CIS construction tax trades Slough coverage starts with the two rules that trip up most subcontractors. The Slough Trading Estate is one of the largest business parks in Europe, and the volume of commercial construction, fit-out, and maintenance work it generates supports a large population of subcontractors and small construction businesses across Slough. If you work in construction or trades in the area, CIS deductions and the VAT domestic reverse charge are the two rules most likely to trip you up, and both directly affect how much cash actually lands in your account.
- How CIS deductions actually work
- The VAT domestic reverse charge for construction
- Applying for gross payment status
- Expenses subcontractors commonly miss
- Sole trader or limited company for tradespeople?
CIS construction tax trades Slough: how CIS deductions actually work
If you’re a subcontractor working for a contractor on Slough Trading Estate or elsewhere, tax is usually deducted from your payments before you receive them, at 20% or 30% depending on your registration status. This isn’t your final tax bill, it’s a payment on account, and most subcontractors are actually due a refund once their real tax liability is worked out against what’s already been deducted. Getting your tax return filed properly is what actually gets that refund back to you.
The VAT domestic reverse charge for construction
Since the reverse charge came in, VAT-registered subcontractors in most construction supply chains no longer charge VAT to a contractor further up the chain, the contractor accounts for it instead. This changes how your invoices should be worded and can significantly change your cash flow, since you’re no longer collecting VAT to hold onto between filing periods. Getting this wrong on an invoice is one of the more common compliance mistakes in the sector.
Applying for gross payment status
Once you’ve built a track record of compliance, applying for gross payment status means contractors pay you in full without deducting CIS tax, which is a significant cash flow improvement for an established subcontractor. HMRC has specific turnover and compliance requirements for this, and it’s worth planning towards rather than assuming it happens automatically.
Expenses subcontractors commonly miss
Tools and equipment, protective clothing and PPE, van costs and mileage, and public liability insurance are all generally allowable, and are commonly under-claimed by tradespeople doing their own tax return from memory rather than proper records.
Sole trader or limited company for tradespeople?
This part of our CIS construction tax trades Slough guide covers the structure question. Many subcontractors start as sole traders and move to a limited company once income grows, since a limited company can be more tax efficient at higher income levels and offers liability protection. Whether it’s the right move now depends on your income, your client base, and how you plan to grow.
NDCA works with subcontractors and small construction businesses across Slough on a fixed monthly fee, with a named accountant who understands CIS, the reverse charge, and gross payment status applications. This CIS construction tax trades Slough guide covers the situations that catch subcontractors out most often. For official guidance, see HMRC’s guidance on the Construction Industry Scheme.
Can you help me apply for gross payment status?
Yes, we review your eligibility and prepare the application, and can advise on what to fix first if you’re not quite there yet.
Do you handle the VAT reverse charge correctly?
Yes, we make sure your invoices and VAT returns reflect the reverse charge correctly so you’re not over or under-accounting for VAT.
Do you have an office in Slough?
No. NDCA is remote first, with construction clients across the UK. Slough clients work with us over video and phone, fitting around site hours.
Areas we cover
NDCA works with clients across the following regions. If you’re based in one of these areas, our team can help with the accounting issues covered in this article.
