Accountants for Construction & Property Businesses in Hertfordshire
The construction and property sector operates under some of the most complex tax rules in the UK — from the Construction Industry Scheme (CIS) and the VAT Domestic Reverse Charge, to Stamp Duty Land Tax (SDLT) planning and Capital Gains Tax on development profits. Getting these right requires not just a good accountant, but one with genuine sector expertise.
CoreAcc has been working with construction businesses, property developers, landlords, and property investors across Hertfordshire and North London since 2011. We understand the cashflow pressures of the construction sector, the complexity of CIS compliance, and the opportunity — often missed — to legitimately reduce tax on property profits through careful planning.
Construction Industry Scheme (CIS) Compliance
CIS is a mandatory HMRC scheme that governs how contractors pay subcontractors working in the UK construction industry. Under CIS:
- ✓Contractors must deduct 20% or 30% from subcontractor payments and pass this to HMRC
- ✓Subcontractors with gross payment status receive payments without deduction
- ✓Monthly CIS returns must be submitted to HMRC by the 19th of each month
- ✓Annual reconciliation is required for subcontractors' use in their self-assessment returns
CIS errors are extremely costly. Paying unverified subcontractors, applying the wrong deduction rate, or missing a monthly return can result in significant HMRC penalties. We handle the entire CIS process for our construction clients, ensuring full compliance and accurate records.
VAT Domestic Reverse Charge for Construction
Since March 2021, the VAT Domestic Reverse Charge (DRC) has fundamentally changed the VAT accounting between contractors and subcontractors in construction. Under DRC, the customer (contractor) accounts for the VAT rather than the supplier (subcontractor) — meaning subcontractors no longer charge VAT on their invoices for qualifying services. This has significant cashflow implications and compliance risk for businesses that get it wrong. We ensure our construction clients apply the DRC correctly and consistently.
Property Development Tax Planning
Property developers face a uniquely complex tax environment. Profits from development activities are generally subject to income tax or Corporation Tax (not Capital Gains Tax) if the intention is to sell the developed property. However, with careful structuring, it may be possible to reduce the effective tax rate significantly. Key areas we advise on include:
- ✓Optimal trading entity structure for development activities (individual, partnership, LLP, or limited company)
- ✓SDLT planning, including multiple dwellings relief, non-residential rates, and the mixed-use concession
- ✓VAT on construction — zero-rating for new residential builds, the reduced rate for residential conversions
- ✓Capital allowances on commercial property — often significantly under-claimed
- ✓Base cost apportionment and indexation for long-held development land
- ✓Rollover relief for business asset replacement
Landlord Tax Planning
Buy-to-let landlords in the UK face an increasingly challenging tax environment:
- ✓Section 24 finance cost restrictions mean mortgage interest is no longer fully deductible — instead, a 20% tax credit applies, which significantly impacts higher and additional rate taxpayers
- ✓The 3% SDLT surcharge applies to additional residential property purchases
- ✓Capital Gains Tax on residential property disposals is payable within 60 days of completion
- ✓Beneficial interest declarations and property-sharing between spouses or civil partners require a Form 17
For landlords with growing portfolios, we frequently advise on whether incorporation (transferring properties to a limited company) would be beneficial — a complex decision that depends on individual circumstances, mortgage positions, and long-term intentions. We model the full tax position before recommending any action.
Who We Work With
- ✓Building contractors and subcontractors (residential and commercial)
- ✓Property developers (ground-up and conversion)
- ✓Buy-to-let landlords and HMO operators
- ✓Property investors and portfolio holders
- ✓Estate agents and letting agencies
- ✓Architects, surveyors, and construction consultancies
Frequently Asked Questions
Do I need to register for CIS as a subcontractor?
If you work as a subcontractor in the construction industry, you should register for CIS with HMRC. Without registration, contractors must deduct 30% from your payments (rather than the standard 20%), which significantly impacts your cashflow. If you have a strong tax compliance history, you may also be eligible for gross payment status (0% deduction), which we can help you apply for.
Can I claim back CIS deductions on my tax return?
Yes. CIS deductions are treated as advance payments toward your Corporation Tax (for limited companies) or income tax (for sole traders and partnerships). They are offset against your tax bill when you file your annual return, and if deductions exceed your liability, HMRC will refund the difference. We track and reconcile all CIS deductions as part of our service to ensure you recover every penny owed.
Is it worth incorporating my property portfolio into a limited company?
It depends heavily on your specific circumstances — mortgage rates, personal tax rate, future plans, and the age of your portfolio. For higher-rate taxpayers with significant mortgage finance, incorporation can offer substantial tax savings over time. However, there are SDLT, CGT, and mortgage-related costs to consider on transfer. We model the full lifetime tax position for any client considering this step before making a recommendation.
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