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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vanessa mar2025-07-01Second year in - Stacey truly is the best and amazing to work with. Her patience, warmth and clarity are unmatched. Extremely happy with the service!Trustindex verifies that the original source of the review is Google.Gary Butler2025-06-29After making the booking for a new customer enquiry the process and response from Stacey couldn’t have been better. Stacey was prompt with the return call, took the time to get to know my situation, was knowledgeable and very helpful with information and explaining the next steps. Looking forward to receiving the details for those steps and impressed with professionalism shown from the off.Trustindex verifies that the original source of the review is Google.Dani Avis2025-06-03I met Stacey as a networking event, and I am so bloody glad I did. She is so experienced, so knowledgeable and has helped me massively in such a short amount of time. Answered every question I have (which is a lot) because I generally had no idea what I had to do with tax’s with starting my own business. I feel so at ease now I have her as my accountant and recommend her highly to anyone and everyone!! XxTrustindex verifies that the original source of the review is Google.Living With Leanne2025-04-15Couldn't recommend Stacey enough for everything accounting! She is efficient, informative, supportive and trustworthy. She supports my small business and ensures that everything runs smoothly when it comes to submitting my tax returns which I am so grateful for! Thank you Stacey!!Trustindex verifies that the original source of the review is Google.Chloe Turner2025-04-14My first year working as self employed and Stacey has been so helpful and supportive, making my first tax year as a small buissness straightforward and stress free. Thankyou so much! ♡Trustindex verifies that the original source of the review is Google.Sam Davis2025-04-14Brilliant service from start to finish and would highly recommend, will certainly be using swan books for many years to come. ThanksTrustindex verifies that the original source of the review is Google.Emma Cook2025-04-09Stacey is the best accountant we have would definitely recommend her to anyone, she’s so friendly and very helpful and always there to help us . Thank you for your hard work xxTrustindex verifies that the original source of the review is Google.Emma Spencer2025-04-09I have used Stacey’s services now for the past few years. She has been fantastic, always have a prompt reply with any queries. Highly recommend!Trustindex verifies that the original source of the review is Google.Ted Nellie2025-03-28I own a preschool that Stacey has helped me to manage and completely turn around to become thriving when I wanted to give in. She is so personable and always very reliable and honest. I wish I had met her at the beginning of my business but thank goodness I have found her now. Thank you Stacey for being a breath of fresh air and making the accounts so understandable!!Trustindex verifies that the original source of the review is Google.Samantha Harvey2025-03-13Stacey is honestly the loveliest most informative person, I was completely clueless about everything and she has taken her time to explain things and reassure me on anything I’m unsure about. Thank you so much! Highly recommend x
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