Construction and Real Estate

The construction and real estate sectors encompass a wide range of businesses and is one of the UK’s largest sectors. It is also a volatile sector, with fast-changing tax rules combined with general economic uncertainty. Both factors which continues to have an impact on the sector. A specialist construction accountant can help your business flourish.

A dedicated team of construction accountants will help you navigate the often complex regulations that make up the construction industry. Choosing a specialist team of real estate accountants has its own benefits. This includes one-on-one advice and the fact you can then enter into negotiations with complete confidence.

Alexander & Co has detailed knowledge and understanding of this sector. This, together with our expert tax and accountancy skills, means we can add real value to clients in this sector.

We advise a wide range of clients in this sector. This includes commercial and residential developers, contractors, sub-contractors, owners, and construction companies. We also advice civil engineers, surveyors and professional services firms as well as sector-dependent clients. With a detailed understanding of industry-specific issues, we provide specialist services. These include business strategy and corporate finance to accountancy and strategic tax advice. 

The Domestic Reverse Charge for building and construction services was introduced on 1 October 2020. It effects how companies are charge and billed for VAT. Originally scheduled for 1 October 2019, it impact a wide range of companies across the sector. We are well equipped to advise businesses who need to review their arrangements with customers and suppliers.

Services we regularly provide for construction and real estate companies include: 

There are several tax issues that are impacting construction companies more than other sectors. Continued UK market uncertainty is affecting workforce availability. Specific tax requirements such as CIS, which we regularly deal with is an industry-specific issue requiring clear guidance.  

April 2020 changes made to IR35 off-payroll working rules are particularly relevant to the construction industry. This is because of the high proportion of self-employment in the sector. This has significantly impacted many construction companies, who may find themselves liable for self-employed contractors’ tax and National Insurance. The IR35 changes, implemented in April 2020, affects the tax status of contractors. No longer are contractors able to determine their own tax status.

The changes shift this responsibility onto employers. This may then deter employers from taking on contract resource, opting instead for permanent staff. We also have accountants for contractors available, should you as an individual or as a business require our services.

With decreasing profit margins across much of the industry, we frequently advise developers on tax-efficient strategies. This assists with minimising costs and increasing revenue. Providing accurate financial information and forecasting also allows our clients to budget and plan more effectively. 

We often work with developers to utilise available tax reliefs. These including capital allowances and research and development Tax Relief (R&D). The latter regularly obtained for modern methods of construction.

Land Remediation Relief is a generous tax relief pertinent to developers. It provides a deduction of up to 150% for qualifying expenditure incurred by companies in cleaning up land acquired from a third party in a contaminated state. 

Working with many professionals in the sector, including architects and surveyors, we frequently provide advice on company reorganisation. This ensures firms are structured in the most tax-efficient way. We also provide strategic advice on succession planning and exit planning as well as mergers and acquisitions.

Alexander & Co can assist with any such claims to ensure you are taking advantage of all available reliefs.

For more information, call us on 0161 832 4841 or email info@alexander.co.uk. One of our accountants will be in touch.