When you’re running a construction business, you’re focused on winning contracts, keeping sites moving, and paying your team. The last thing you expect is a surprise CIS debt, £190,000 bill from HMRC — especially when it’s caused by something you thought your accountant was handling.
Unfortunately, that’s exactly what happens far too often in the construction industry.
One of the most common (and costly) mistakes I see is with CIS (Construction Industry Scheme) deductions.
Here’s a real-world example:
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Subcontractors were paid gross, not net.
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No CIS deductions were made.
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The business assumed everything was fine.
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The accountant?
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❌ No warning
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❌ No advice
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❌ No support
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Result: almost £200,000 owed to HMRC, with no profit left to show for all the hard work.
It sounds impossible — but in construction, it’s easy to scale quickly and lose track.
Why Construction Businesses Are Different
Most businesses grow steadily. A retail shop, a local accountancy firm, or an insurance broker doesn’t normally go from £0 to £2m turnover in just a few years.
But in construction, it happens all the time:
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🚀 A couple of big contracts land
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🚀 You put a team on site
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🚀 The business feels unstoppable
The challenge? Construction doesn’t scale like other industries. Growth is fast, but without the right financial systems in place, it’s a ticking time bomb.
The Financial Pitfalls to Watch For
Here are the areas where construction businesses most often slip up:
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CIS compliance – ensuring subcontractors are paid correctly and returns are filed.
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VAT – dealing with reverse charge VAT and industry-specific rules.
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Payroll – managing PAYE staff costs across multiple sites.
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Cash flow – big contracts can hide big tax liabilities.
Without strong financial control, it’s easy to end up profitable on paper but broke in reality.
How to Protect Your Construction Business
If you’re in the first few years of running your construction company, now is the time to act. Don’t wait until HMRC sends a six-figure bill.
Here’s what you can do today:
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Check CIS deductions – make sure they’re being made and reported correctly.
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Review VAT – construction VAT is complex; errors are common and costly.
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Forecast cash flow – account for tax before you spend profit.
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Get specialist advice – a generalist accountant won’t know the traps unique to construction.
Why Work With a Specialist Construction Accountant?
When you search online for an accountant for construction companies, you’re not just looking for someone to file accounts. You need:
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Industry knowledge – experience with CIS, VAT reverse charge, subcontractor pay, and project cash flow.
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Proactive support – warnings before problems spiral into six-figure debts.
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Strategic advice – not just compliance, but guidance on profit, growth, and scaling sustainably.
As a dedicated accountant and business advisor for construction firms, I’ve helped companies avoid costly mistakes, protect margins, and grow with confidence.
Don’t Wait for a £190,000 Wake-Up Call
If you’re even slightly unsure whether your CIS, VAT, or payroll processes are watertight, the best time to check is now — before HMRC does.
👉 Get in touch today, book a call here. I’d much rather help you fix a small problem early than meet you when it’s already a £190,000 one.
Or visit us here to see how we help construction businesses.
