trade as a company. We run CIS for contractors and make sure subcontractors get every deduction back.
Read: CIS for contractors: the monthly routine that keeps penalties awayHow can I get paid without CIS deductions?
By applying for gross payment status, which requires your business to pass a turnover test and have a clean record of filing and paying on time. HMRC can also remove the status immediately, with a five-year ban on reapplying, if a business knew or should have known about fraud in its supply chain. We help you apply, keep your record clean and check the people you work with.
Read: CIS for subcontractors: getting deductions back, and applying for gross paymentWhat is the VAT domestic reverse charge?
For most building work supplied between VAT-registered businesses in the CIS, the customer accounts for the VAT rather than the subcontractor. Your invoices must say so, and many subcontractors find they reclaim more VAT than they pay. It does not apply to work for end users, such as homeowners. Getting it wrong on invoices is common, so we check how it applies to each customer.
Read: The VAT reverse charge in construction: who charges VAT, and who does notHow do I stop cash getting stuck in retentions?
By recording every retention, when it is due for release and what has to happen first, and chasing it on time. Combined with job costing and applications for payment on schedule, that keeps money you have already earned from sitting with the main contractor. We set this up in your monthly bookkeeping.
Read: Cash flow in construction: stage payments, retentions and the CIS squeezeTalk to us about construction
Tell us about your business. We will reply within one working day and arrange a call with the people in our team best placed to help.