Accounting for Construction Companies UK — CIS, VAT & Bookkeeping
The construction industry has some of the most complex tax and accounting requirements of any sector in the UK. Between the Construction Industry Scheme (CIS), the domestic reverse charge VAT rules, job-costing for individual projects, and managing subcontractor payments, construction businesses need an accountant who understands the industry inside out. ProKeeper provides specialist accounting for construction companies across the UK, keeping you compliant and profitable.
Who We Help in the Construction Sector
- Main contractors and principal contractors
- Subcontractors (sole traders and limited companies)
- Specialist trade businesses (electricians, plumbers, joiners, roofers, etc.)
- Property developers
- Building and civil engineering companies
Construction Industry Scheme (CIS) — Full Support
CIS is a mandatory scheme for businesses in the construction sector. Under CIS, contractors must deduct money from subcontractor payments and pass it to HMRC. The deduction rate is 20% for registered subcontractors, 30% for unregistered ones, and 0% for those with gross payment status.
Our CIS services include:
- CIS registration for contractors and subcontractors
- Monthly CIS return preparation and submission to HMRC
- Verification of subcontractors with HMRC
- CIS deduction statements for subcontractors
- CIS refund claims — if too much has been deducted, we reclaim it through your tax return
- Gross payment status applications — we help qualifying subcontractors apply for gross payment status, improving their cash flow significantly
VAT Domestic Reverse Charge for Construction
Since March 2021, the domestic reverse charge has applied to most VAT-registered construction businesses. Under these rules, the customer (rather than the supplier) accounts for VAT on construction services. Getting this wrong — either applying the reverse charge when you shouldn’t, or failing to apply it when you should — can lead to significant VAT errors and penalties. Our team ensures your VAT is handled correctly under the domestic reverse charge rules at all times.
Job Costing & Project Profitability
Understanding which jobs are profitable and which aren’t is critical in construction. We set up job costing in your accounting software so you can see the revenue, costs, and margin for each project. This gives you the information you need to price jobs correctly and identify where you’re losing money.
Our Construction Accounting Services
- CIS registration, monthly returns, and compliance
- VAT domestic reverse charge management
- Monthly bookkeeping and bank reconciliation
- Job costing and project profitability reports
- Subcontractor payroll (CIS payroll)
- Annual accounts and corporation tax returns
- Self assessment for sole trader contractors
- Cash flow management — construction businesses often have long payment cycles
Construction Accounting Pricing
Our construction accounting packages are tailored to your business size and complexity. Packages start from £150 per month for sole trader subcontractors needing CIS and self assessment support, up to £400+ per month for larger contractors requiring full bookkeeping, payroll, CIS, and VAT management. Contact us for a bespoke quote.
Frequently Asked Questions — Construction Accounting UK
Do I need to register for CIS if I’m a subcontractor?
Yes — if you work in the construction industry and receive payment from a contractor, you should be registered for CIS as a subcontractor. Without registration, contractors must deduct 30% of your payment (rather than 20%) to pass to HMRC. We can register you quickly and sort out any backlog of CIS deductions that should have been claimed back through your tax return.
What is gross payment status and how do I get it?
Gross payment status means contractors can pay you without making CIS deductions — you receive your full payment and account for the tax yourself through your corporation tax or self assessment return. This can significantly improve your cash flow. To qualify, you need to meet HMRC’s business, turnover, and compliance tests. ProKeeper can assess your eligibility and manage the application.