Category: Construction and Engineering

What Urban Planning Businesses Need To Kow About New Companies House Filing Requirements

Posted on by Sidra

The UK government has introduced significant changes to Companies House filing obligations, effective from November 18, 2025. These reforms aim to enhance corporate transparency, combat economic crime, and simplify the process of tracking company ownership. Planning businesses must fully understand these changes to ensure compliance and avoid penalties or administrative setbacks.

What Are The New Companies House Filing Changes For Urban Planning Businesses

1. Mandatory Identity Verification

A key change is the mandatory identity verification for company directors and Persons with Significant Control (PSCs). This requirement means that all individuals listed as directors or PSCs must complete the Companies House verification process for directors to confirm their identity.

Verification can be done through various methods, including:

  • Online via the GOV.UK One Login app: A simple and convenient way to verify your identity online.
  • Post Office: Directors and PSCs can verify their identity in person.
  • Authorised Corporate Service Providers (ACSP): These providers are authorised to help verify identities on behalf of companies.

If you do not complete identity verification, you cannot act as a director or PSC, and your company may face penalties or filing issues. Failure to comply with the Companies House verification process for directors could even disqualify you from your role.

2. Restrictions on Filing Documents

From spring 2026 onwards, only verified individuals or registered ACSPs will be able to file documents with Companies House. This means that directors and PSCs must be verified before they can file documents such as the annual confirmation statement or other required filings.

This new rule ensures only verified individuals file documents, increases transparency, and reduces fraud risk. Planning businesses must verify their directors or appoint an ACSP to handle filings.

3. Transition Period for Existing Directors and PSCs

There will be a transitional period for existing directors and PSCs to complete their identity verification. The deadline for existing directors to verify their identities will be tied to the company’s next annual confirmation statement filing. Similarly, PSCs must verify their identities within 14 days of their birth month in the year 2025.

These changes will apply to all companies, including planning businesses. It’s crucial for businesses to start planning ahead to meet these deadlines and ensure they don’t fall behind on compliance.

4. What This Means for Planning businesses

Planning businesses need to take immediate steps to comply with these changes. The following actions are recommended:

  • Verify Identity: Ensure all directors and PSCs are verified before the new rules come into effect. This can be done through the GOV.UK One Login app or via an ACSP.
  • Update Internal Filing Procedures: businesses should review and update their internal filing processes to comply with the new restrictions. Appointing an ACSP may be a good option to avoid any delays or compliance issues.
  • Consult a Professional: Engage an accounting firm or legal professional to guide you through the process. They can help ensure that all necessary steps are taken in a timely manner.

5. Penalties for Non-Compliance

In case you fail to meet these new Companies House filing changes for urban planning businesses, there can be serious consequences:

  • Unable to File Documents: If directors or PSCs are not verified, the company will not be able to submit required filings to Companies House.
  • Fines or Striking-Off: Companies that do not comply may be subject to fines, or worse, the company may be struck off the register entirely.
  • Damage to Reputation: Non-compliance can tarnish a company’s reputation, affecting relationships with investors, clients, and partners. This can be especially detrimental to planning businesses that rely on a solid professional image.

It is essential that planning businesses take immediate action to ensure they comply with these new rules.

6. Impact on Planning businesses

The new regulations will undoubtedly impact the operations of planning businesses in the UK. Here’s what you can do to adapt:

  • Complete Identity Verification: Ensure that all directors and PSCs complete the identity verification process before the deadline.
  • Consider Appointing an ACSP: Appoint an Authorised Corporate Service Provider if you prefer to have a third party handle the filing process on behalf of the company.
  • Review Your Filing Procedures: Revisit and streamline your internal filing procedures to accommodate the new restrictions and ensure smooth filing of documents moving forward.

The recent changes to Companies House filing obligations are crucial for enhancing transparency and reducing fraud. For planning businesses, understanding these changes and ensuring timely compliance is vital to avoiding penalties and maintaining a good standing with Companies House.

How Apex Accountants Can Help With New Companies House Filing Requirements For Urban Planning businesses

At Apex Accountants, we specialise in providing support to planning businesses through regulatory changes like these. Our expert team can guide your business through the identity verification process, review your filing procedures, and ensure ongoing compliance with Companies House requirements. We provide bespoke advice tailored to your specific needs, helping you avoid costly mistakes and stay ahead of regulatory deadlines.

Contact Apex Accountants today to learn how we can help you navigate these changes with confidence. Our team is ready to provide the guidance you need to stay compliant and maintain a competitive edge in the market.

FAQs on New Companies House Filing Requirements

1. Will identity verification be required from 18 November 2025 at Companies House?

Yes, from 18 November 2025, all company directors and Persons with Significant Control (PSCs) must verify their identity with Companies House. They must complete the verification process online or use an authorised corporate service provider (ACSP).

2. What do I need to file accounts at Companies House?

To file accounts at Companies House, you need to submit annual financial statements that include your balance sheet, profit and loss statement, and notes to the accounts. You can file your accounts electronically or by post, depending on your company’s size and filing preferences.

3. What are the changes to Companies House from 1 April 2027?

The UK government plans to introduce additional regulations from 1 April 2027, which may include enhanced transparency measures and further requirements for the filing of accounts and records. Details of these changes will be available closer to the date.

4. What are the changes to the Companies House 2025?

The key change to Companies House in 2025 is the introduction of mandatory identity verification for directors and PSCs. Additionally, only verified individuals or registered ACSPs will be allowed to submit documents to Companies House.

5. New Companies House filing requirements – where can I find them?

You can find the latest Companies House filing requirements on the official GOV.UK website. It provides detailed guidance on what is required for filing accounts, confirmation statements, and other documents.

6. Companies House accounts filing requirements – what are they?

The filing requirements for company accounts at Companies House depend on the size and type of the company. All companies must submit annual accounts, which include a balance sheet, profit and loss statement, and notes to the financial statements.

7. How do I file accounts with Companies House by post?

To file accounts by post, you must complete the relevant form, sign it, and send it to the Companies House address. It’s important to check the deadline to avoid penalties. Filing online is generally quicker and more efficient.

8. How do I log in to Companies House?

To log in to Companies House, you need to create an account on the Companies House WebFiling service. Once registered, you can submit documents, file accounts, and make changes to company details.

9. What are the Companies House filing requirements for small companies?

Small companies have simplified filing requirements, including fewer details on their balance sheets and profit and loss accounts. However, they still need to file annual accounts with Companies House and may be eligible to file in a simpler format depending on their size and financial performance.

10. What is the Companies House Beta?

The Companies House Beta is an experimental online service that allows businesses to file documents more easily, providing a streamlined process for submitting accounts and other filings. It is a part of the ongoing digital transformation of Companies House services.

How VAT on Urban Planning Services Affects Mixed-Use Developments

Posted on by Sidra

In the UK, VAT on urban planning services can be complex, especially for mixed-use developments that combine residential, commercial, and other property types. Understanding how VAT applies across different project components is essential for urban planning companies, developers, and contractors involved in these types of projects.

VAT Treatment for Residential Projects

For residential projects, planning services are generally exempt from VAT. This means that urban planning companies providing services related to the development of residential properties do not charge VAT to their clients. However, this exemption only applies to the planning services directly related to residential property construction. In some cases, there may be 5% VAT on residential property refurbishment if the works involve qualifying renovations, but this would be a separate issue from planning services.

Commercial Property and VAT

Planning services for commercial projects, on the other hand, are typically subject to VAT at the standard rate of 20%. Urban planning companies must charge VAT on their services related to commercial developments, including retail, office, or industrial properties. This standard VAT rate applies to all professional services related to commercial planning, including architectural plans, site development strategies, and environmental assessments.

Mixed-Use Developments

Mixed-use developments, which combine both residential and commercial elements, present more complexity. For these types of projects, VAT treatment is determined based on the nature of the services being provided. Planning services are typically exempt from VAT if they relate to the residential portions of the project. However, services connected to the commercial areas of the development will be subject to VAT.

In mixed-use projects, it’s important to distinguish which services relate to the residential part of the development and which relate to the commercial part. This allows urban planning companies to apply the correct VAT treatment to different aspects of the project.

VAT on Complex Services

In many cases, urban planning companies may provide a mix of residential and commercial planning services for a single project. The overall VAT treatment may depend on the proportion of work related to each element. For instance, the VAT treatment may favour the exempt rate if residential planning constitutes the majority of the work. Conversely, if the project is predominantly commercial, VAT will likely apply.

What About New Build VAT Exemption?

For planning services related to new builds, residential developments are usually exempt from VAT. However, the New Build VAT Exemption List applies to specific types of construction, which may also include the planning services associated with them. This exemption allows developers to save on VAT costs related to the construction of new homes and residential units.

How to Avoid VAT on Building Work

It’s important to note that urban planning services themselves aren’t usually subject to VAT avoidance strategies, as VAT treatment focuses on construction and building works. However, developers involved in residential or mixed-use projects might benefit from reduced VAT rates on specific building works, such as 5% VAT on building work for certain qualifying refurbishments or residential renovations.

How Apex Accountants Can Help With VAT on Urban Planning Services

At Apex Accountants, we know what it takes to calculate VAT in mixed-use developments and residential projects. Our team of expert tax advisors is well-versed in VAT regulations specific to urban planning and construction. We can help your business navigate the intricate VAT landscape, ensuring that you apply the correct rates to residential, commercial, and mixed-use developments.

Whether you’re unsure about VAT exemptions, need guidance on reclaiming VAT on expenses, or want advice on reducing VAT liabilities, Apex Accountants is here to support you. 

Conclusion

The issue of VAT on planning services for mixed-use developments is not universally applicable. The key to managing VAT correctly lies in understanding the project’s components and how they are classified. Urban planning companies must carefully assess the services provided for residential and commercial sections of a development and apply the appropriate VAT rates. If your business is involved in mixed-use developments, it is essential to seek expert advice to ensure compliance with VAT regulations. Apex Accountants offers expert VAT guidance tailored to urban planning companies. Our experienced team can help you navigate these complexities, ensure that you stay compliant, and optimise your VAT position. Contact us today for expert VAT support in urban planning.

FAQs

  • Are all planning services exempt from VAT in the UK?

No, residential planning services are usually exempt, but commercial planning services are subject to VAT at the standard rate.

  • What is the VAT rate for commercial property planning services?

Commercial planning services are generally subject to VAT at the standard rate of 20%.

  • How is VAT handled in mixed-use developments?

VAT treatment depends on whether the services are related to the residential or commercial part of the project.

  • Can urban planning companies reclaim VAT on expenses?

Yes, urban planning companies can reclaim VAT on expenses related to their taxable services.

  • What should urban planning companies consider when working on mixed-use developments?

Companies must carefully assess the scope of work and apply the correct VAT treatment based on the project components.

  • How does the 5% VAT rate apply to building work?

The 5% VAT rate generally applies to qualifying residential renovations, which might affect the VAT treatment of the overall project.

  • How does the New Build VAT Exemption List impact planning services?

The New Build VAT Exemption List can impact planning services related to new residential developments, allowing for VAT exemptions on construction costs.

What Urban Planning Firms Must Know About HMRC’s Construction Industry Scheme Crackdown

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In recent months, HMRC has intensified its focus on the Construction Industry Scheme (CIS), particularly targeting urban planning companies involved in development projects. This increased scrutiny brings fresh challenges and potential risks for planning firms that may not be fully compliant with CIS regulations. Understanding these developments is crucial to safeguarding your business.

What is the HMRC Construction Industry Scheme (CIS)?

The Construction Industry Scheme is designed to regulate tax deductions for contractors and subcontractors in the construction industry. Under this scheme, contractors must deduct money from a subcontractor’s payments and pass it on to HMRC. The deductions count towards the subcontractor’s tax and National Insurance contributions.

Why is HMRC Focusing on Urban Planning Companies?

Urban planning companies involved in large-scale development projects are often caught in the crossfire of CIS regulations. Many planning firms engage contractors for various services, from surveying to architectural design. If these services are incorrectly classified under CIS, HMRC could enforce penalties for non-compliance.

Urban planning firms need to ensure that they are correctly identifying who should be considered a subcontractor under the scheme. If they fail to do so, they may face costly fines or additional scrutiny from HMRC. Even if a firm’s involvement in construction is primarily planning or design-based, it’s essential to understand when and how CIS applies to avoid falling foul of tax rules.

Key Compliance Issues for Urban Planning Firms

  1. Subcontractor Status
     Determining whether a worker is a subcontractor can be challenging for urban planning companies. The distinction depends on the nature of the work and the specific contractual arrangements. Incorrectly classifying subcontractors can lead to penalties.
  2. Payments and Deductions
     If a planning company engages in construction-related services, they need to ensure proper deduction of payments to subcontractors. Any missed or incorrect deductions will be flagged by HMRC during an audit.
  3. Registration Requirements
     It’s essential for subcontractors to be registered under CIS. Urban planning firms must verify the registration status of each subcontractor before processing payments. Failing to do so can result in 30% deductions instead of the standard rate, increasing the cost of the project.

What Are the Risks of Non-Compliance?

Urban planning firms that fail to comply with CIS face significant risks, including:

  • HMRC Penalties: Late or incorrect tax filings can lead to substantial fines.
  • Increased Audits: Non-compliance may trigger further audits, leading to more scrutiny of your financial records.
  • Loss of Business Reputation: Repeated compliance failures can damage your company’s reputation with clients, contractors, and HMRC.

How to Ensure CIS Compliance

  1. Understand the Scope of CIS
     It’s essential to determine whether the work your company is involved in qualifies for CIS. This includes understanding which services fall under the scheme, such as construction-related consultancy and subcontractor work.
  2. Check Subcontractor Status
     Before hiring, verify the subcontractor’s CIS registration. Ensure that all payments made to subcontractors are handled according to the correct tax deductions.
  3. Maintain Accurate Records
     Accurate record-keeping is vital for ensuring compliance. Keep detailed records of all payments, deductions, and subcontractor statuses. This will make it easier to prove compliance in the event of an HMRC audit.
  4. Seek Professional Guidance
     If you are unsure about any aspect of CIS compliance, seek advice from specialists who understand the nuances of tax regulations for urban planning companies. A trusted accountant can help you navigate this complex landscape and avoid costly mistakes.

Why CIS Registration For Urban Planners Is Importants

Urban planners involved in construction projects need to ensure they are fully compliant with the Construction Industry Scheme (CIS). CIS registration for urban planners is an essential step if your firm works with subcontractors in the construction industry. This registration helps ensure proper tax deductions and avoids potential penalties from HMRC.

Understanding when and how to register for CIS is vital whether you are working on site assessments, development plans, or collaborating with construction teams. Correct registration ensures your firm meets its tax obligations while protecting your business from unnecessary scrutiny and fines.

Why Choose Apex Accountants?

At Apex Accountants, we specialise in providing tax and accounting services for urban planning companies. Our expert team understands the complexities of the Construction Industry Scheme and can ensure that your business remains compliant with all relevant tax regulations. With our help, you can avoid the risks associated with CIS non-compliance and focus on growing your business with confidence.

Conclusion

HMRC’s heightened scrutiny of CIS compliance for urban planning companies underscores the importance of staying up to date with tax regulations. By understanding your obligations under the scheme, accurately classifying subcontractors, and maintaining proper records, you can mitigate risks and avoid penalties. If you’re unsure about your current CIS compliance, Apex Accountants can provide the support and guidance you need to stay on track.

For expert CIS compliance advice tailored to your urban planning company, contact Apex Accountants today. Let us help you safeguard your business from potential tax issues.

GIS Integration and Cloud Accounting For Property Surveying Companies

Posted on by Sidra

Property surveying is built on accuracy, speed, and control. Projects span multiple sites, with crews, equipment, and subcontractors generating costs every day. At the same time, margins are under pressure, and clients expect fast, precise billing. Traditional accounting systems often lag behind this pace, leaving gaps between field activity and financial records. Cloud accounting for property surveying companies bridges that gap. Every transaction can link in real time to a site, task, or asset when integrated with GIS tools. 

This means fewer errors, tighter cash flow, and reporting that reflects the actual progress of work on the ground. From VAT compliance under Making Tax Digital to margin tracking across regions, cloud-based systems give surveying firms the visibility they need to stay competitive.

Apex Accountants helps property surveying companies in the UK design, implement, and manage these systems—so your maps and your money stay connected.

Why cloud works for surveyors

Survey teams move between sites. The cost of land is increasing daily. Clients want clear, prompt invoices. A cloud ledger fits that pace and removes duplicate effort. You gain live bank feeds, mobile capture, and project tracking in one place. Decision-making speeds up.

Traditional desktop systems create bottlenecks. Field teams wait for office updates. Project managers guess at current costs. Directors see last month’s numbers when making today’s decisions. Cloud accounting for surveyors eliminates these delays.

Core features to look for

Modern ledgers can mirror real survey work. They track time, kit, travel, and stages of delivery. They also support simple approval flows and VAT rules that fit UK work.

  • Job and project costing by site, grid, or asset
  • Mobile timesheets for crews and kits.
  • Digital receipt capture with geo-tags
  • Fixed-fee, milestone, and time-based billing
  • Bank rules for fuel, mileage, and tolls
  • WIP, debtor days, and cash-flow dashboards
  • Role-based access and full audit logs

GIS integration provides property surveyors with rich site context. When linked to the ledger, that context powers cleaner costing and quicker billing. IDs align, so people stop guessing where time and spending belong.

The magic occurs when your mapping data communicates directly with your financial records. Survey phases trigger billing milestones automatically. Equipment logs connect to hire charges. Travel routes match expense claims.

  • Project codes sync: Use one site ID in both systems. Drop duplicate names
  • Timesheets from field apps: Push approved hours into job costing and payroll
  • Geo-tagged expenses: Match fuel, parking, and materials to the right site
  • Asset tracking: Log hire and maintenance by instrument and location
  • Milestone billing: Trigger invoices when a layer, tile, or deliverable hits “complete”
  • Map-based reporting: View margin by postcode district or tile. Spot loss-making zones fast

Integration routes that work

Every firm starts from a different stack. Pick the lightest route that gives stable, two-way links and audit trails that pass review.

Whether you’re running QuickBooks, Xero, or Sage, integration paths exist. Native connectors work best for standard setups. Custom middleware handles complex workflows.

  • Native connectors for common field and finance tools
  • CSV/GeoJSON export from GIS, then import to accounting after light cleaning
  • Middleware or iPaaS for two-way sync, retries, and alerting
  • Webhooks or scripts for rules, e.g., auto-create a project when a new site appears in GIS

Keep naming rules tight. Pick one project code pattern and stick to it. Example: ClientCode_SiteCode_Service_Month.

Making Tax Digital (MTD) made simple

VAT-registered survey firms need digital records and digital links. No copy-paste between systems. Cloud tools meet MTD rules and cut rekeying risk. A good setup avoids late changes near filing dates.

The penalties for non-compliance hit hard. HMRC expects seamless digital trails from source documents to VAT returns. Manual processes create gaps that trigger investigations.

  • Use MTD-compatible software for VAT submissions
  • Store sales and purchase data in digital form
  • Keep clear digital links from source to VAT return
  • Reconcile bank feeds frequently
  • Review VAT codes for disbursements and recharges

MTD for Income Tax starts for many self-employed from April 2026. Corporation Tax MTD remains in pilot. Plan now; focus on VAT today.

Data design that pays off

Strong data design beats fancy dashboards. Start with codes and structure that mirror how crews work. Add geo fields for meaningful reports.

Your chart of accounts should tell the story of your business. Separate revenue streams become visible. Cost centres align with how teams actually work. Reports answer real questions instead of creating more confusion.

  • Chart of accounts: Split topo, measured building, scanning, and setting-out
  • Cost codes: Labour, kit, travel, subcontract, lab fees, rework, software
  • Project structure: Client → Site → Phase → Task
  • Geo fields: Store site ID, region, and grid ref per project
  • Approval flow: Timesheets first, expenses second, billing last

Reports leaders use weekly

Leaders need quick signals on cash, margin, and delays. Build a small set of views and review them on fixed days. Keep definitions stable.

Monday morning should start with clear numbers. Which projects make money? Where do costs spiral? Who pays on time? These answers drive weekly decisions.

  • Margin by site, service line, and region
  • WIP by phase with ageing
  • Crew utilisation and overtime alerts
  • Cash-flow forecast by client payment terms
  • Debtor days with dispute flags
  • Kit recovery rate vs hire cost

Security and compliance fundamentals

Survey data can be sensitive. Finance data is always sensitive. Pick vendors with strong controls and UK data options. Keep rights tight and logs active.

Client confidentiality matters in surveying. Planning applications, property boundaries, and commercial developments need protection. Your cloud platform must match these requirements.

  • UK GDPR compliance, DPA terms, and clear data-processing records
  • ISO 27001 or equivalent certification
  • Data retention rules for the project and the client
  • MFA, SSO, and least-privilege access
  • Regular backup tests and export options

Field connectivity and offline reality

Crews often work with weak signals. Design for sync gaps and human error. Please ensure that input steps are concise and clear.

Rural sites and basement surveys challenge connectivity. Your system must work when the signal doesn’t. Smart offline modes and simple sync routines keep data flowing.

  • Mobile capture that saves offline and syncs later
  • Image receipts with OCR tied to site codes
  • Simple weekly routines for sync, review, and approve
  • Clear fallback: paper pack → bulk scan → batch match

Cost model and ROI

Cloud tools carry licence and setup costs. Good design repays that quickly through speed and fewer write-offs. Track benefits from day one.

Most surveying firms see payback within six months. Faster invoicing improves cash flow immediately. Accurate job costing prevents loss-making quotes. Better expense tracking cuts tax bills.

  • Fewer days to invoice and collect
  • Lower rework on billing and VAT
  • Higher kit recovery rate
  • Fewer hours spent on manual exports and fixes.

Quality controls and audit trail

Quality lives in small checks placed early. Lock the process and keep logs easy to read during reviews.

Professional indemnity insurers examine your processes. Clients audit your billing. HMRC reviews your VAT workings. Strong controls protect against all three scenarios.

  • Four-eyes checks for high-value invoices
  • Spend limits based on role and site.
  • Mandatory site code on all time and expenses
  • Change logs for tax codes and rates

Sample data mapping

Define fields before you build links. Keep IDs short and stable. Avoid free text where a picklist will do.

  • GIS Site_ID → Accounting Project_ID
  • GIS Layer/Phase → Accounting Task
  • GIS Region → Reporting Region
  • GIS Status → Billing Milestone

Common pitfalls to avoid

Most failures come from loose naming, late reconciliations, and manual edits. Fix those first. The rest gets easier.

  • Two project code formats in parallel
  • Manual CSV work without checks
  • Wrong VAT codes on disbursements
  • No process for rework approval
  • Bank feeds left unreconciled for weeks
  • Field apps not linked to job costing

A practical rollout plan

Tight scope wins. Start small, prove value, then scale. Keep a single owner and weekly checkpoints.

Weeks 1–2: Map processes. Fix naming rules. Design a chart of accounts and cost codes.

Weeks 3–4: Clean data. Migrate ledgers. Build GIS links. Set VAT rules and bank feeds.

Week 5: Pilot one region or service line. Train the team.

Week 6: Go live. Monitor KPIs daily for one month.

How Our Cloud Accounting For Property Surveying Companies Work

Property surveying firms need clear codes, clean data, and rapid billing. Our team designs a simple, durable setup that links field work to finance. We focus on stable IDs, tidy VAT rules, and reliable sync between GIS integration for property surveyors and the ledger. Then we train your people and stay close during month-end and VAT quarters.

Discovery and data design

We run focused workshops with your team. Outputs include a tailored chart of accounts, cost codes that match your services, a VAT code matrix for disbursements, a project ID schema, and naming conventions. You also receive an MTD control map and month-end checklist designed for surveying workflows.

Platform selection and migration

Whether you’re considering QuickBooks, Xero, Sage, or specialist surveying platforms, we assess your needs first. Our cloud accounting for surveyors handles data cleaning, historical migration, and parallel running. Your existing processes continue while we build the new system behind closed doors.

GIS-to-ledger integration

Our team maps fields between your GIS and accounting systems. We build two-way sync with automated retries and error alerts. Timesheets, expenses, and milestone triggers carry correct project codes. Every transaction maintains a clear audit trail for compliance reviews.

Billing optimisation and WIP control

We establish fee schedules that match your service lines. Milestone templates trigger invoices automatically when survey phases are complete. Disbursement routing ensures correct VAT treatment. WIP ageing reports flag potential delays before they impact cash flow.

Making Tax Digital implementation

Our experts enable end-to-end digital record-keeping for VAT compliance. Each quarterly return includes a comprehensive review checklist and supporting evidence pack. No manual copy-paste steps exist between source documents and VAT submissions. We prepare you for upcoming Income Tax MTD requirements.

Custom dashboards and KPIs

We build executive dashboards showing site-level margins, WIP by survey phase, debtor analysis, equipment recovery rates, and 13-week rolling cash forecasts. All definitions remain consistent for meaningful trend analysis. Reports update automatically with live data.

Comprehensive training programme

We deliver role-specific training sessions for finance teams, project managers, and field crews. Quick reference guides cover receipt capture, timesheet coding, and expense allocation. A dedicated consultant shadows your first month-end close to ensure smooth operations.

Security and compliance setup

Our data security officers implement least-privilege access controls, multi-factor authentication, and automated leaver workflows. Data retention policies align with client contract terms. Regular backup testing ensures business continuity. All configurations meet UK GDPR and professional indemnity requirements.

Ongoing support model

You receive a named contact for all queries. Monthly close support includes bank reconciliation reviews and WIP analysis. Quarterly VAT preparation covers code reviews and return validation. The annual system health checks optimise performance and add new features.

Change management and adoption

We understand that field teams resist new processes. Our change management approach includes gradual rollouts, peer champions, and success celebrations. Small change requests move through a streamlined ticket system with clear timescales.

Measured outcomes and ROI tracking

We establish baseline metrics before implementation. Typical improvements include 3-5 fewer days to invoice, 15-20% faster collections, a 50% reduction in billing rework, and daily bank reconciliation cycles. We track these metrics monthly and adjust processes to maximise benefits.

Industry expertise and best practice

Our team understands surveying workflows, from initial site visits through to final deliverables. We know how measured building surveys differ from topographical work. We understand the challenges of equipment tracking, subcontractor management, and client disbursement recovery.

Conclusion

Cloud accounting integrated with GIS tools gives property surveying companies in the UK a clear edge. It connects field activity with financial data, supports compliance with Making Tax Digital, and improves both cash flow and profitability. With the right setup, surveyors can reduce admin, gain accurate reporting, and invoice clients faster.

At Apex Accountants, we go beyond software installation. We design the right structure, build secure integrations, and create dashboards that show you where profit and delays really sit. Our team provides hands-on training, VAT compliance reviews, and ongoing support so your system keeps working under pressure. Contact us today to find out how Apex Accountants can help your surveying business link financial control with on-site precision.

Everything You Need To Know About The New R&D Tax‑Relief For Surveyors

Posted on by Sidra

The UK government has consolidated its research & development (R&D) tax‑relief for surveyors. For accounting periods beginning on or after 1 April 2024, the previous SME and RDEC schemes have been replaced by a merged R&D expenditure credit (RDEC) scheme with a separate enhanced R&D‑intensive support (ERIS) regime for loss‑making, R&D‑intensive companies. Surveying firms developing new geographical information systems (GIS) methods or drone‑based measurement systems now need to navigate these rules in order to maximise support for their innovation.

Under the merged scheme, companies receive a taxable expenditure credit of 20% of qualifying costs. After corporation tax at 25%, the net benefit is roughly 15 p per £1 of qualifying expenditure, or 16.2 p where the company pays the small‑profits rate. Small and medium-sized enterprises (SMEs) that are not making a profit but spend a lot on research and development (R&D) can apply for a special support program for surveying SMEs, which offers an additional 86% deduction and a cash credit of This translates into up to 27 p for every £1 invested in qualifying R&D. Understanding these rates is essential for surveyors budgeting for innovation and preparing claims.

In this guide by expert R&D specialists at Apex Accountants, you’ll learn how to document R&D costs for surveying companies in the UK, meet the intensity condition and claim relief under the merged RDEC or ERIS schemes.

Which property surveying activities qualify as R&D?

To claim R&D relief, projects must seek a scientific or technological advance and attempt to overcome uncertainties. In property surveying, qualifying activities may include:

  • Developing new GIS algorithms. Examples include designing algorithms that reduce processing time for large point‑cloud datasets or integrating multiple coordinate systems into a unified model. Implementing machine‑learning techniques to automatically detect boundaries or classify land use from satellite imagery may also qualify.
  • Enhancing drone‑based measurement systems. Creating bespoke flight-planning software, developing custom sensors, or improving positioning accuracy to sub-centimetre levels can meet the R&D definition. Research into obstacle‑avoidance systems, real‑time data transmission and automated 3‑D modelling also qualifies.
  • Building novel data‑integration workflows. Projects that integrate LiDAR, photogrammetry, and ground-based survey measurements into a cohesive digital twin for a site often involve technical uncertainties. Developing secure cloud platforms for sharing survey data or automating quality‑control checks may be eligible.
  • Improving environmental surveying techniques. R&D includes work on measuring subsidence using satellite interferometry, mapping flood risk models or developing sensors to detect underground utilities. If the work requires overcoming technical barriers, it should be considered.

It is important to distinguish routine work from genuine R&D. Simply using commercially available drones or GIS software is not enough. The firm must show that it tried to achieve an advance that is not readily deducible by a competent professional and that uncertainties were resolved through experimentation.

Understanding the merged RDEC scheme

The merged RDEC scheme applies to all companies that carry out qualifying R&D and are subject to corporation tax. Key features include:

  • Expenditure credit rate – 20%. For each pound of eligible R&D spent, the company receives a 20% credit. This credit counts as trading income and is taxed, leaving a post‑tax benefit of around 15 p per £1, or 16.2 p where the small‑profits rate applies.
  • Eligible costs. Companies can claim for staff salaries, employer national insurance and pension contributions, subcontracted staff, externally provided workers, consumables (e.g., survey stakes, batteries), software licences (including cloud computing and data feeds) and a proportion of utilities used on R&D. Expenditure on capital assets cannot be included, though separate research & development allowances may apply.
  • Document R&D costs for surveying companies. Firms must maintain detailed records of the R&D project: objectives, uncertainties, systematic experimentation, and results. Timesheets should allocate staff hours spent on R&D. Keep copies of the invoices for subcontractors, software licenses, and consumables. Supporting evidence helps HMRC verify claims.
  • PAYE/NIC cap. The payable credit cannot exceed £20,000 plus 300% of the company’s total PAYE and NIC liabilities. Companies whose employees create or manage intellectual property and whose subcontracting costs to connected parties are below 15% of qualifying spend are exempt.

For property survey firms, qualifying expenditure often arises from staff time spent coding GIS tools, running field trials with prototype drones, processing data, and analysing results. To maximise the credit, apportion costs between eligible R&D and non‑R&D activities using a reasonable and consistent method.

R&D Intensive Support Scheme For Surveying SMEs

ERIS targets loss‑making SMEs whose qualifying R&D expenditure represents at least 30% of their total expenditure. The threshold was 40% for periods starting before 1 April 2024, and a one‑year grace period applies. If the intensity condition is met, ERIS offers:

  • Extra 86% deduction plus 14.5% cash credit. The company can deduct an additional 86% of eligible costs on top of the 100% deduction already taken. It can then surrender the resulting tax loss for a cash credit worth up to 14.5% of the surrenderable loss.
  • Effective benefit up to 27 p per £1. Because enhanced expenditure is 186% of the actual spend, the cash credit can reach 27 p for every £1 invested. This is 45% more generous than SME R&D relief (18.6 p per £1) and 67% more than the merged RDEC (16.2 p per £1).
  • Strict eligibility. The company must be unprofitable before the enhancement and satisfy the SME size criteria: fewer than 500 employees, turnover below €100 million, or a balance sheet under €86 million. If another entity owns 25% or more of the company, its headcount and turnover may need to be included.

ERIS is particularly valuable for start‑up surveying firms investing heavily in advanced measurement technology but not yet generating profits. It can provide crucial cash flow to fund further research.

Meeting the intensity condition

The intensity condition requires that qualifying R&D expenditure constitutes at least 30% of total expenditure. For surveying companies, total expenditure includes staff costs, subcontractors, rent, marketing, and other operating costs. To meet the threshold:

  • Identify all qualifying R&D costs. This includes R&D‑related salaries, subcontracted specialists (e.g., software developers), prototype materials, drone components and cloud computing fees. Exclude routine business expenses and commercial survey work.
  • Calculate total expenditure. Use figures from the profit‑and‑loss account prepared under GAAP; include pre‑trading costs and deductions from the tax computation where relevant. Do not include amortisation added back for tax or payments to connected companies.
  • Maintain accurate records. Use project codes to track R&D costs. Document time spent on R&D to justify the percentage. For connected companies or mismatched accounting periods, allocate costs using a reasonable method and apply it consistently.

If the company fails the intensity test in one year, a grace period allows an ERIS claim if the condition was met in the previous 12-month period and a valid SME or ERIS claim was made for expenditures incurred on or after April 1, 2023.

Steps for property‑surveying firms to claim R&D relief

  1. Identify qualifying projects early. During project planning, determine which activities aim to achieve technological advances and involve uncertainty. Please maintain a concise technical description and record the start and end dates.
  2. Record time and costs. Implement timesheets for staff working on R&D. Use separate expense codes in the accounting system for R&D materials, software, and subcontractors. Save invoices and contracts.
  3. Decide between the merged RDEC and ERIS. Calculate whether your R&D spend meets the intensity condition (30%). Whether your company is profitable or not R&D‑intensive, the merged RDEC will likely apply; if loss‑making and R&D‑intensive, ERIS may deliver a higher benefit.
  4. Check PAYE cap implications. Please ensure that PAYE/NIC liabilities support the claim, and kindly consider the £20,000 plus 300%. If exempt, confirm that employees create intellectual property and that connected‑party subcontracting stays below 15% of qualifying spend.
  5. Prepare the additional information form. HMRC requires companies to notify them of an intention to claim and to file an additional information form before submitting the CT600 return. Provide details about the R&D project, the uncertainties faced, the advances sought, and the breakdown of costs.
  6. File the claim through the corporation tax return (CT600). Include the R&D expenditure credit or the surrenderable loss and cash credit in the return. Remember that the RDEC is taxable; ERIS cash credits are not.
  7. Retain records for HMRC enquiry. HMRC may request evidence of R&D activities and costs. Keep your technical narratives, timesheets, contracts, and financial records for at least six years.

How Apex Accountants Can Help You Benefit From New R&D Tax-Relief For Surveyors

Innovation is transforming property surveying. From drone-based photogrammetry to AI-driven GIS modelling, firms are developing new tools and techniques. The UK’s reformed R&D tax-relief regime provides valuable support for this innovation. The merged RDEC scheme offers a credit worth around 15 p per £1 of qualifying expenditure, while enhanced R&D-intensive support can deliver up to 27 p per £1 for loss-making SMEs.

With careful planning, record-keeping and understanding of the intensity of the condition, property-surveying companies can turn their research into a healthy cash inflow. Apex Accountants is experienced in helping surveyor firms compile robust R&D claims, allocate costs correctly and choose the most beneficial scheme. By embracing the new R&D tax-relief regime, surveyors can continue pushing the boundaries of measurement technology and secure funding to support their growth. Contact Apex Accountants today to discuss your R&D tax-relief opportunities and strengthen your financial future.

How to Handle HMRC Tax Investigations on Property Surveying Companies

Posted on by Sidra

HMRC investigations can be disruptive. For property surveying firms, these enquiries can affect operations and create unnecessary stress. The best way to handle HMRC tax investigations on property surveying companies is to be prepared. Being proactive, keeping accurate records, and understanding how to respond can help resolve issues quickly and efficiently.

Why HMRC Investigates Property Surveying Firms

HMRC investigates businesses to ensure they are complying with UK tax laws. Property surveying firms, like others in the construction sector, must stay compliant with VAT, Corporation Tax, and other financial regulations. Common triggers for tax investigations in the property sector include discrepancies in tax returns, late filings, or errors in financial records.

The Importance of Record-Keeping

Accurate recordkeeping is crucial for property surveyors. Clear and organised financial records help prevent mistakes and support your tax filings. It also ensures you can respond quickly if HMRC asks for documentation. Key records to keep include:

  • Invoices: Keep all invoices issued and received, including VAT details.
  • Bank Statements: Ensure all transactions are recorded and reconciled.
  • Expense Receipts: Track all business-related expenses to claim deductions.
  • Tax Returns: Keep copies of filed tax returns for several years.

By keeping these records, you make it easier to handle an HMRC inquiry, minimising the risk of penalties.

How to Respond to HMRC Enquiries

If HMRC contacts your surveying firm, it’s essential to respond quickly and thoroughly. Here’s how to handle it:

  • Review the Request: Understand what HMRC is asking for. If you don’t fully understand the request, seek expert advice.
  • Provide Clear Documentation: Submit the requested records and documents promptly. If you’re missing any information, inform HMRC and provide an explanation.
  • Seek Professional Support: At Apex Accountants, we offer expert HMRC investigation support. Our team can help guide you through the property surveyor’s tax investigation process, ensuring your responses are accurate and compliant with UK tax laws.

How Apex Accountants Can Help 

At Apex Accountants, we understand the complexities of tax investigations in the property sector. We provide tailored support to ensure your business stays compliant with HMRC regulations. Our team offers proactive advice on tax planning, record-keeping practices, and how to respond to HMRC investigations.

We also provide regular audits to spot potential issues before they become problems. Should you ever face an HMRC enquiry, we will represent your business and manage the process efficiently, helping you avoid unnecessary stress.

How We Handle HMRC Tax Investigations on Property Surveying Companies

At Apex Accountants, we specialise in supporting property surveying companies across the UK, particularly when it comes to handling HMRC tax investigations. Our extensive experience in the property surveying sector, combined with a deep understanding of the unique challenges you face, makes us your trusted partner for managing tax-related issues. Here’s how we handle HMRC tax investigations for property surveying companies:

Expertise in Property Surveying Sector

With years of experience working closely with property surveying companies, we understand the specific challenges and regulations you face. This sector-focused expertise allows us to provide tailored solutions that address the nuances of property surveying businesses.

In-depth Knowledge of Tax Regulations

Our team is well-versed in the full range of UK tax laws, including VAT, Corporation Tax, and specific rules related to property surveyors. This comprehensive understanding ensures that your business is fully compliant with all relevant tax regulations, reducing the risk of any future issues.

Proactive Compliance

We don’t wait for problems to arise. Instead, we take a proactive approach to ensure your business stays compliant with HMRC’s ever-evolving regulations. Our proactive compliance approach lowers the risk of tax investigations, enabling you to concentrate on your business with confidence.

Clear and Strategic Advice

We provide clear, actionable, and strategic advice that simplifies tax compliance for your property surveying business. Our experts streamline your financial processes, ensuring efficient and accurate tax reporting and documentation.

Robust Record-Keeping Systems

One of the most critical elements of handling HMRC investigations is having well-organised and accurate financial records. We assist you in setting up and maintaining robust record-keeping systems so that you’re always prepared for any potential HMRC enquiries or investigations.

HMRC Investigation Representation

Should an HMRC investigation occur, we act as your representative. Our team works directly with HMRC to resolve any issues quickly and effectively, minimising any disruption to your operations. We guide you through every step of the process, providing expert support and ensuring your business is well-represented.

Customised Tax Planning

We develop personalised tax planning strategies designed to optimise your business’s financial position and prevent future issues with HMRC. By planning ahead, we ensure that your tax liabilities are minimised and your business remains compliant with all relevant tax laws.

Focused on Reducing Stress

HMRC tax investigations can be stressful, but with Apex Accountants by your side, we aim to reduce that stress. Our team offers expert support throughout the process, handling the complexities of tax compliance so you can focus on growing and running your business without the worry of tax-related issues. At Apex Accountants, we are dedicated to helping your property surveying company stay compliant and navigate HMRC tax investigations smoothly. With our tailored solutions and hands-on approach, we ensure that your business is well-prepared and well-represented in the event of any tax enquiries. 

Conclusion

HMRC investigations don’t have to be daunting. Proper record-keeping, timely responses, and professional advice will make the process smoother. If you need assistance with a property surveyor’s tax investigation, Apex Accountants is here to help. Contact us today for expert support in managing HMRC compliance for your property surveying business.

How Payroll Planning For Construction Management Firms Reduces Rising Ni Costs

Posted on by Sidra

From April 2025, payroll costs for UK construction companies changed dramatically. Employer National Insurance (NI) contributions increased, thresholds dropped, and allowances shifted. For construction management teams already dealing with labour-intensive projects, subcontractor costs, and tight margins, these changes mean higher employment costs and tighter cash flow. At Apex Accountants, we recognise that payroll planning for construction management firms is not just about compliance. It is about protecting profit margins, keeping projects on budget, and ensuring that cash flow remains steady. The new National Insurance rules affect every site manager, project lead, and finance director in construction. Understanding these changes is the first step, but applying strategies to absorb their impact is what protects your business in 2025/26 and beyond.

Key Changes in Payroll Costs in UK

Higher employer NI rates for construction sector

The employer’s secondary Class 1 NI rate has increased from 13.8% to 15%. This rise means that for every £100 of wages above the threshold, an extra £1.20 of NI is now payable compared with 2024/25. While it may seem small per pound, multiplied across dozens or hundreds of employees, this adds thousands to annual labour costs.

Lower threshold for NI contributions

The secondary threshold was reduced from £9,100 to £5,000. This means NI contributions now begin much earlier in an employee’s earnings. The new rate impacts even lower-paid roles, significantly affecting firms that rely on large numbers of site labourers and administrative staff.

Increased Employment Allowance

The Employment Allowance doubled to £10,500, offering some relief. Companies can reduce their total NI bill each year until they use up the allowance. For smaller contractors, this increase is valuable, but for medium and large construction firms with high staff numbers, the allowance is quickly consumed.

Wider eligibility rules

From April 2025, businesses with more than £100,000 Class 1 NI liability can still apply for Employment Allowance. This opens the door for more construction firms to claim relief, though single-director payrolls are still excluded.

Why this matters for construction management companies

Labour costs are often the largest element of a construction project. Whether on-site or in the office, rising employer NI directly increases the cost of running payroll. The lower threshold means more employees now attract NI charges, and the higher rate increases the burden across all wage levels.

For firms operating on long-term contracts or fixed-price bids, these changes put direct pressure on profit margins. If tender prices were calculated before April 2025, employers could already be locked into contracts that fail to reflect the new NI costs. This creates a need for proactive planning to avoid eroding profitability.

Examples of Payroll Costs For UK Construction Companies 

  • Employee earning £35,000

Under old rules, annual employer NI was around £3,574. Under new rules, it rises to £4,500. That is an extra £926 for one employee.

Old: 13.8% × (£35,000 − £9,100) ≈ £3,574.

New: 15% × (£35,000 − £5,000) = £4,500.

Increase ≈ £926 per year.

  • Employee earning £45,000

The cost increased from £4,954 to £6,000, which is a rise of over £1,000 per year.

  • Team of 10 employees at £35,000 each

The combined extra employer’s NI is more than £9,200 per year. After applying the new Employment Allowance, the net increase is still almost £4,000.

Gross increase ≈ £9,260.

Extra EA headroom vs 2024/25 = £5,500 (from £5,000 to £10,500).

Net rise ≈ £3,760 if fully eligible.

For larger construction firms with multiple sites, the total impact can quickly run into tens or even hundreds of thousands of pounds each year.

Strategies to absorb higher payroll taxes

Rebuild labour budgets and bids

Construction companies should revisit their 2025/26 labour budgets with a 15% NI rate in mind. Every tender, framework, or variation order needs to factor in the increased cost. Failure to do so risks underpricing projects and eroding profit.

Make full use of Employment Allowance

Switch on the Employment Allowance in payroll systems from April and track its usage each month. For eligible firms, the £10,500 allowance can be used to offset the early part of the NI bill, giving welcome relief in the first quarter of the year.

Implement pension salary sacrifice schemes

Salary sacrifice arrangements help both the business and the employee. Every £1,000 redirected to pension contributions saves the employer £150 in NI at the new rate. For construction firms with large payrolls, this can generate substantial savings while also improving staff retention.

Adjust pay structure for owner-managers

For directors, revisiting the balance between salary and dividends is now more important. Keeping salary at an efficient level and using dividends for the remainder can reduce exposure to the 15% employer NI rate. Careful planning is needed to remain compliant with company law and HMRC requirements.

Target NI reliefs on apprentices and young workers

Hiring under-21s, apprentices under 25, or qualifying veterans provides significant savings because employer NI is not charged up to certain thresholds. For construction firms with training programmes, this relief not only saves money but also develops the workforce for future projects.

Strengthen CIS and subcontractor reviews

Construction companies often rely on subcontractors under the Construction Industry Scheme (CIS). Ensuring workers are genuinely self-employed avoids compliance risks and allows labour Costs should be managed to avoid unnecessary employer National Insurance contributions. However, misclassification risks penalties, so proper checks are vital.

Leverage Freeport and Investment Zone reliefs

If a construction site is based in a Freeport or Investment Zone, employers can access reduced NI rates for eligible new hires. This targeted relief can save thousands per project if applied correctly.

Control overtime and workforce planning

With NI costs higher, overtime becomes more expensive. Better rota planning, timesheet management, and linking labour reports to project milestones reduce unnecessary costs. This discipline is particularly valuable on long-running infrastructure projects.

Improve payroll accuracy and compliance

Errors in NI category letters or missed reliefs cost money. Payroll teams should be trained and systems updated to apply the correct NI letters for apprentices, under-21s, and veterans. Reconciling payroll against accounting records each month ensures nothing slips through unnoticed.

Pricing and tendering adjustments

Construction bids should now clearly show employer NI costs. By breaking down these costs transparently, firms can justify higher tender prices and avoid disputes with clients. For existing contracts, variation clauses should be reviewed to see if NI increases can be passed on where government policy changes affect project costs.

Cash flow management under the new rules

National Insurance is paid monthly alongside PAYE. For construction firms with hundreds of employees, the higher NI rate can create sharp monthly outflows. By forecasting NI liabilities and aligning them with milestone receipts or staged payments, businesses can avoid cash flow crises. Rolling 13-week cash flow forecasts are essential to anticipate peaks and troughs.

Apprenticeships and training benefits

Investing in apprenticeships delivers long-term value. NI relief for apprentices under 25 reduces immediate payroll costs, while government grants and training incentives further offset expenditure. Structured apprenticeship programs also address the ongoing skills shortage in construction, strengthening project delivery in the long run.

Payroll systems and technology controls

Payroll software must be updated with 2025/26 NI rates for the construction sector to avoid incorrect deductions. Automating employment allowance claims, applying the right NI letters, and setting alerts when thresholds are reached reduce human error. Quarterly reviews of audit trails also protect against HMRC queries.

Compliance checklist for construction payroll teams

  • Update payroll software with 2025/26 NI rates and thresholds.
  • Enable and track Employment Allowance from April.
  • Confirm NI category letters for under-21s, apprentices, and veterans.
  • Re-price tender templates and labour calculators with 15% NI built in.
  • Brief HR, finance, and site managers on new rules.

How Apex Accountants’ Payroll Planning for Construction Management Firms Help

At Apex Accountants, we specialise in payroll and tax planning for construction firms. We can:

  • Model NI costs across different workforce scenarios.
  • Re-price live bids and framework contracts with updated NI figures.
  • Set up salary sacrifice, pension planning, and Employment Allowance claims.
  • Train payroll teams on NI category letters and subcontractor status checks.
  • Provide dashboards that track NI drift against budgets each month.

Our goal is to help construction companies remain profitable and compliant while adapting to the new payroll environment. Contact Apex Accountants today for a 30-minute free payroll planning consultation. We will review your payroll, model the impact of the 2025/26 NI changes, and suggest practical strategies tailored to your business.

Crackdown on Tax Avoidance in Construction Management Sector 

Posted on by Sidra

HMRC is escalating its fight against avoidance in July 2025. The pressure falls squarely on tax avoidance in the construction management sector. Draft rules target promoters, with universal stop notices and tougher sanctions. AI tools and larger compliance teams raise the chance of checks. CIS, IR35, and VAT processes face closer review. This article outlines the changes, highlights risk hotspots, and sets out practical steps to stay compliant. Apex Accountants provides clear guidance tailored to construction managers.

Background: 

HM Revenue & Customs (HMRC) is tightening its grip on tax avoidance. On 21 July 2025—the UK’s “Legislation Day”—the government released draft legislation targeting promoters of marketed tax‑avoidance schemes. The proposals would criminalise failing to notify HMRC about such arrangements and introduce universal stop notices and promoter action notices to prevent marketing of these schemes. HMRC’s Transformation Roadmap emphasises closing the tax gap with technology and artificial intelligence (AI), and the authority has already confirmed it uses AI to monitor data and detect unusual patterns.

HMRC is increasing capacity with £1.6 billion. This will fund 5,000 extra compliance officers and 1,800 debt-management officers. The staffing increase represents a 10% uplift. AI and data analytics will help flag suspicious patterns. Whistleblower incentives will encourage reporting of avoidance schemes. For construction management companies, these changes signal a tougher compliance environment.

Why construction managers should pay attention

Construction projects often involve multiple subcontractors, temporary workers, and complex supply chains. This complexity makes the sector attractive to promoters of aggressive tax schemes—such as misclassified off‑payroll arrangements or artificial employer structures. HMRC’s expansion of compliance teams means more scrutiny. Universal stop notices could ban entire categories of schemes, while promotion action notices may require banks, agencies, and advertisers to stop servicing promoters. Phoenix schemes that relaunch under new names will no longer escape attention. Therefore, construction managers must ensure their tax planning is robust, transparent, and defensible.

Key features of the July 2025 crackdown

The July 2025 announcements comprise several measures designed to dismantle tax‑avoidance schemes and empower HMRC:

  • Tighter legislation: Finance Bill 2025‑26 drafts make it a criminal offence for promoters to fail to notify HMRC about avoidance arrangements. Universal stop notices and promoter action notices would allow HMRC to prohibit the promotion of described schemes and impose penalties or criminal sanctions.
  • Expanded compliance workforce: HMRC will recruit 5,000 additional compliance officers and 1,800 debt-management officers, increasing the likelihood of checks and the pursuit of unpaid taxes.
  • Use of AI and data analytics: HMRC is investing in advanced data analytics and AI to identify unusual patterns and red flags. Its Transformation Roadmap explicitly calls for harnessing AI’s potential, and blogs explain that AI will uncover issues previously missed.
  • Universal stop notices: Current stop notices target specific promoters; universal stop notices would ban any scheme matching a description. Sanctions include publishing promoter details, fines and up to two years’ imprisonment.
  • Promoter action notices: These notices will compel intermediaries—banks, employment agencies, advertisers—to stop providing services to promoters, disrupting the supply chains that support avoidance schemes.
  • New information powers: HMRC proposes connected‑party information notices and promoter financial institution notices to obtain details about avoidance schemes and connected parties.

HMRC tax avoidance list

HMRC maintains and regularly updates a tax avoidance list. This public list names schemes and promoters that the tax authority believes to be non-compliant. Being associated with anything on this list can damage a company’s reputation and invite detailed enquiries. 

For construction management companies, it is important to check the HMRC tax avoidance list before engaging with advisers or intermediaries. Working with a supplier, umbrella company, or payroll agency associated with schemes on the list could expose your business to penalties. Using the list as a reference point when conducting due diligence helps construction managers steer clear of high-risk arrangements and maintain transparency in their tax affairs.

A common question is: are tax avoidance schemes legal? Technically, many marketed schemes operate within the letter of the law. However, HMRC challenges such arrangements if they exploit loopholes or lack genuine commercial substance. While tax avoidance is different from tax evasion—which is outright illegal—the line is thin, and the risks are significant. 

Construction managers who participate in schemes later deemed abusive may face backdated tax bills, penalties and interest. HMRC’s July 2025 crackdown demonstrates that legality is not a safeguard; even if a scheme appears lawful, it can still be investigated and shut down. The safest approach is to rely on genuine tax planning strategies, supported by professional advice, rather than schemes designed to artificially reduce liabilities.

Practical compliance tips for construction management companies

  1. Seek professional advice: A qualified tax adviser can clarify the line between legitimate tax planning and avoidance and help you comply with Construction Industry Scheme (CIS) rules, IR35 off-payroll regulations, and VAT reverse charge rules.
  2. Avoid aggressive tax planning: schemes promising large tax savings through complex structures attract HMRC’s attention, and users are rarely shielded from liability. Ensure any planning has genuine commercial substance.
  3. Keep thorough records: with AI-driven analysis, anomalies are more likely to be flagged. Maintain accurate, digital records of subcontractors’ payments, labour costs, CIS deductions, VAT invoices, and payroll data. Digital record-keeping also prepares you for Making Tax Digital (MTD) requirements.
  4. Verify subcontractor status: Under CIS, contractors must verify subcontractors and deduct the correct tax. Misclassification can lead to penalties. Document the terms of engagement to show whether workers are genuinely self‑employed.
  5. Train staff and monitor supply chains:Educate project managers and finance teams to spot and reject avoidance schemes—especially those promoted via umbrella companies or marketing agencies. Please ensure thorough due diligence is conducted on intermediaries, and if a supplier receives a promoter action notice, kindly discontinue engagement promptly.
  6. Embrace transparency: HMRC is investing in data sharing and international cooperation. Being cooperative during compliance checks can reduce penalties, and voluntary disclosure facilities allow you to correct errors before they become investigations.

How Apex Accountants Protects You From Tax Avoidance In Construction Management Sector 

Apex Accountants specialises in guiding construction businesses through complex tax landscapes. We stay on top of legislative changes and industry trends, so you don’t have to.

  • Tailored tax advice: We help you understand and comply with CIS obligations, IR35 off‑payroll rules and VAT reverse‑charge requirements. Our experts structure projects and contracts to minimise risks while maintaining compliance.
  • Compliance health checks: Our team reviews your processes and records—payroll, subcontractor verification, CIS deductions and VAT—identifying gaps and recommending improvements to strengthen your systems.
  • Training and education: We provide in-house training for project managers, finance teams, and directors on identifying avoidance schemes, verifying subcontractors, and maintaining digital records.
  • Digital record‑keeping solutions: We assist in implementing cloud‑based accounting platforms aligned with MTD requirements. Digital records support timely reporting and help identify discrepancies before HMRC does.
  • Representation during HMRC enquiries: Should you receive a compliance check, our specialists liaise with HMRC on your behalf, protecting your rights and resolving issues efficiently.
  • Ongoing updates and alerts: We keep clients informed about new HMRC guidance, policy changes, and consultation outcomes. Early awareness of developments—such as universal stop notices—allows you to adjust practices before changes become mandatory.

Conclusion

HMRC’s July 2025 announcements represent a major escalation in the fight against tax avoidance. With tougher legislation, larger compliance teams and AI‑driven risk analysis, businesses—especially those in construction—can expect greater scrutiny. Universal stop notices and promoter action notices will make it harder for promoters to rebrand schemes. Failing to notify HMRC about arrangements will be a criminal offence. By acting proactively, working with trusted advisers, and embracing transparency, construction management companies can stay compliant. This will help protect their long-term stability. Apex Accountants is here to guide you through this evolving landscape.

Expert Guide on MTD for Construction SMEs in the UK

Posted on by Sidra

Making Tax Digital for Income Tax Self-Assessment (MTD ITSA) is transforming how sole traders and landlords report their income. HM Revenue & Customs (HMRC) now requires digital recordkeeping and quarterly updates through approved software. MTD for construction SMEs is particularly important, as firms in this sector often manage complex projects, multiple subcontractors and a high volume of transactions. By moving to a digital accounting platform early, construction businesses can simplify compliance while gaining clearer visibility of profitability and cash flow.

Who must follow MTD for Income Tax

Sole traders and landlords must use the MTD ITSA service if they are registered for self-assessment, their business or property income exceeds a threshold and they keep records digitally. HMRC determines whether you must comply by looking at your qualifying income — the gross turnover from self‑employment plus receipts from property before deducting expenses. Partnerships and limited liability partnerships will join later.

Making Tax Digital ITSA Deadlines

The roll-out of MTD for Income Tax Self-Assessment is phased. Your starting date depends on your qualifying income:

  • If your qualifying income is over £50,000 in the 2024-25 tax year, you must comply from 6 April 2026.
  • If your qualifying income is over £30,000 in the 2025-26 tax year, you must comply from 6 April 2027.
  • The government also plans to legislate to lower the threshold further. Those with income over £20,000 are expected to be brought into MTD. While initial guidance referred to 2026-27, a technical note issued in March 2025 suggested this expansion could instead take effect from April 2028.

If you fall within these categories, HMRC will write to you after reviewing your latest Self Assessment return and confirm when you must start using MTD ITSA service. However, it is your responsibility to check whether you need to sign up and ensure you have software in place.

What MTD means for construction firms

  • Quarterly updates instead of annual returns. Businesses must send a summary of income and expenses to HMRC every three months through approved software. At year-end, you will finalise your figures and submit a “Final Declaration” digitally.
  • Digital record‑keeping. Paper records and most manual spreadsheets will no longer be accepted. You will need software or bridging tools that can record each transaction and categorise income and costs correctly.
  • Compatible software. HMRC maintains a list of MTD‑compatible packages. These include cloud‑based accounting systems that integrate bank feeds, invoicing, expense capture and CIS calculations. Cheap bridging tools exist to convert spreadsheets into digital submissions, but using full cloud software will provide better control for complex construction projects.

Why construction SMEs should act now

Avoid last‑minute disruption

MTD ITSA starts in April 2026 for higher‑earning sole traders and landlords and will extend to those earning over £30,000 a year later. Construction companies often have high turnover and cash flow peaks, so many directors will fall within the first two phases. Waiting until the eve of the mandate could leave you scrambling to transfer paper records or outdated software into a compliant system. Early adoption allows you to iron out issues and train staff.

Improve accuracy and business insight

Cloud accounting tools automatically import bank transactions and allow you to create invoices and record subcontractor payments in real time. This helps reduce human error and ensures you capture all costs. With digital records you can monitor each project’s profitability and cash flow. Accurate quarterly updates reduce the risk of HMRC penalties and make year‑end closing smoother.

Streamline VAT and CIS compliance

Many construction firms already use MTD for VAT. Cloud accounting software can handle both VAT and the Construction Industry Scheme (CIS), automatically calculating deductions for subcontractors and generating monthly CIS returns. Combining VAT, CIS, and MTD ITSA in one system minimises duplication and ensures consistency.

Unlock collaboration with your accountant

Using the cloud means your accountant can access your books in real time, correct mistakes and provide timely advice. When it is time to submit quarterly updates, your accountant can check the data and manage the submission on your behalf. It also makes it easier to prepare management accounts and budgets.

Steps to prepare for MTD for Construction SMEs

  1. Review your income levels. Estimate your qualifying income for the tax years 2024‑25 and 2025‑26. If your turnover exceeds £50,000 or £30,000, respectively, plan for MTD from April 2026 or April 2027.
  2. Choose suitable software. Research cloud accounting packages that offer MTD-compatible submissions and features suitable for construction, such as job cost modules, CIS, and retention tracking. Avoid low‑cost bridging tools unless your transactions are simple.
  3. Digitise your records. Start keeping receipts, invoices and bank transactions in a digital format. Use smartphone apps to capture receipts on site. Please ensure each payment to subcontractors and suppliers is recorded promptly.
  4. Set up bank feeds. Link your business bank accounts to your accounting software to automate transaction entry and reconciliation. This saves time and improves accuracy.
  5. Train your team. Ensure finance staff and project managers understand the new processes. Run parallel records to test the system and make corrections before going live.
  6. Seek professional help. Work with an accountant experienced in the construction sector. At Apex Accountants, we help clients assess their readiness, choose software, and migrate data smoothly.

The future of MTD

Government policy continues to evolve. The Spring Statement 2025 signalled an intention to bring taxpayers with income over £20,000 into MTD from April 2028. Digitalisation may eventually apply to all self-assessment customers. Partnerships and limited companies are likely to be mandated later, but no dates have been announced. Keeping up with current trends will facilitate the management of future changes.

How Apex Accountants’ MTD Services for Construction Management Firms Help

At Apex Accountants, we guide construction companies through every step of MTD preparation:

  • Software setup – Selecting and implementing HMRC‑approved cloud systems.
  • Digital record‑keeping – Training teams to capture invoices and receipts correctly.
  • Quarterly submissions – Managing ongoing MTD reports to HMRC.
  • Tax planning – Linking digital records to wider strategies for cash flow and profitability.
  • Sector expertise – Tailored advice for construction projects, subcontractor management and compliance with CIS.

Final thoughts

Making Tax Digital for Income Tax is a significant shift for construction SMEs, but it also represents an opportunity. By embracing digital record‑keeping and cloud accounting now, you reduce the risk of non‑compliance and acquire invaluable knowledge about your business. As the deadlines approach, talk to Apex Accountants about planning your MTD journey. Our MTD services for construction management firms ensure your business remains compliant, efficient and profitable in the digital tax era.

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