Accountants for Security Guarding Companies in the UK

Security guarding in the UK has become more vital than ever, with growing demand across retail, corporate, and event sectors. As threats become more complex, reliable protection is no longer optional—it’s expected. Security guarding in the UK is evolving rapidly, driven by new legislation, technological advancements, and shifting public expectations. In 2024, the private security sector generated £8.8 billion in revenue, reflecting steady demand despite economic pressures. The introduction of Martyn’s Law and increased collaboration between private firms and police forces are reshaping the industry. As threats grow, accountants for security guarding companies play an important role in supporting these firms behind the scenes—providing accounting services for security companies that keep them compliant, financially stable, and ready for growth while security guards safeguard businesses, events, and public spaces across the UK.

With over 20 years of experience, Apex Accountants & Tax Advisors supports security firms with tailored accounting, tax, and payroll services—so they can stay focused on protection while we handle the numbers through our bespoke accounting services for security companies.

Market Insights: UK Security Guarding Sector in 2025

• Market Size and Growth

The UK private security services market is projected to reach £8.8 billion in revenue by 2025, experiencing a compound annual growth rate (CAGR) of 0.8% over the five years leading up to 2024.

• Legislative Impact: Martyn’s Law

The Terrorism (Protection of Premises) Act 2025, commonly known as Martyn’s Law, was enacted in 3 April 2025. This legislation mandates that venues with a capacity exceeding 200 individuals implement comprehensive security measures and staff training to respond to potential terrorist threats. Larger venues accommodating over 800 people are required to adopt enhanced security protocols, including the installation of CCTV systems and increased security personnel.

• Technological Integration

The sector is increasingly embracing AI-driven surveillance, hybrid cloud solutions, and smart security devices to bolster threat detection and response capabilities. AI-powered analytics are being utilized to enhance protection, streamline operations, and reduce losses. 

• Workforce Expansion

The demand for security personnel has led to a significant increase in the workforce. Between Q4 2021 and Q2 2022, the number of security guards in the UK rose from 142,000 to a peak of 157,300, reflecting the sector’s rapid growth and the heightened need for security services.

These developments underscore the sector’s resilience and adaptability in the face of emerging challenges. As the industry continues to evolve, businesses must stay informed and agile to capitalise on new opportunities and meet the growing demand for comprehensive security solutions.

Specialist Tax & Accounting Services for the Security Guarding in UK

Security firms face a unique set of financial challenges—from managing mobile teams and variable shifts to staying compliant with ever-changing legislation. At Apex Accountants & Tax Advisors, we work closely with security companies to handle the financial details through our bespoke accounting services for security companies, so they can concentrate on safeguarding people and property.

Clear Financial Oversight

We maintain accurate financial records, track operational spending, and deliver clear reports—giving you full control over your business finances.

Reliable Payroll for Shift-Based Teams

Whether you’re managing rotating shifts or 24/7 site cover, we process payroll for security guarding staff accurately and on time, including RTI filings and auto-enrolment.

VAT Management Made Simple

From first-time VAT registration to digital returns under MTD, we help you stay on top of VAT compliance for security firms without the paperwork burden.

Subcontractor and CIS Reporting

If your workforce includes subcontracted guards, we manage CIS deductions, filings, and reports—offering precise CIS reporting for subcontracted guards that ensures HMRC compliance and reduces errors.

Tax Planning with Compliance in Mind

We guide you through tax-saving opportunities specific to security businesses while keeping everything in line with current regulations.

Support for Contracts and Tendering

Preparing to win a new contract? We provide accurate forecasts, budgets, and financial documents that help you stand out during the tender process.

Smart Software Solutions

Apex Accountants helps implement and manage accounting tools like Xero, Sage, and FreeAgent—offering flexibility and real-time access wherever your team operates.

Challenges Faced by Security Guarding Companies in the UK

1. Compliance with Martyn’s Law

Security firms must now comply with the Terrorism (Protection of Premises) Act 2025—Martyn’s Law—which requires enhanced risk assessments, trained personnel, and documented response plans. For smaller firms, this increases costs and administrative pressure.

2. Payroll Complexity

With rotating shifts, night allowances, weekend premiums, and overtime, payroll for security guarding staff is often complex. Mistakes can lead to fines, staff disputes, or loss of contracts due to non-compliance.

3. Managing Subcontractors and CIS

Many firms rely on subcontracted guards, especially for temporary assignments or event-based work. CIS reporting for subcontracted guards adds another compliance layer, with risks of penalties if handled incorrectly.

4. Rising Operational Costs

From equipment to insurance and training, costs are climbing. Inflation and wage increases further tighten profit margins, especially in contracts with fixed pricing.

5. VAT Compliance

Security firms often deal with multi-site operations and mixed taxable/exempt services. This complicates VAT compliance for security firms, requiring expert oversight to avoid costly errors.

6. High Staff Turnover

Security roles often suffer from high turnover rates. This increases onboarding and training costs and can weaken contract performance and customer trust.

7. Technology Adoption and Integration

While smart surveillance and AI solutions are on the rise, many security companies struggle to finance or integrate new technologies due to budget constraints or a lack of in-house IT expertise.

8. Tendering and Competitive Bidding

Winning contracts often means underbidding. Without strong financial forecasting and costing, firms risk securing unprofitable contracts or missing out due to poorly presented tenders.

9. Cash-Flow Fluctuations

Late client payments and long payment cycles can create severe cash-flow gaps—especially when payroll must be met weekly or fortnightly.

10. Insurance and Legal Liabilities

Security firms must carry extensive insurance, from public liability to professional indemnity. Rising premiums and legal exposures (especially in incidents involving guards) pose an ongoing risk.

Why Apex Accountants & Tax Advisors

• Industry-Specific Knowledge – We work with security guarding companies across the UK, providing advice based on real sector challenges.
  
• Comprehensive Payroll Services – We manage complex staff wages, including shift differentials, RTI submissions, holiday pay, and pensions.
  
• VAT Compliance Expertise – Our specialists handle registration, digital returns, and sector-specific advice to maintain accurate VAT positions.
  
• CIS Reporting for Subcontracted Guards – Precise submissions and timely advice keep your labour compliance spotless.
  
• Support with Tendering and Financial Forecasting – We prepare accurate projections and supporting financials to improve your chances of winning contracts.
  
• Cloud Accounting and Software Integration – We implement and support systems like Xero, Sage, and FreeAgent to give you real-time financial control.
  
• Dedicated Point of Contact – You’ll have direct access to a dedicated accountant who understands your business and supports you year-round.

At Apex Accountants & Tax Advisors, we do more than just balance your books—we help you build a stronger, compliant, and financially secure security business. With sector expertise and practical support, we’re here to make running your firm simpler and more efficient.