Specialist construction accountants in Winchester
Specialist construction accountants serving contractors and subcontractors across Winchester and Hampshire. From sole-director companies to growing main contractors, we understand CIS, VAT domestic reverse charge, job costing and the financial pressures unique to the construction industry.
Full Construction Industry Scheme compliance for contractors & subcontractors
Domestic Reverse Charge handled correctly, protecting your cash flow
Capital allowances, AIA and tax-efficient structures maximised
Project-by-project profitability tracking so you know what's working
Does the VAT reverse charge apply to my job?
The VAT domestic reverse charge is the default where you and your customer are both UK VAT registered, the payment is reported under CIS, and the supply is standard or reduced rated. With nothing in writing from an end user or intermediary supplier, apply it. It does not apply to zero-rated work such as new-build housing.
Correct for the 2026/27 tax year · last reviewed August 2026 · Chris Sullivan ACA
What every construction business in Winchester needs to get right
Construction has some of the most complex tax and compliance rules of any industry. Here's what we keep a close eye on for every client in the sector.
CIS — Construction Industry Scheme
If you use subcontractors, you're likely a CIS contractor and must deduct tax at source (20% for registered, 30% for unregistered subs) and submit monthly returns to HMRC. Getting CIS wrong leads to penalties. We handle the full process.
High PriorityVAT Domestic Reverse Charge (DRC)
Since March 2021, the VAT Domestic Reverse Charge applies to most B2B construction services. The customer (not supplier) accounts for the VAT. This has a major impact on cash flow and invoicing, and non-compliance carries serious HMRC penalties.
Legal RequirementConstruction VAT Rates
Not all construction work is standard-rated. New residential builds are zero-rated, conversions and renovations of empty properties may qualify for 5%, and repairs are generally standard-rated at 20%. We make sure you're charging the right rate every time.
ComplianceCapital Allowances & AIA
Plant, machinery, scaffolding, tools and vehicles all qualify for capital allowances. The Annual Investment Allowance (AIA) currently allows 100% relief up to £1m in year one. We ensure you're claiming every allowance you're entitled to.
Tax SavingsSubcontractor vs Employee
HMRC pays close attention to employment status in construction. Incorrectly classifying employees as subcontractors can result in significant back-tax, NIC and penalties. We help you get the status right, and defend it if HMRC ever questions it.
Risk ManagementJob Costing & Project Profitability
Do you know which jobs make you money and which don't? We set up Xero to track costs and revenue by project, so you always know your margins. Understanding job profitability is the single biggest lever for growing a construction business.
ProfitabilityRetention Payments
Retentions held by main contractors are a common source of cash flow problems and accounting errors. We make sure retentions are correctly accounted for on your balance sheet and that you're actively chasing them before they become a write-off.
Cash FlowVehicles & Plant Finance
Vans, lorries, diggers: whether purchased outright or on finance, the tax treatment varies. We ensure you're maximising allowances on assets, accounting for private use correctly, and structuring purchases in the most tax-efficient way.
AllowancesYear-End & Corporation Tax
We prepare your statutory accounts and corporation tax return with construction-specific knowledge, making sure all deductible costs, subcontractor payments, plant depreciation and CIS deductions suffered are correctly treated.
AnnualEverything included, built for your industry
All packages include a Xero subscription (our recommended software) and are structured around the specific compliance requirements of construction businesses: CIS, DRC, job costing and beyond.
Construction pricing reflects the additional compliance complexity involved. CIS returns, domestic reverse charge VAT and job costing are all included as standard. View our standard packages →
Every construction client gets Xero configured with a construction-specific chart of accounts, separating labour, materials, plant and subcontractor costs by project, so your numbers are always meaningful.
- Xero set-up with construction chart of accounts (or your preferred software)
- Statutory accounts & corporation tax
- Monthly bank reconciliation (up to 50 transactions)
- Email support
- Monthly CIS returns (as contractor)
- CIS deduction suffered reclaim
- VAT DRC compliance review
- Everything in Essentials, plus advanced Xero
- Monthly bank reconciliation (up to 150 transactions)
- Quarterly VAT returns including DRC
- Annual accounts & corporation tax
- Payroll for up to 5 employees
- Email support
- Full CIS contractor & subcontractor management
- Employment status reviews
- Capital allowances & AIA optimisation
- Basic job costing reports
- Everything in Growth
- Monthly management accounts
- Quarterly strategy & tax review meetings
- Unlimited phone support
- Full project-by-project profitability reporting
- Retention tracking & management
- Plant & vehicle finance optimisation
- Rolling cash flow forecast
- Payroll for variable/subcontractor workforce
All prices exclude VAT.
Why choose Lumi as your construction accountant
CIS, DRC, retentions — we know the language. We work proactively to keep your compliance tight and your tax bill as low as legally possible.
Plain English, no jargon
Construction is complicated enough. We give you clear, straight-talking advice without the acronym-soup or the unnecessary complexity. Just numbers that make sense and actions you can take.
CIS done properly
CIS is one of the most error-prone areas in construction accounting. We handle your monthly returns, verify subcontractor status and manage your deductions suffered — so HMRC never has cause to come knocking.
Growth-focused advice
We don't just keep you compliant. We help you understand your numbers so you can win better jobs, price more accurately and scale sustainably. Your success is our success.
One point of contact
You deal directly with a qualified Chartered Accountant who knows your business. We're responsive and accessible, and you'll never be passed around a call centre.
What construction firms ask us most
Ready to get your construction finances under control?
Book a free 30-minute call. We'll talk through your business, your CIS obligations and how we can take the financial admin off your plate.
Construction accountancy guides
Plain-English reads on the issues that catch construction businesses out.
