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Accounting for Construction & Trades: What to Look For

The construction sector operates under the Construction Industry Scheme (CIS), which creates unique compliance requirements. Construction accountants handle CIS registration, monthly returns, subcontractor verification, VAT domestic reverse charge, project-based costing, plant and machinery capital allowances, and the employment status challenges common in the industry.

General guidance reviewed 12 July 2026 ยท How we review content

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Construction & Trades Accounting FAQs

Do I need to register for CIS?

If you work as a subcontractor in the construction industry, you should register with HMRC for CIS to be taxed at 20% rather than 30%. If you engage subcontractors, you must register as a contractor and make monthly CIS returns.

What is the VAT reverse charge for construction?

The domestic reverse charge means the customer accounts for VAT instead of the supplier on specified construction services between VAT-registered businesses. End users and intermediaries are excluded from the reverse charge.

Can I claim capital allowances on tools and vehicles?

Yes. Tools, equipment, vans, and plant qualify for capital allowances. The Annual Investment Allowance covers up to ยฃ1 million of qualifying expenditure. Electric vehicles qualify for 100% first-year allowances.

Looking for Construction & Trades accountants?

Review the questions to ask, then check claimed profiles for explicitly confirmed construction & trades experience.

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