Led by a PwC-Trained Chartered Accountant
ICAEW-accredited advice shaped by 17 years of complex tax and advisory experience — senior-level expertise from day one.
Specialist Construction Accountants: CIS, VAT & Tax Planning
The construction industry sits inside a uniquely demanding financial framework. The Construction Industry Scheme imposes monthly compliance obligations, CIS deductions create persistent cashflow pressure, the VAT domestic reverse charge continues to catch businesses out years after its introduction, and Making Tax Digital is now bringing additional digital record-keeping obligations for sole trader builders and subcontractors.
Consultax are specialist construction accountants who navigate this landscape on behalf of builders, main contractors, subcontractors, developers, and construction businesses of every size. We handle CIS returns, VAT compliance, payroll, tax planning, and year-round book-keeping, so you can spend your time running your business, not worrying about HMRC.
Accountants Committed To Your Success
Reliable, proactive, and results-driven, we apply the same level of dedication to your success that you bring to your business every day.
Insightful Advice That Moves You Forward
We go beyond the numbers to offer guidance that’s tailored, and built for growth.
Personalised Service That Feels Like Partnership
Your goals matter, so we deliver attentive, custom support designed to guide you towards lasting success.
Financial Clarity You Can Fully Trust
We prioritise clear communication, accounting support you can understand and rely on.
Specialist Accounting for Every Business in the Construction Sector
Consultax works with construction businesses at every stage and in every role — from sole trader subcontractors filing their first Self-assessment return, to established main contractors managing complex supply chains and multiple project accounts simultaneously. If your income comes from the built environment, we have the expertise to manage your finances correctly.
As dedicated construction industry accountants and specialist property and construction accountants, we serve:
- Main Contractors
- Subcontractors & Sole Trader Builders
- Limited Company Construction Businesses
- Property Developers
- Housebuilders & Residential Developers
- Construction Trades Businesses
Main Contractors
We manage the complete CIS compliance burden: verifying subcontractors, calculating deductions (20 per cent registered / 30 per cent unregistered), preparing and submitting monthly CIS300 returns by the 19th, issuing deduction statements, and managing HMRC correspondence. From April 2026, nil returns are mandatory every tax month unless inactivity is pre-notified. We also advise on the supply chain fraud provisions requiring contractors to demonstrate they knew, or could not reasonably have known, that subcontractors were failing CIS obligations.
Subcontractors & Sole Trader Builders
We manage the complete Self-assessment or MTD process for subcontractors: reporting gross income correctly, claiming all allowable business expenses, offsetting CIS deductions against the tax bill, and ensuring any repayment owed is received promptly. We also manage CIS Gross Payment Status applications and renewals for subcontractors who prefer to receive payments without deduction.
Limited Company Construction Businesses
We provide a complete limited company accounting service for construction businesses: book-keeping, payroll, monthly CIS credit recovery via EPS or year-end repayment claims, quarterly VAT returns (including the domestic reverse charge), annual accounts, Corporation Tax, and the personal Self-assessment return for each director. One service, one relationship, everything covered.
Property Developers
We advise developers on VAT recovery on development costs, the correct SDLT treatment of site acquisitions, the tax-efficient structure for development activities (sole trader, partnership, limited company, or SPV), and the timing of disposals to manage CGT exposure. We also prepare development project accounts that accurately reflect the financial position of each project throughout its lifecycle.
Housebuilders & Residential Developers
New residential construction is generally zero-rated, allowing housebuilders to recover VAT on materials and services without charging it on sales. We advise on VAT recovery, the correct treatment of conversions and renovations, the DIY housebuilder VAT reclaim scheme where applicable, and VAT returns that correctly reflect all zero-rated and standard-rated supplies on a development.
Construction Trades Businesses
Electricians, plumbers, carpenters, roofers, plasterers, and other trades face CIS as subcontractors and often as contractors too. We provide a complete service from CIS registration and first Self-assessment through to limited company formation, book-keeping, VAT registration and quarterly returns, payroll, and year-round tax planning as the business matures.
CIS in 2026: The Rules, the Changes, and the Cost of Getting Them Wrong
The Construction Industry Scheme is one of the most operationally demanding tax compliance frameworks in the UK. For construction businesses — whether main contractors, subcontractors, or both — CIS creates monthly deadlines, cashflow implications, and from April 2026, significantly enhanced HMRC enforcement powers. A specialist construction accountant who is current on all of these developments is not a luxury. It is a practical necessity.
How CIS Works
Main contractors must deduct tax at source from payments to subcontractors — 20 per cent for CIS-registered and verified subcontractors, 30 per cent for those who are not. Deductions are an advance payment against the subcontractor's annual tax and National Insurance liability. Contractors must verify each subcontractor before payment and file a monthly CIS300 return by the 19th. Late filing penalties start at £100 for the first month and increase for persistent late filing.
What Changed from April 2026
Nil returns are now mandatory every tax month unless inactivity is pre-notified — failure triggers an immediate £100 penalty.
New fraud liability provisions allow penalties of up to 30 per cent of lost tax where a contractor knew or should have known a party in the supply chain was deliberately failing CIS obligations.
GPS cancellation powers are strengthened, with director liability where fraud involvement is identified.
CIS and Gross Payment Status
Gross Payment Status allows a CIS-registered subcontractor to receive full gross payments and settle tax directly through Self-assessment or MTD — a significant cashflow advantage, subject to turnover, compliance, and business tests. Following the April 2026 reforms, HMRC has tightened GPS checks and cancellation powers. We assist with applying for and maintaining GPS: reviewing eligibility, preparing the application, and advising on ongoing compliance.
Construction VAT Is More Complex Than Any Other Sector. We Handle It Efficiently.
VAT in the construction industry has never been simple. The domestic reverse charge, introduced in March 2021, fundamentally changed how VAT flows between businesses in the supply chain. HMRC's enforcement of the reverse charge rules has intensified significantly in 2026. A specialist construction VAT accountant who understands reverse charge VAT, end-user status, zero-rating for residential construction, and the interaction with CIS is the only reliable way to keep your business compliant.
The VAT Domestic Reverse Charge
For most B2B construction supplies between VAT-registered businesses both under CIS, the main contractor accounts for output and input VAT on their own return instead of the subcontractor charging VAT. Subcontractors no longer hold VAT between invoicing and payment — removing a cashflow buffer many relied on. Main contractors' VAT returns become more complex, and the risk of misapplying the reverse charge increases.
When the Reverse Charge Does NOT Apply
Exceptions include end users (confirmed in writing — normal VAT rules apply), zero-rated supplies such as new residential construction, supplies to non-VAT-registered customers, and non-CIS elements of a contract. Misapplying the reverse charge in either direction creates compliance risk. We advise on the correct treatment for every supply.
VAT Scheme Considerations
The Flat Rate Scheme has become less attractive for most construction businesses because reverse charge supplies are excluded from the flat rate calculation. We review your VAT scheme each year and advise on whether Flat Rate or standard VAT accounting produces the best outcome for your supply mix.
HMRC Enforcement in 2026
HMRC is actively increasing VAT compliance checks in construction. Businesses that have incorrectly applied the reverse charge — charging VAT when they should not, or failing to apply it when they should — are receiving assessments and penalty notices. We review our construction clients' VAT position as part of every engagement and advise proactively where we identify risks.
Construction Accounting & Tax Services: Everything in One Place
Every service we provide for construction industry clients is designed around the specific financial structures, compliance obligations, and planning opportunities that construction businesses face — not adapted from a standard small business accounting template.
Monthly CIS Returns & Full CIS Compliance Management
For main contractors: verifying subcontractors, calculating deduction rates, filing monthly CIS300 returns by the 19th (including nil returns from April 2026), issuing payment and deduction statements, and advising on April 2026 supply chain due diligence under the “knew or should have known” fraud provisions. For subcontractors: recovering CIS deductions via Self-assessment, Corporation Tax, EPS, or formal repayment claims, plus Gross Payment Status applications and renewals.
Best for: All main contractors, all CIS-registered subcontractors (sole trader and limited company), and businesses managing both roles simultaneously.
Construction VAT Accountant: Reverse Charge, Registration & Returns
Complete VAT service: correct application of the domestic reverse charge, end-user status reviews, quarterly returns reflecting CIS and non-CIS supplies, HMRC compliance check support, and annual scheme reviews. For developers: VAT recovery, zero-rating of new residential construction, conversions and refurbishments, and the option to tax commercial properties. For those approaching the £90,000 threshold: registration timing and cashflow implications.
Best for: All VAT-registered construction businesses, those approaching the VAT threshold, and property developers managing mixed VAT rate supplies.
Construction Bookkeeping Services: Project-Level Financial Clarity
Our construction bookkeeping covers income and expenditure across multiple projects, supplier invoices, CIS deduction recording, bank reconciliation, and records that make monthly CIS returns, quarterly VAT, and annual accounts straightforward. We configure Xero, QuickBooks, Sage, and FreeAgent for CIS codes and reverse charge VAT correctly from the outset.
Best for: All construction businesses needing accurate, CIS-compliant bookkeeping — sole traders, limited companies, or multi-project operators.
Payroll Services for Construction Companies
Fully managed payroll for construction: weekly, fortnightly, or monthly runs, RTI submissions, auto-enrolment, payslips and P60s, and advice on the distinction between PAYE employees and CIS subcontractors. We ensure correct employer NIC (15 per cent from April 2025, secondary threshold £5,000) and claim Employment Allowance where eligible.
Best for: Construction businesses with employed site workers, mixed PAYE and CIS labour, and payroll complexity beyond standard software.
Tax Planning for Construction Companies — Year-Round Strategy
We identify opportunities including the Annual Investment Allowance (currently £1 million), plant and machinery treatment, R&D tax credits for innovative build methods or materials, capital expenditure timing, and tax-efficient structures for growing businesses. Annual reviews cover structure, retained profits, salary and dividends, pensions, and overall efficiency across income tax, Corporation Tax, VAT, and CIS. See our tax planning services.
Best for: Owner-managed construction businesses, growing contractors reviewing structure, and companies with significant capital expenditure programmes.
MTD Preparation for Construction Sole Traders & Subcontractors
From April 2026, sole trader builders and self-employed subcontractors with gross income above £50,000 must submit quarterly digital updates under Making Tax Digital for Income Tax (threshold £30,000 from April 2027). We assess scope, configure HMRC-compatible software, set up digital records including CIS income and deductions, and manage quarterly submissions and the year-end declaration.
Best for: Sole trader builders and self-employed subcontractors above or approaching £50,000 gross income ahead of April 2026.
Annual Accounts & Corporation Tax for Construction Companies
We prepare statutory accounts reflecting project-based income, work-in-progress, retentions receivable and payable, and CIS positions. We calculate Corporation Tax with full review of capital allowances and reliefs, file with Companies House and HMRC on time, and prepare each director's personal Self-assessment return.
Best for: All limited company construction businesses, from newly incorporated contractors to established multi-project companies.
Construction Subcontractor Self-Assessment Including CIS Deduction Recovery
We prepare complete Self-assessment returns for CIS subcontractors: correctly reporting gross income, applying allowable expenses (materials, tools, van, site clothing, professional fees, home office where applicable), offsetting CIS deductions, and submitting on time. Where deductions exceed liability, we manage the repayment claim and follow up with HMRC.
Best for: All self-employed subcontractors operating under CIS — regardless of trade, income level, or prior filing history.
Why Consultax
Why Construction Businesses Choose Consultax
Specialist construction accountants who understand CIS, reverse charge VAT, and the compliance risks of 2026
We are not a general accounting practice that files a few CIS returns alongside standard small business accounts. Consultax are specialist construction accountants who understand the CIS framework, the VAT domestic reverse charge, the specific tax planning opportunities available to construction businesses, and the compliance risks the sector faces in 2026 — backed by ICAEW accreditation and 17 years of senior financial advisory experience led by a PwC-trained Chartered Accountant.
Our objective is to simplify your accounting so you can spend more time delivering projects and less time worrying about financial administration.
Specialist Construction Industry Knowledge
Practical, proactive advice tailored to builders, contractors, and construction companies — CIS, reverse charge VAT, and sector-specific planning as standard.
Proactive Tax Planning Throughout the Year
We help you stay compliant, improve profitability, and make informed business decisions — not only at year-end.
Reliable Payroll and CIS Management
Dedicated support for growing construction businesses with prompt responses, monthly CIS deadlines met, and payroll handled correctly.
Cloud Accounting for Better Financial Visibility
Secure cloud platforms configured for construction — project-level clarity, CIS codes, and reverse charge VAT handled correctly.
Transparent Pricing with No Hidden Costs
Personal, responsive service with clear, agreed pricing — so you can focus on building your business.
Are You Ready To Get In Touch?
Quick & affordable, avoid errors and penalties, keep your finances organised with our expert accounting services & bespoke packages.
Frequently Asked Questions
Yes, strongly advisable. CIS compliance, the VAT domestic reverse charge, the April 2026 CIS reforms, and the Making Tax Digital transition for sole traders all require specific, current knowledge that a general accountant will typically not have. The financial consequences of getting any of these wrong — HMRC penalties, incorrect VAT assessments, unclaimed CIS deductions, or missed capital allowances — can be material. A specialist construction accountant addresses each of these as a matter of course, not as an afterthought.
The Construction Industry Scheme is an HMRC framework that requires main contractors in the construction industry to deduct tax at source from payments to subcontractors. Main contractors must verify subcontractors with HMRC before making any payment and apply the correct deduction rate — 20 per cent for CIS-registered subcontractors and 30 per cent for those who are not registered. Monthly CIS300 returns must be filed by the 19th of each month. From April 2026, nil returns are mandatory in every tax month. Subcontractors have their deductions credited against their annual tax liability, and can apply for Gross Payment Status to receive payments without deduction.
April 2026 introduced three major changes to CIS. First, nil return obligations became mandatory — contractors must file a CIS300 return in every tax month, even where no payments have been made, or pre-notify an inactivity period. Failure triggers an immediate £100 fixed penalty. Second, new fraud liability provisions were introduced — contractors can now be penalised where they knew, or should have known, that a subcontractor in their supply chain was deliberately failing to pay CIS tax. Third, HMRC gained strengthened powers to immediately cancel a subcontractor's Gross Payment Status where supply chain fraud involvement is identified.
The VAT domestic reverse charge applies to most business-to-business construction supplies between VAT-registered businesses both registered under CIS. Instead of the subcontractor charging VAT on their invoice, the main contractor accounts for the VAT as both output and input on their own VAT return. The subcontractor receives no VAT. Key exceptions include supplies to end users (who are not making further onward construction supplies), zero-rated supplies such as new residential construction, and supplies to non-VAT-registered customers. HMRC is actively enforcing the reverse charge rules in 2026 and issuing assessments where businesses have applied the rules incorrectly.
Yes. For sole trader subcontractors, CIS deductions received are credited against your income tax and National Insurance liability on your annual Self-assessment return (or, from April 2026, through your MTD year-end declaration). Where deductions exceed your liability, a repayment is due. For limited company subcontractors, CIS deductions can be recovered through the company's PAYE scheme each month via an Employer Payment Summary, or through a formal repayment claim after the year end. We manage this process for all of our construction subcontractor clients.
Ready to Work With Construction Accountants Who Know Your Industry Inside Out?
The construction industry is one of the most compliance-intensive sectors in the UK tax system. The Construction Industry Scheme, the VAT domestic reverse charge, the April 2026 reforms, Making Tax Digital for sole traders, and HMRC's increasing enforcement focus all demand a specialist — not a general accountant who handles construction work alongside a hundred other business types.
Consultax are specialist construction accountants providing CIS compliance, VAT for construction businesses, payroll, book-keeping, Self-assessment for subcontractors, tax planning for construction companies, and year-round financial support for builders, contractors, developers, and construction businesses of every size.
Your goals. Our focus. Accounting with purpose.
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