Managing finances in the construction industry is no small task. Between CIS deductions, VAT Reverse Charge, and long payment cycles, every detail matters. Whether you’re a contractor managing subcontractors in Birmingham or a property developer working on joint ventures in Manchester, precise accounting is essential to stay compliant and profitable.
At Pearl Lemon Accountants We provide accounting services designed specifically for construction companies. From optimising Work-In-Progress (WIP) reports to handling payroll and tax planning, our expertise ensures your finances are structured for success. Let’s make your projects more profitable.
A Framework for Construction Accounting That Works
Construction companies face distinct financial pressures. From handling subcontractor payments to navigating cash flow challenges, effective accounting is more than just keeping track of numbers—it’s about ensuring that your business remains competitive.
CIS Compliance Without the Stress
For contractors and subcontractors, the Construction Industry Scheme (CIS) is a non-negotiable obligation. HMRC statistics show that 20% of UK construction firms faced penalties in 2023 due to CIS miscalculations or late submissions.
- Case Example: A subcontractor in Leeds recovered £12,000 in over-deducted CIS taxes after we reviewed their filings.
- We implemented an automated CIS filing system for a Liverpool contractor, reducing admin errors by 25% and ensuring HMRC compliance.
Simplifying VAT Reverse Charge Rules
Since the VAT Reverse Charge was introduced, confusion around its implementation has caused cash flow disruptions for many businesses. It shifts VAT liability from subcontractors to contractors, requiring meticulous invoicing and compliance.
- Helped a civil engineering firm in Nottingham avoid £15,000 in VAT penalties by creating clear invoicing templates tailored to Reverse Charge requirements.
- Provided workshops for a Manchester construction company, reducing VAT-related queries by 30% within three months.
Accurate Work-In-Progress (WIP) Reporting
WIP reporting ensures your ongoing projects are accurately reflected in financial statements, helping with cash flow, tax calculations, and profit assessments. Mismanaged WIP reports can lead to incorrect tax filings and strained finances.
- Enabled a property developer in Bristol to improve WIP accuracy by 35%, helping them secure financing for a £2 million project.
- Developed bespoke WIP tracking dashboards for a London-based builder to monitor project profitability in real-time.
Payroll Solutions for Complex Construction Teams
Construction businesses often have a mix of PAYE employees and CIS-registered subcontractors, creating challenges for payroll management. Accurate payroll processing ensures compliance and maintains workforce morale.
- Implemented payroll systems for a Birmingham-based contractor managing 50+ workers, reducing payroll processing time by 20%.
- Assisted a Sheffield construction firm in handling mixed PAYE and subcontractor payments, cutting payroll errors by 40%.
Frequently Asked Qustions
CIS deductions depend on tracking subcontractor payments and allowable expenses. We provide automated tools and regular reviews to ensure accuracy and avoid HMRC penalties.
The VAT Reverse Charge shifts VAT liability to the contractor. We create compliant invoicing templates and provide guidance on accurate reporting.
Yes, we offer tools and advisory services to improve WIP tracking and ensure it aligns with your financial reporting and tax obligations.
You can claim deductions for plant and machinery, subcontractor costs, travel expenses, and office-related costs. Our systems ensure all allowable expenses are included.
We integrate payroll systems to manage both PAYE employees and CIS subcontractors, ensuring compliance with HMRC regulations.
Build a Stronger Financial Foundation for Your Construction Business
Every successful build starts with a strong foundation—and the same goes for your finances. With our expertise in CIS compliance, VAT Reverse Charge, and WIP reporting, your business can focus on delivering projects while we handle the numbers.
Lay the Groundwork for Financial Success – Book Your Free Construction Accounting Review Today.
