Do you want to understand your numbers and take control of your business? We are specialist accountants and advisers for builders and the construction industry, call us today for a free consultation to see how your business can grow.
Here are just a few of the technical challenges in the construction industry that we can solve:
If you are a subcontractor or work with subcontractors, you must either withhold CIS tax from your payments or claim it back on your tax return.
Under CIS, contractors are legally required to deduct money from subcontractors’ payments and pay it to HMRC. We can verify your subcontractors and help you file your CIS Returns each month.
If you are a subcontractor, we can claim CIS back that you have already paid. We advise on offsetting your CIS tax and when to register for ‘Gross Status’ to save you significant cash flow on payments received.
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In 2021, a new VAT regime arrived for all VAT registered construction businesses in the UK. It means that when the Domestic Reverse Charge (DRC) applies, you need to “zero rate” your sales invoices and effectively charge no VAT. Alternatively, you will receive invoices from subcontractors who charge you no VAT.
We will tell you when and how you can use DRC. And, we can set up your finance software to meet the conditions of the DRC scheme.
When completing your management and end-of-year accounts, you need to report your Work in Progress (WIP). So, For example, if you do a job that will make an estimated £50,000 profit, and at month-end, the job is only 50% complete, you need to recognise a gross profit of £25,000 in your accounts.
WIP accounting is a technical challenge that must be done correctly to properly and accurately manage your accounts, we will advise on the aspects of setting up and maintaining your accounting system.
As you can see from all the issues and complexities, you need an advisor experienced in the Construction Sector. So, get in touch with us today!