Our Services
Our fully managed service keeps your project compliant, your numbers accurate, and your deadlines met, so you can focus on building with confidence.
CIS
We keep you square with the taxman.
Staying compliant shouldn’t take you away from the job site. We ensure your filings are flawless and submitted right on schedule, keeping HMRC happy and giving you total clarity on your cash flow.
If you’re a subcontractor, we’ll keep your paperwork sorted.
If you’re a contractor, we’ll take care of the heavy lifting—including verifying your workforce and issuing all your monthly subcontractor statements.
Payroll
The biggest challenge in construction payroll is managing two entirely different types of workers simultaneously:
Standard Employees: Paid through traditional PAYE (Pay As You Earn). You deduct regular Income Tax and National Insurance (NI) from their wages, pay pension contributions, and provide holiday/sick pay.
Subcontractors: Managed under the Construction Industry Scheme (CIS). They are self-employed, so they don’t get holiday pay or company benefits. Instead, you must verify them with HMRC and deduct either 0%, 20%, or 30% from their labor payments before paying them.
VAT Returns
Introduced to tackle VAT fraud, the Reverse Charge completely changes who accounts for the VAT on a construction invoice.
You do the work, charge the customer VAT, they pay it to you, and you hand it over to HMRC.
If you are a subcontractor supplying construction services to another VAT-registered contractor, you do not charge them VAT. Instead, you state on your invoice that the Reverse Charge applies. The contractor who hired you then accounts for both the input and output VAT on their own VAT return.
Making Tax Digital
Making Tax Digital (MTD) is a UK government plan to change how businesses, sole traders, and landlords manage and file their taxes.
In plain English: HMRC is getting rid of paper records and manual data entry. Instead, you must use compatible software or apps to keep your records and submit your tax returns.
FAQ
When does the reverse charge apply?
The reverse charge applies when a VAT‑registered subcontractor supplies construction services to a VAT‑registered contractor, and the service falls under the Construction Industry Scheme (CIS).Your customer (the contractor) must then account for VAT on that supply in their VAT return instead of you charging VAT.h here
Does reverse charge work at 0%, 5% or 20%?
The reverse charge applies to supplies subject to standard (20%) or reduced rates (such as 5%) of VAT under CIS.If a service is zero-rated (0%), the reverse charge will not apply.
How do I report reverse charge VAT on my return?
If you are the recipient (contractor), you include the VAT you “self-assess” as output tax (Box 1) and also reclaim it as input tax (Box 4) in the same VAT return—assuming the purchase is allowable.As a supplier, your invoice should clearly state that the domestic reverse charge applies and how much VAT is due (or the rate) without adding VAT to the invoice amount.
What happens if I get the reverse charge wrong?
Consistent or deliberate errors could lead to assessments or penalties, but, HMRC may allow a more pragmatic approach for honest mistakes, especially early on, so long as you acted in good faith.
What is the Construction Industry Scheme (CIS)?
CIS is an HMRC scheme that affects payments from contractors to subcontractors in the construction industry.Contractors must deduct tax (usually 20%) from payments to subcontractors (unless they have gross payment status) and pass it to HMRC.Subcontractors file self‑assessments or corporate tax returns and can offset those deductions against their tax liabilities.
Do I need to verify all subcontractors?
Yes, if you are contracting others, you must verify their CIS registration status via HMRC before paying them.
If a subcontractor is not registered, you will need to deduct tax at a higher rate (30%) rather than the standard 20%.
How are self assessments involved?
If you’re a subcontractor (sole trader or in partnership), you’ll file a self assessment each year. You’ll report the income you received (net of CIS deductions) and claim any allowable expenses.If deductions taken under CIS exceed your tax liability, you may get a refund via self assessment.
Expert Guidance for a Complex Industry
We understand CIS, subcontractor payments, reverse charge VAT, project-based cash flow and the challenges contractors face every day. Our specialist knowledge helps keep your business compliant, profitable and focused on growth.