What our clients say
“One thing I like is the practical, no nonsense advice”
Rob Doubtfire of CFES, a provider of construction, facilities management, and engineering services for the public and private sectors, provides an insight into what was important to him when choosing an accountant and why he selected Nichols & Co. for his outsourced accounting services.
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Frequently Asked Questions
We understand that you might have lots of questions when looking for an accountant. For this reason, we have compiled a list of frequently asked questions for you, which we hope will be helpful. However, if you have any further questions, please contact us.
While a general accountant will perform the basic needs of accounting services, they will likely lack the specialised knowledge and experience that a construction accountant would bring to the table.
Legislation in the construction industry is always evolving to keep up with the industry’s fast pace. If you want to stay in compliance with these everchanging regulations, it’s best to work with a construction accountant who is always up-to-date on them.
In an effort to curb tax evasion, the government implemented the Construction Industry Scheme (CIS). Under CIS, contractors are required to withhold a certain percentage of their payments to subcontractors. They then forward that amount to HMRC as a prepayment of the subcontractor’s income tax and national insurance.
CIS covers all construction work, including:
– Site preparation, e.g laying foundations
– Building work
– Alterations, repairs, and decorating
– Installing systems for heating, lighting, power, water, and ventilation
– Cleaning the inside of buildings at the end of the construction work
Employees of a business are subject to PAYE (pay as you earn), whereas self-employed subcontractors are covered by CIS.
An employee’s tax status under PAYE will be reflected by a unique tax code. You deduct their income tax and national insurance contributions and submit them to the HMRC. You will provide them with monthly payslips and a P60 at the end of the year.
With CIS, you pay your subcontractors the agreed-upon sum less a deduction. Typically, this amount is 20%.
Subcontractors are responsible for filing their own tax returns on an annual basis. Most people overpay their taxes and are eligible for a refund. CIS tax refunds are often issued to subcontractors who are not registered for gross payment status.
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Meet the team
We are incredibly proud of our team here at Nichols & Co, with some of the best chartered accountants, accounting trainees, payroll specialists, auditors and tax advisors in Greater London. Check out our team below.