Sector

Costing, stock and capital allowances for businesses that make things

For small manufacturers, engineering firms and workshops where margin is decided on the shop floor.

What makes manufacturing different

Profit depends on knowing what each unit costs

Raw materials, work in progress and finished goods all need valuing, and each is a different calculation. Without proper costing you know the total profit at the year end but not which products earned it.

Plant and machinery is usually the largest spend, and full expensing or the annual investment allowance can wipe out a Corporation Tax bill in the year of purchase. Process improvements often qualify as research and development. Exports bring customs, import VAT and zero rating evidence to keep.

Who we act for

Every kind of manufacturing business

Small manufacturers

Batch and made to order production where costing drives pricing.

Engineering firms

Project based work with long lead times and stage payments.

Product businesses

Where manufacturing is outsourced but stock and margin still have to be tracked.

Workshops and fabricators

Job based work with materials, labour and machine time to allocate.

What we handle

Stock, plant, exports and KPIs

Stock and work in progress valuation at each stage, and product costing that includes labour and overhead rather than just materials, so you can price on real margin.

Capital allowances including full expensing, the annual investment allowance and the structures and buildings allowance. Research and development records for process and product development, prepared as the work happens.

Export and import VAT, postponed accounting and the evidence zero rating requires. Asset finance and hire purchase accounted for correctly. Management accounts with production KPIs, and payroll for shift workers including overtime and shift premiums.

Packages

Company Growth £179 a month
Company Premium £299 a month with management accounts
Virtual Finance Department from £450 a month
Cloud set up and migration from £150

See pricing

Full expensing changes the timing

Companies can deduct the full cost of qualifying new plant and machinery in the year of purchase. Planning a large purchase either side of a year end can move a significant amount of tax, so it is worth a conversation before you order.

Questions

Frequently asked

How do I value work in progress?

At the cost of materials, labour and a proportion of production overhead incurred to that point, not at selling price. Consistency between years matters as much as the method.

What is full expensing?

A 100% first year deduction for companies on qualifying new main pool plant and machinery, with 50% on special rate assets. It replaced the super deduction and is now permanent.

Does process improvement qualify for R&D relief?

It can, where you are resolving genuine technical uncertainty rather than applying known techniques. The records made at the time are what determine whether a claim stands up.

What evidence do I need for zero rated exports?

Proof the goods left the UK within the time limit, usually shipping documents and customs evidence, kept for six years. Without it HMRC can assess the VAT.

Can you produce costing reports?

Yes. Product and job costing with margin analysis is included in Company Premium and the Virtual Finance Department.