Construction Industry Scheme (CIS) Accountants
Build on a solid foundation, with expert bookkeeping tailored to your needs.
Accounting for the self-employed in the construction industry comes with its own set of challenges and requirements. Here are some key steps and considerations for accounting in the construction industry as a self-employed individual:
- Business Structure: Decide on the most suitable business structure. Many self-employed individuals in the construction industry operate as sole traders, but you might also consider forming a limited company for liability protection and tax advantages.
- Business Bank Account: Open a separate business bank account to keep personal and business finances separate. This simplifies accounting and tax reporting.
- Income Tracking: Keep meticulous records of your income sources, which may include payments from clients, subcontracting work, or any other revenue streams.
- Expense Tracking: Maintain a record of all business-related expenses, such as materials, tools, equipment, fuel, vehicle maintenance, insurance, subcontractor payments, and permits.
- Receipts and Invoices: Keep detailed records of invoices sent to clients and receipts for expenses. This documentation is essential for tax purposes and for verifying deductions.
- Accounting Software: Consider using accounting software such as QuickBooks, Xero, or specialized construction accounting software to manage your finances, track income and expenses, and generate financial reports.
- Tax Obligations: Be aware of your tax responsibilities. In the UK, this includes paying income tax and possibly Value Added Tax (VAT) if your income exceeds the threshold. Consult with a tax professional or accountant to ensure you meet all tax requirements.
- Construction Industry Scheme (CIS): If you’re a subcontractor, you may need to register for the Construction Industry Scheme. Under CIS, your clients must deduct tax from your payments, and you’ll need to report these deductions to HM Revenue and Customs (HMRC).
- Insurance: Consider insurance, such as public liability insurance, to protect your business from potential claims or accidents on the construction site.
- Self-Assessment: As a self-employed individual, you’ll typically need to complete a Self-Assessment tax return. This is where you report your income and expenses and calculate the tax you owe. The deadline for this is usually January 31st for the previous tax year.
- Professional Advice: Given the complexity of accounting in the construction industry, it’s advisable to consult with an accountant or tax advisor who specializes in construction. They can help you optimize your financial management and tax strategies.
- Record Keeping: Maintain a well-organized filing system for all financial documents to make it easier to access information when needed, especially for potential tax audits.
Effective accounting is crucial for the financial health and compliance of your construction business. Staying informed about industry-specific regulations and tax requirements is essential, and professional guidance can be valuable to ensure you’re managing your finances correctly.
Why Choose Swan Books?
Swan Books brings over 17 years of trusted accounting experience in construction. We don’t just see numbers; we see local businesses thriving and communities growing. We have many accounting clients in the construction industry, and they often commend our friendly, professional, and approachable style. Beyond mere testimonials, our track record of success and our commitment to ensuring businesses flourish stands as our proud testament. Discover the Swan Books difference today.
There’s a reason we have nothing but 5 star reviews on Google.
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Charlie Baxter2025-02-06Stacey has been my accountant for 2 years now after having returned from setting up an online business in Australia and I can't recommend her enough! As each tax deadline approaches, she has been incredibly helpful, taking the time to explain things I’ve always found difficult to understand. She also tidied up my Xero accounting (a multiple currencies one 🤢), which I had left in a bit of a mess, and made sure everything was in order. On top of that, she helped me identify legitimate business expenses I could claim, which was a huge help. Highly recommend!Trustindex verifies that the original source of the review is Google.Jessica MacMillan2025-01-31Oh, Stacey where do I even begin? I first met Stacey in August 2024, and from that moment, I knew I wanted to switch accountants. Her presence is simply incredible. She’s not only extremely knowledgeable but also genuinely supportive of both you and your business, always striving to achieve the best outcomes. I’m so grateful to have met her and can’t wait to grow my business with Stacey by my side!Trustindex verifies that the original source of the review is Google.Tom Alderton2025-01-28Stacey is the best around 🙂Trustindex verifies that the original source of the review is Google.Sophia Kelleway2025-01-28Stacy was fantastic with helping me sort out my self assessment, she made it so easy for me to understand and she was so easy to talk to. I can't recommend her enough🥰🥰 xxTrustindex verifies that the original source of the review is Google.Alin Lebanov2025-01-28I cannot praise enough the quality of services offered by Stacey @ Swan Books along with her team. This is the first time I'm using their services and I would recommend them 100%. The whole process was so straight forward and the communication crystal clear. Definitely going ahead with them for the next financial year!Trustindex verifies that the original source of the review is Google.Ash2025-01-28Excellent service thanksTrustindex verifies that the original source of the review is Google.Kirbie Shrimpton2025-01-22Stacey & her team are beyond helpful! I could not recommend them more, no question is a silly question! They make being a sole trader EASY! Soooo happy i found them!!Trustindex verifies that the original source of the review is Google.Harry Couture2025-01-14Brilliant service - I had a few complications that were easily ironed out and explained by Stacey. Would recommend to anyone!Trustindex verifies that the original source of the review is Google.Gina Toyer2025-01-08Brilliant and patient accountant highly recommendTrustindex verifies that the original source of the review is Google.Ian Bement2025-01-03Great service, kept fully informed of when things would happen. Can't fault Stacey for the way she dealt with our tax returns. First time using Stacey, everything straight forward and all information presented to us in an easy to read/understand format.
Our Process
Initial Consultation
Understand your business, your challenges, and your aspirations.
Onboarding
Seamless integration with your existing systems, training provided if necessary.
Tailored Solutions
We propose a bookkeeping solution adapted to your unique needs.
Regular Check-ins
Periodic reviews to ensure your financials are on track and to address any concerns.
Year-End Finalisation
Ensure everything is aligned, compliant, and ready for HMRC submissions.
What Can a Sole Trader in the Construction Industry Expense?
Allowable expenses for a sole trader in the construction industry are business-related costs that can be deducted from your business income when calculating your taxable profit. Here are some common allowable expenses in the construction industry:
- Materials and Supplies: The cost of building materials, tools, equipment, and safety gear used in construction projects are fully deductible.
- Subcontractor Payments: Payments made to subcontractors or other tradespeople for work on your projects are allowable expenses.
- Wages and Salaries: If you employ staff, their salaries and associated costs, such as National Insurance and pension contributions, can be claimed.
- Vehicle Expenses: Costs related to your work vehicle, including fuel, insurance, maintenance, and the purchase of the vehicle itself, can be deducted. However, personal use expenses should be adjusted accordingly.
- Tools and Equipment: The cost of purchasing or hiring construction tools, machinery, and equipment is an allowable expense.
- Rent or Workspace Costs: If you rent a construction site or workspace, those rental costs are deductible.
- Insurance: Premiums for business insurance, including public liability insurance and employer’s liability insurance, are generally allowable expenses.
- Professional Fees: Fees paid to architects, surveyors, or engineers for professional services related to your projects are deductible.
- Safety Equipment: Costs for safety equipment, such as helmets, safety vests, and protective gear, can be claimed.
- Office Supplies: Expenses for office supplies, such as stationery, paper, and printer ink used for your business, are allowable.
- Uniforms and Workwear: The cost of uniforms, workwear, and protective clothing for you and your employees is typically deductible.
- Telephone and Internet: Costs for business-related phone and internet services can be claimed, but only the portion used for your business.
- Training and Professional Development: Expenses for training, courses, and certifications related to the construction industry are often deductible.
- Advertising and Marketing: Costs associated with advertising your construction services, creating a website, and running marketing campaigns can be deducted.
- Accounting and Bookkeeping Fees: Fees paid to a professional accountant or bookkeeper to help manage your financial records are allowable expenses.
It’s crucial to maintain detailed records and receipts for all these expenses and any others specific to your construction business. When completing your Self-Assessment tax return, you can deduct these allowable expenses from your total income to determine your taxable profit.
As qualified construction industry accountants, Swan Books can assist you with all of the above. Be sure to get in touch to find out how we can take the hassle out of accounting for CIS Contractors.
Our Pricing
At Swan Books, we tailor our pricing to fit your business’s specific needs. Our bookkeeping services ensure that your business finances stay up-to-date using leading cloud accounting software like Quickbooks or Xero. Whether you prefer monthly or quarterly updates, we keep you informed about your business profits consistently. We cover all areas of bookkeeping, ensuring thoroughness and precision.
The pricing for our bookkeeping services varies based on the volume of transactions each month. For a customised quote and a detailed breakdown, please contact us.
Registration
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Registration of you and your business self employment with HMRC.
Self Assessment Tax Returns
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Preparation of tax calculation, preparation and submission to HMRC and financial statements
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Prices may vary based on your business records. Please get in contact for a free consultation.
Bookkeeping
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Keeping your business finances up to date with cloud accounting software Quickbooks or Xero. Monthly or Quarterly updates providing you updates of business profits. All areas of bookkeeping undertaken.
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Prices vary permitting to volume of transactions each month.
Books Clean Up
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If your accounts are in need of a tidy up and you want to upgrade your internal procedures for easier processes, you have come to the right place!
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Prices vary client by client, please get in touch to discuss further.
VAT Returns
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Quarterly VAT returns prepared and submitted with Making Tax Digital compliant software with all deadlines met.
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Prices start from £175.00 per quarter
Power Hour
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One to one power hour discussing your business accounting and how to make improvements to make your finances run more efficiently within the cloud software of your business alongside training on how to get the best of your software.
Payroll
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All aspects of payroll processes ensuring all tasks are carried out by all deadlines and RTI compliant.
- Weekly or monthly payrolls
- Pension administration completed
- RTI compliant with HMRC
- Payroll year end service and reporting