Accountants for Construction Businesses
Build a more profitable, better-structured construction business
Construction businesses deal with more moving parts than most. Subcontractors, CIS, VAT reverse charge, retentions, staged payments, supplier costs, payroll, vehicles, equipment and project delays can all affect your cashflow and profit.
Franks helps construction companies get clearer control of their numbers, so you can understand which jobs are profitable, plan for tax, manage cashflow and make better commercial decisions as the business grows.
Whether you are a contractor, specialist trade business, building company or construction firm with multiple teams, we can help you move beyond basic accounts and build stronger financial systems around your business.
Accounting support built around the way construction businesses work
Many construction businesses only find out how profitable a job was after it has finished. By then, the cash has gone, the costs have landed and the next project is already underway.
We help you get better visibility across the business, including project costs, labour, subcontractors, materials, VAT, tax and cashflow. This gives you a clearer picture of what is working, where profit is being lost and what needs to change.
Our support can include management accounts, tax planning, CIS, VAT, payroll, bookkeeping, limited company accounts and regular commercial advice.
More than year-end accounts
A lot of construction businesses only speak to their accountant when accounts or tax returns are due. That is too late to make meaningful changes.
Franks works with clients throughout the year, helping you understand the numbers while they can still influence your decisions.
Our support can include:
- Limited company accounts
- Corporation tax returns
- Bookkeeping
- VAT returns
- CIS returns
- Payroll
- Management accounts
- Cashflow forecasting
- Tax planning
- Director salary and dividend planning
- Regular business advice
- Software and reporting improvements
Common construction accounting problems we help solve
Unclear project margins
A job can look profitable on paper but still leave less cash than expected once labour, materials, subcontractors, equipment, delays and overheads are included.
We help you track costs more clearly, review margins and understand which types of work are genuinely profitable.
Cashflow pressure between jobs
Construction businesses often have money tied up in materials, labour, retentions and unpaid invoices. This can create pressure even when the business is busy.
We help you forecast cashflow, plan around tax bills and make sure you understand what money is actually available.
CIS and subcontractor payments
CIS can create admin pressure and cashflow issues if it is not managed properly.
We can help with CIS returns, subcontractor verification, deductions, monthly reporting and keeping your records in order.
VAT and domestic reverse charge
VAT in the construction sector can be complicated, especially where the domestic reverse charge applies.
We help you understand your VAT position, avoid common errors and make sure your systems are set up correctly.
Payroll, staff and site teams
As your business grows, payroll, pensions, staff costs and subcontractor arrangements become more important.
We help you manage payroll, understand employment costs and make better decisions around taking on staff, using subcontractors or building site teams.
Retentions and staged payments
Retentions and staged project payments can distort your view of cashflow and profit.
We help you build this into your reporting, so you are not making decisions based only on bank balance.
Expert CIS Accountants
Get expert assistance with CIS (Construction Industry Scheme) compliance for contractors and subcontractors. Learn how CIS works, deductions, and tax support at Frank’s Accountants.
At Franks Accountants, we pride ourselves on being more than just accountants.
We are dedicated tax advisors with extensive experience in the construction industry.
Our team understands the unique financial challenges faced by contractors and subcontractors and is committed to helping you manage your finances effectively.
Construction Industry Scheme (CIS)
If you’ve been working in the construction industry for a while, you’re probably familiar with the Construction Industry Scheme (CIS). It’s an essential part of UK tax law designed specifically for contractors and subcontractors, ensuring that the correct amount of tax and National Insurance is paid to HM Revenue & Customs (HMRC).
CIS requires contractors to deduct money from subcontractors’ payments before they are made. These deductions are passed directly to HMRC and contribute towards the subcontractor’s tax and National Insurance obligations. Understanding how to navigate the complexities of CIS can be daunting, but with expert help from Frank’s Accountants, you can ensure full compliance while optimising your business’s tax position.
Understanding the rules of the CIS Scheme
The Construction Industry Scheme (CIS) is a set of rules introduced by HMRC for the construction sector, requiring contractors to deduct money from subcontractors to cover their tax and National Insurance contributions. The scheme is designed to reduce tax evasion in the construction industry by ensuring that subcontractors’ tax is paid upfront.
Whether you’re a contractor or a subcontractor, CIS can affect how you manage payments, tax deductions, and your overall cash flow. Our experienced accountants at Frank’s Accountants are here to help you manage CIS correctly and stay compliant with HMRC regulations.
Request A Callback
Who Does CIS Apply To?
CIS applies to:
- Contractors: Businesses or individuals paying subcontractors for construction work.
- Subcontractors: Those carrying out construction work for a contractor.
Even if your main business is not in construction, you may still need to register for CIS if you regularly hire subcontractors for construction work.
CIS Deductions Explained
Under CIS, contractors are required to make deductions from subcontractors’ payments. These deductions, typically 20% or 30%, are sent to HMRC. The amount deducted depends on whether the subcontractor is registered under CIS.
- Registered Subcontractors: Have 20% deducted from their payments.
- Unregistered Subcontractors: Have 30% deducted until they register with HMRC.
These deductions are later credited towards the subcontractor’s annual tax bill.
Why Choose Frank’s Accountants for CIS Support?
At Frank’s Accountants, we offer tailored CIS services for both contractors and subcontractors. Our team understands the complexities of CIS and can help you with:
Our goal is to ensure that you remain compliant while maximising your financial efficiency.
Whether you’re a contractor or subcontractor, managing your CIS responsibilities can be time-consuming and complex.
Frank’s Accountants offers comprehensive CIS services that help you stay compliant and manage your tax obligations with ease.
Contact us today to discuss how we can support you with CIS compliance.
Frequently Asked Questions
Yes. We can help review your bookkeeping systems, software setup and reporting process so you have clearer information on sales, costs, VAT, CIS, payroll and project performance.
Yes. We can help with corporation tax, director salary and dividend planning, VAT, CIS, equipment purchases, vehicle costs and planning for future tax liabilities. The aim is to avoid surprises and help you make better decisions during the year.
Yes. We can support payroll, pensions, staff costs and subcontractor payments. We can also help you understand the financial impact of using employees, subcontractors or a mix of both as your business grows.
Yes. Construction businesses often have cash tied up in materials, staged payments, retentions and unpaid invoices. We can help you forecast cashflow more clearly, plan for tax bills and understand what money is actually available.
Yes. We can help you review project margins by looking at labour, materials, subcontractors, plant, overheads and delays. This helps you see which types of work are genuinely profitable, rather than relying only on turnover or bank balance.
Contractors should keep records of payments made, deductions applied, and CIS returns filed. Subcontractors should keep records of deductions received for their tax return.
Contractors must verify the subcontractor’s CIS status with HMRC before making payments. This can be done online or over the phone.
You can register online through the HMRC website or let Frank’s Accountants handle the registration process for you.
No, CIS deductions should only apply to the cost of labour, not materials or plant hire.
Yes, contractors must file monthly CIS returns to HMRC, detailing the payments made to subcontractors and the deductions taken.
If you’re a subcontractor and don’t register for CIS, your contractor will deduct 30% from your payments instead of 20%. You may also face penalties from HMRC.
Yes, if you have overpaid tax through CIS deductions, you can claim a refund when you submit your annual tax return.
Registered subcontractors have 20% deducted from their payments, while unregistered subcontractors have 30% deducted.
Both contractors and subcontractors working in the construction industry need to register for CIS. Contractors are responsible for deducting tax from subcontractors’ payments.
CIS is a set of rules that require contractors to deduct money from subcontractors’ payments for tax and National Insurance, which is then passed to HMRC.
More questions?
Discover more about our Construction Accountant Services
What We Do
At Franks Accountants, we don’t just offer standard accountancy and taxation services. We’ll provide you with everything you need to add value to, and grow your business.
How We Work
Working with us is not about the ‘quick fix’ of getting your books done at the cheapest possible price, it is about investing in the success of your business with a view to maximising returns.
Why Choose Us
Choosing an accountant for your business is a very personal decision as your accountant will get to know your business inside-out. Therefore, you need someone you can trust who will help grow your business.
Accountancy Software
Advising you on the best accountancy software for your business. We’ll then guide you through the implementation process and provide continued support. We support Sage, Xero, Receipt Bank, Quickbooks, and more!
Switching Accountants
Many clients ask us about the switching process. It really is simple and hassle free. If you have any concerns about how this works, then find out more here.
FAQ’s
Need more information? Here are some common questions asked by our prospective clients. If you can’t find the answer, get in touch, we’ll be happy to help.
