Property and construction
Laying the foundations you need
The world of construction and property is challenging and ever evolving at the best of times. With the expertise of construction accountants, many things that can get overlooked, catch you off guard, or leave you feeling unsure of what you need to do next can be addressed. Add to this, the burden of accounting, and you’ve got a recipe for stress and confusion.
We’re expert construction accountants and for property industries as well – we’ll find you the growth you need and keep things in order.
We’ll look after everything that could possibly hinder you – from traditional accounting services, to dedicated support for property investment or advice on the Construction Industry Scheme (CIS), it’s all part of our care for you as our client. We’ll be calm and collected, finding the balance that you need to succeed in your field.
If you need dedicated tax support, especially in the realm of construction, our construction accountants are here to assist. Specifically around capital gains tax on your rental properties or CIS advice, we’re here for you. We can advise you on working with other limited companies, the rental schemes, and everything in between. We’ll make sure your tax liabilities are kept under control. Get in touch with our specialist construction accountants today.
Let's get going
We don’t bite. Let’s hear what we can do for you.
Get in touch >
What we offer you
Our range of financial services are delivered with the same care and attention, no matter where you come from, or what you do. It’s about relationships – not numbers on a page.
At Glen C Rodger we put people and the spirit of adventure at the heart of everything we do. We can open your eyes to a world of possibilities, looking at your business in a new and exciting light.
Stuck in a rut? We’ll get you out.
We bring a fresh perspective that always delivers.
Saving you time to focus on what matters
We’ll help streamline your affairs.
Getting your tax under control
You won’t pay a penny more than you should.
Plan for the success you deserve
We offer a range of business planning services.
Our Property and Construction Accounting Guide
Engaging a property accountant can help navigate the property industry. Our role as property and construction accountants is to understand the sector specific financials.
Key Financials
Revenue Recognition: Accurately tracking revenue is important. We focus on long term contract performance and project milestones.
Cost Management: Tracking direct and indirect costs to ensure project profitability. Materials, labour and overheads.
Taxation: Property and construction has unique tax implications. We help with VAT on new builds, renovations and land transactions. Managing property tax liabilities is key and our team specialise in providing bespoke accounting and tax advice to reduce these liabilities.
Compliance and Reporting
Compliance with construction industry schemes (CIS) and other regulatory requirements is important. We ensure all submissions are on time and accurate.
Preparing financial statements that reflect the true project performance is critical. This includes balance sheets, income statements and cash flow statements. Accurate submission of tax returns to HMRC is also important.
Risk Management
Financing large projects involves complex negotiation and risk assessment. Our financial structuring expertise helps secure optimal funding.
Insurance and Bonding: Insurance and bonding is key to mitigate financial risks associated with construction projects.
Technology
Using sector specific accounting software helps increase efficiency. We use these tools for better financial management and reporting.
Data security is paramount. We have robust security measures in place to protect client data.
Client Support
Every client is unique. We offer bespoke accounting services to suit individual project and business needs. Our team of property accountants specialise in providing services to commercial and residential property investors helping them navigate the financial and regulatory maze.
We stay up to date with industry trends and regulatory changes to deliver the best service to our clients.
By getting into the detail of property and construction accounting we ensure our clients get informed, enthusiastic and accurate financial advice.
Compliance and Regulatory Framework
Property tax specialists can help property owners navigate property tax regulations and ensure they meet all the requirements. From VAT legislation to the Construction Industry Scheme (CIS) we need to navigate these regulations to achieve financial and operational success.
VAT Legislation and Property Transactions
VAT in property and construction is complex. We need to know when VAT applies especially for property transactions, from sales and leases to refurbishments and new builds.
Key areas:
-
Opting to Tax: We can opt to tax a property to reclaim VAT on costs but this involves a big commitment and complexity.
-
Reduced Rates and Exemptions: Knowing which transactions benefit from reduced rates (like residential refurbishments) and exemptions helps in minimising VAT costs.
-
Input Tax Recovery: Proper documentation and claiming of input tax credits is essential for cash flow and compliance.
Construction Industry Scheme Regulations
CIS requires strict compliance for contractors and subcontractors. Under CIS contractors must deduct money from subcontractor payments and pass it to HMRC.
Our key areas:
-
Registration and Verification: Ensuring all parties are registered correctly and verifying subcontractors with HMRC to get the right deduction rate.
-
Monthly Returns: Accurate and on time submission of monthly CIS returns to avoid penalties.
-
Record Keeping: Keeping accurate records of payments, deductions and subcontractor details to match HMRC requirements.
Property Investment and Tax
Property investment has tax implications which we need to manage. Tax planning around acquisitions, disposals and operational holdings can maximise investment returns.
Key areas:
-
Capital Gains Tax (CGT): CGT and reliefs like Private Residence Relief or Entrepreneurs’ Relief.
-
Stamp Duty Land Tax (SDLT): Calculating SDLT for different types of property transactions and taking advantage of reliefs.
-
Income Tax and Corporation Tax: Structuring property investments—personal or company—determines which taxes apply and how to minimise the liabilities.
-
Tax Advice: Tax advice for property transactions, development and financing to ensure compliance and get the best financial outcome.
Annual Tax on Enveloped Dwellings (ATED)
ATED applies to residential properties over £500,000 owned by non-natural persons. We can save you a lot of money in ATED.
Key areas:
-
Property Valuations: Getting property valuations right to determine if properties fall within ATED thresholds.
-
Filing Requirements: Submitting ATED returns and payments on time with the right deadlines annually.
-
Reliefs and Exemptions: Claiming ATED reliefs such as property developers or traders to reduce tax liabilities.
We help our clients in the property and construction sectors to comply and get the best financial outcome.
Financial Reporting and Management
Project Cost Monitoring and Control
Project cost monitoring and control helps financial performance in property and construction. We use advanced tools and techniques to track expenses accurately and keep projects on budget.
For property businesses, bespoke services are needed to address the specific challenges in property development, construction and related areas. We use detailed cost reports to identify discrepancies early so we can take corrective action quickly. This proactive approach minimises financial risk and smooths out project delivery. The data from these reports also helps with future project decision making and overall efficiency and profitability.
Revenue Recognition for Property Developers
Revenue recognition can be tricky due to the nature of property development. We provide guidance on when to recognise revenue at each stage of a project so financials reflect the economic reality of ongoing projects.
By using advanced accounting software we simplify the revenue recognition process, reduce errors and increase efficiency. We comply with all regulatory requirements so financial statements are both compliant and reliable.
Capital Gains Analysis and Guidance
Capital gains analysis and guidance is key for property developers and investors to make informed financial decisions. We provide detailed analysis of potential capital gains tax liabilities so clients can understand the impact of property transactions on their overall financial position.
By planning and advice we help clients reduce their tax liabilities legally and efficiently. Whether it’s advising on timing of disposals, re-investments or tax relief options we want to maximise client value while being fully tax compliant.
Tax Planning for Property and Construction
Capital Allowances
Capital allowances give tax relief on investment in qualifying assets. We specialise in finding and claiming for fixtures, fittings and integral features of buildings. Enhanced Capital Allowances (ECAs) give 100% relief on specific energy efficient and environmentally friendly equipment. By doing site surveys and working with quantity surveyors we ensure all eligible expenses are found and claimed. These claims not only improve cash flow but also give significant tax savings so you can re-invest in the business for further growth and development.
Inheritance Tax Planning for Property Portfolios
Inheritance Tax (IHT) planning is key to preserving wealth for generations. We create plans that include using relevant reliefs such as Business Property Relief (BPR) which can reduce the value of business assets subject to IHT by up to 100%. Transferring property into trusts or Family Investment Companies (FICs) can give control while reducing tax exposure. Regular valuations and updating wills and trust deeds are also part of our strategy to be compliant and effective. This planning ensures property portfolios pass smoothly and family wealth and business continuity are preserved.
Risk Management and Mitigation
Financial Risk Assessment
In the property and construction sectors financial risks can be massive. Our approach starts with a full risk evaluation, market fluctuations, cost overruns and payment delays. We use historical data and predictive modelling to identify the areas of risk.
We monitor key indicators, including the financial health of subcontractors and material suppliers. We do regular audits and financial stress tests to pick up early warning signs of financial distress. We aim to address issues before they become major problems.
Sustainability and Environmental Reporting
Sustainability and environmental reporting is key in the property and construction sector. It means adhering to green building initiatives and understanding the impact of construction projects on the environment.
Green Building Incentives and Compliance
We know sustainable construction is good for long term environmental health. Green building incentives from government bodies encourage us to go green.
These incentives include tax credits, grants and fast tracking of permits. By complying with green building standards like BREEAM and LEED we reduce our carbon footprint and get operational cost savings.
Plus clients are demanding such practices so we continually improve our environmental strategies. Compliance means we meet regulatory requirements and get a reputation for responsible construction.
Environmental Impact Assessment in Construction Projects
Environmental Impact Assessments (EIAs) are required to assess the impact of our construction activities on the environment. These assessments cover air quality, water resources and biodiversity.
An EIA involves a full analysis of our construction plans, identifying potential environmental impacts and proposing mitigation measures. We ensure our projects are sustainable and compliant.
This approach prevents legal issues and improves the quality and sustainability of our projects. Stakeholders, clients and regulatory bodies like us for minimising environmental harm.
Exit Strategies for Construction Businesses
Given the complexity of the industry attention to detail and planning is needed for successful exist strategies. Our team of specialists can help you plan this important aspect of your business.
Steps to develop an Exit Strategy:
-
We start by reviewing the company’s financial health, market position and operational efficiency.
-
Define our goals whether it’s to sell the business, merge or pass it on to family members.
-
Do a comprehensive valuation of the business including assets, liabilities and market value.
-
Plan for transition of leadership to ensure smooth handover of responsibilities.
Key Points:
-
Understand the tax implications of each exit strategy.
-
Engage with stakeholders throughout the process to maintain trust and transparency.
-
Comply with all legal requirements including contracts, employment law and privacy.
Exit Options:
-
Sell to a Third Party: Can give a good return on investment but requires finding the right buyer.
-
Management Buyout: Allows current management to own the business, ensures continuity and preserves the company culture.
-
Family Succession: Hand over the business to family members to ensure legacy but requires careful planning to avoid conflicts.
-
Liquidation: If the business can’t be sold or passed on, focus on maximising asset value for creditors and shareholders.
By addressing these elements thoroughly, we can ensure that our hard work over the years reflects in a robust and profitable exit strategy.
Get in Touch with our team today to find out how we can help.