Most tradespeople we work with are excellent at what they do on site. The paperwork side — Self Assessment, CIS returns, VAT, keeping records between jobs — is usually the part that falls behind. It’s not laziness; it’s just that running a busy trade business doesn’t leave much room at the end of the day for bookkeeping.
At Hayes Chartered Certified Accountants and Tax Consultants, we work with tradespeople across London and the UK — builders, joiners, plasterers, decorators, tilers, roofers, groundworkers, and more. We take the financial administration off your hands and make sure everything is right with HMRC.
If you work in construction — on building sites, refurbishments, fit-outs, or any construction-related project — the Construction Industry Scheme (CIS) probably applies to you. CIS is HMRC’s tax deduction scheme for the construction industry, and it affects both contractors and subcontractors.
As a subcontractor, the main contractor is required to deduct either 20% or 30% from your payments (depending on your registration status) and pay it directly to HMRC. Those deductions are not the final tax — they’re advance payments against your annual tax bill. At the end of the year, when you file your Self Assessment return, the total CIS deductions are offset against your actual tax liability. If more was deducted than you owe, you get a refund. If less was deducted, you pay the balance.
Many subcontractors either don’t file a return at all (and never claim the refund they’re owed) or file incorrectly (and miss legitimate expense deductions that would reduce what they owe). Both are problems we see regularly.
As a contractor — if you engage and pay subcontractors — you have your own CIS obligations: verifying subcontractors with HMRC before first payment, applying the right deduction rate, submitting monthly CIS returns, and issuing payment and deduction statements. Missing these deadlines results in penalties.
Tradesperson expenses often include significant capital items — vans, specialist tools, trailers, power tools. These are generally claimable, but the mechanism varies:
Keeping purchase receipts and records of what equipment is used for is essential. Estimated figures without records are harder to defend.
If your taxable turnover exceeds £90,000 in any rolling 12-month period, you must register for VAT. In London especially, busy sole traders in construction can reach this threshold faster than they expect — particularly on a project with high material costs that are billed through to the client.
The VAT Flat Rate Scheme is available to smaller businesses below £150,000 turnover and can sometimes simplify VAT administration. Whether it’s more beneficial than standard VAT accounting depends on your specific cost structure.
For tradespeople involved in new builds, conversions, or certain renovation projects, the VAT treatment of the work itself may be zero-rated or reduced-rated — which affects both how you charge clients and how you reclaim input VAT.
Yes. CIS deductions are not your final tax — they’re advance payments. Filing a return allows those deductions to be credited against your actual liability. If more was deducted than you owe, you’ll receive a refund. Many tradespeople are owed money they’ve never claimed.
Yes. All income — whether paid in cash, by bank transfer, or by card — is taxable and must be declared. HMRC has multiple ways to cross-check declared income against third-party data.
You need to register as a CIS contractor with HMRC, verify each subcontractor before first payment, apply the correct deduction rate, submit monthly CIS returns, and issue payment/deduction statements. We handle all of this for contractor clients.
If it has exceeded or is likely to exceed £90,000 in a rolling 12-month period, yes. Monitor it carefully — and speak to us before you hit the threshold if possible, so we can plan the transition.
Come to us. The longer it goes unfiled, the more HMRC penalties accumulate. Voluntary disclosure is always treated better than HMRC finding it first. We help clients get up to date in an orderly way.
There are a lot of ways you can contact Hayes Chartered Certified Accountants and Tax Consultants in London (HCCA),
Call : 0208646 0800
WhatsApp : 07429584191
Email : info@hayes-accountants.co.uk
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Stop juggling your finances alone. Hayes Chartered Certified Accountants and Tax Consultants offers everything a business or individual needs under one roof — Bookkeeping, VAT returns, payroll, self-assessment tax returns, pension auto enrolment, year end accounts, corporation tax, capital gains tax, CIS tax returns, tax rebates, landlord taxation, management accounts, cash flow management, budgeting and forecasting, tax advisory, company formation, registered address, company secretarial services, and Making Tax Digital (MTD) compliance. One team. Every service. Zero hidden fees.
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