Sector
CIS, reverse charge VAT and books for trades that would rather be on site
For sole trader subcontractors, contractors with a team and construction companies. Monthly CIS handled, reverse charge applied correctly, job costs visible.
What makes construction different
Tax is deducted before you are paid
The Construction Industry Scheme means 20% or 30% is taken from your labour before it reaches you, and has to be reclaimed or set off. Contractors must verify and report every subcontractor every month, whether or not they paid anyone.
The VAT domestic reverse charge moves the VAT accounting from supplier to customer on most construction services between VAT registered businesses. Retentions, stage payments and work in progress make profit hard to see until the job closes.
Who we act for
Every kind of construction business
Subcontractors
Sole traders and companies where CIS is deducted at source, usually producing a repayment each year.
Contractors
Anyone paying subcontractors, with monthly verification, deduction statements and returns to file.
Construction companies
Multi site builders with staff, plant and stage payments to account for.
Developers
Where VAT on conversions and new builds and the trading versus investment question both matter.
What we handle
CIS to job costing
Monthly CIS returns and subcontractor verification, filed on time so the £100 a month penalties never start. CIS suffered reclaimed for sole traders through Self Assessment, or set off against your PAYE bill for companies.
Gross payment status applications and the compliance tests behind them. Domestic reverse charge invoicing set up correctly in your software, with the wording HMRC expects on the invoice.
Job and site costing so you can see margin per project rather than per year. Payroll for employed staff alongside subcontractors, plant and vehicle capital allowances, and the sole trader to limited company transition that most growing trades reach eventually.
Packages
- Sole Trader Plus £69 a month includes CIS returns
- Company Growth £179 a month for contractors with staff
- Gross payment status application quoted as a fixed fee
- Catch up on missed CIS returns from £249 a year
Reverse charge is the most common error we fix
On most construction services between VAT registered businesses, the customer accounts for the VAT. Invoices must say so and must not charge VAT. We see both mistakes weekly, and correcting a year of them is expensive.
Questions
Frequently asked
What is CIS and does it apply to me?
If you are paid for construction work by a contractor, tax is deducted from your labour at 20% if registered or 30% if not. If you pay subcontractors, you are a contractor and must verify, deduct and report monthly.
How do I get my CIS deductions back?
Sole traders claim them through Self Assessment, usually producing a repayment. Companies set them off against PAYE and National Insurance owed each month, with any excess reclaimed after year end.
What is gross payment status?
It lets contractors pay you in full with no deduction. You need a good compliance history, a business bank account and turnover above a threshold. We check whether you qualify and apply for you.
When does the reverse charge apply?
Broadly, on construction services between VAT registered businesses that are reported under CIS, unless the customer is an end user. It does not apply to supplies to homeowners.
What are the penalties for late CIS returns?
£100 immediately, rising with further delay, for every month missed. They accumulate quickly and are one of the most avoidable costs in the sector.
Speak to someone who knows construction
Book a free 30 minute call and we will tell you what matters for your business and what it would cost.
Or just pick up the phone
+44 7456 385980info@taxmesh.co.uk
