Accounting for Construction & CIS Industry
Comprehensive Financial Solutions for Contractors, Subcontractors & Construction Businesses
Fred Michael & Co LTD delivers specialist accounting services to construction firms – contractors, subcontractors, and those engaged in CIS – with deep expertise in VAT, payroll, project accounting, and cash flow management.
Why We're Ideal for the Construction Sector
CIS Compliance & Deductions:
We handle all CIS administrative work: contractor/subcontractor registrations, subcontractor verification, monthly HMRC returns, and accurate 20–30% tax deductions based on registration status
VAT Reverse Charge Expertise:
Our specialists ensure invoicing and VAT returns comply with the domestic reverse charge rules for construction services: properly invoicing “net of VAT” and ensuring end-customer declarations are in place.
Full Payroll Services:
We manage payroll for workers not eligible under CIS – engaging as PAYE employees – handling RTI, tax, National Insurance, and pension auto-enrolment
Project-Level Accounting:
Detailed job-costing and margin analysis ensures every contract element is tracked; labour, materials, plant, and overheads.
VAT Planning & Flat Rate Scheme Advice:
We assess eligibility and model potential savings under the Flat Rate Scheme while ensuring compliance.
Cash Flow Forecasting:
Align your forecasts with project milestone payments to safeguard liquidity and maintain working capital.
Capital Allowances & Tax Strategy:
Claim reliefs on plant, vehicles, and equipment via Annual Investment Allowance and structured capital allowance planning.
Why Fred Michael as Your Partner
True Sector Knowledge
Our team specialises in CIS, VAT reverse charge mechanics, and construction payroll operations.
Compliance Safeguards
Prevent penalties and errors by ensuring correct invoicing, CIS error-free filings, and PAYE management.
Strategic Financial Reporting
Navigate project margins, cost efficiencies, and labour costs with transparent and actionable sector-specific insights.
Holistic Tax & Cashflow Planning
Optimise VAT schemes, capital allowances, and manage liquidity with forward-thinking financial strategies.
FAQs – Construction & CIS
What is the VAT reverse charge and when does it apply?
The domestic VAT reverse charge requires VAT registered suppliers to issue net-of-VAT invoices to VAT registered customers who re-account the VAT themselves. It applies to standard/reduced rate CIS services, not end-user
How should I invoice under the reverse charge?
Invoices must omit VAT, include VAT amount and phrase like “reverse charge applies—customer to account for VAT,” and must list both parties’ VAT numbers.
Who needs CIS payroll and who doesn’t?
Subcontractors handled via CIS. Workers not qualifying as subcontractors (those on PAYE) must be included in payroll, with tax, NI, and pensions managed accordingly.
How do you manage payroll for such workers?
We run full RTI-compliant payroll: calculate salaries, deduct PAYE & National Insurance, manage pension auto-enrolment, and file to HMRC monthly.
What's the Flat Rate VAT Scheme?
A simplified VAT scheme where you pay a fixed percentage of turnover as VAT. We help assess whether switching makes sense based on your project mix and reverse-charge impact.
How can I claim capital allowances on plant, equipment, and vehicles?
We identify qualifying assets and apply Annual Investment Allowance and other capital allowances to minimise taxable profits and reduce tax bills.
Next Steps
Let us align your accounting with your industry’s demands and give your business the financial clarity, compliance, and strategic insight it needs to thrive.
