VAT SERVICES FOR CONSTRUCTION COMPANIES
Contractors with limited company status can save a significant amount of money by becoming VAT registered. If you’re a construction company and not already registered, we can offer plain-speaking advice based on your individual business circumstances. If you are registered, we can take the pain out of VAT by dealing with your returns, handling disputes and planning for the future.
Any contractor or subcontractor whose limited company has a gross income that exceeds the VAT threshold (currently £77,000 per year) must register for VAT or run the risk of fines. It is also possible for a contractor whose company is turning over less than the threshold to register voluntarily and Subcontractor Support have the construction expertise and experience to advise you on this and other points.
VAT – What’s the story, and why would I need help?
When a contractor registered for VAT prepares and issues an invoice, they must add to it VAT (or ‘output tax’) at the prevailing rate – currently 20%. Contractors have to account for VAT to HMRC every quarter, completing a VAT return and sending it to HMRC together with any net payment by the end of the following month. These returns will include such information as total sales, the VAT that is owed, what can be claimed and the ultimate refund amount. This means more paperwork for you, when you should be building things! We take that paperwork out of your hands and handle it, thoroughly and punctually.
There is a flat rate VAT scheme which also needs consideration if you’re to make sure you’re not taxed more than you should be. It can suit certain contractors and subcontractors that have specific patterns of expenditure. We have the knowledge to ascertain whether the scheme is right for you, based on your financial and business activity.
By managing and studying your books, Subcontractor Support will clearly articulate to you our VAT recommendations and put them into action as soon as you’re onboard with the bespoke strategy we put together for your business.
Just one of the many services we offer to construction companies, all for one monthly fee, helping them to grow and maximise profits whilst staying completely compliant.