Construction businesses operate in one of the more complex tax and accounting environments of any sector. High transaction volumes, subcontractor relationships, fluctuating VAT treatment, and the intricacies of the Construction Industry Scheme create a compliance burden that demands specialist knowledge — knowledge that is rarely available within the finance function of a construction company itself.

We act for construction companies of varying sizes, bringing to each engagement the technical depth that the sector requires. Our work in this area covers the full range of compliance and advisory matters: internal controls and accounting systems, benefits in kind, corporation tax, VAT and the multiple rates applicable to construction activity, and the operation of CIS — including obligations around verification, monthly returns, and the treatment of deductions for both contractors and subcontractors.

Land Remediation Relief

For construction companies acquiring contaminated land from a third party, Land Remediation Relief offers a significant and often underutilised tax incentive. Qualifying expenditure on the clean-up of contaminated or derelict land attracts a 150% deduction for corporation tax purposes — meaning that for every pound spent on qualifying remediation activity, one pound fifty is deductible against profits.

For loss-making companies, the relief can be surrendered in exchange for a repayable tax credit, providing a direct cash benefit at a time when it is often most needed. The conditions and qualifying expenditure categories require careful assessment, and the value of the relief makes it well worth establishing at the outset of any relevant project whether a claim is available.

VAT in construction

Few areas of VAT are as technically demanding as construction. The correct rate — standard, reduced, or zero — depends on the nature of the work, the type of building involved, and in some cases the intended use of the completed structure. Errors in VAT treatment on construction contracts can be costly in both directions, and HMRC takes a close interest in the sector. We advise construction clients on the VAT treatment of their projects as a matter of course, ensuring that the correct position is applied consistently and that any available zero or reduced-rating is properly claimed.

Contact us

If you would like to discuss how we can support your construction business, please get in touch. We are happy to outline the specific ways in which we can add value before any formal engagement begins.