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 that 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, too: you’ll get one-on-one advice, and can enter into negotiations with complete confidence.
Alexander & Co’s detailed knowledge and understanding of this sector, together with our expert tax and accountancy skills, ideally place us to add real value to the clients we advise in this sector.
Specialist advice from Construction & Real Estate Accountants
We advise a wide range of clients in both sectors, including commercial and residential developers, contractors, sub-contractors, owners, construction companies, civil engineers, surveyors and professional services firms as well as sector-dependent clients. With a detailed understanding of industry-specific issues, we provide a wide range of specialist services from business strategy and corporate finance to accountancy and strategic tax advice.
The Domestic Reverse Charge for building and construction services is scheduled to be introduced on 1 October 2020, which will affect how companies charge and are billed for VAT. Originally scheduled for 1 October 2019, this will impact a wide range of companies across both sectors, where early preparation is key. 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:
- Acquisition and investment finance
- Business structuring
- CIS and employment status
- Company structuring, acquisitions and sales
- IR 35 off-payroll working review
- Land Remediation Relief claims
- Research and Development Tax Credits
- SPV audit compliance
- Tax planning
- VAT and property transactions
How our construction accountants can help your business
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.
The April 2020 changes made to IR35 off-payroll working rules are particularly relevant to the construction industry because of the high proportion of self-employment in the sector. This has the potential to significantly impact 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, which may then deter employers from taking on contract resource, opting instead for permanent staff. It is too early to tell the real impact that the IR35 changes will have on the construction industry, but having a team of experienced construction accountants will stand your business in good stead. We also have accountants for contractors on hand, should you as an individual or as a business, should require their services.
How our real estate accountants can help your property development company
With decreasing profit margins across much of the industry, we frequently advise developers on tax-efficient strategies to minimise costs and increase 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, including capital allowances and research and development Tax Relief (R&D) which is regularly being 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 across a wide range of professional services, including architects, estate agents, planners 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.
Contact our team
Alexander & Co can assist with any such claims to ensure you are taking advantage of all available reliefs.
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