VAT Reverse Charge Advisory That Prevents Costly Errors
Since March 2021, most construction supplies between VAT-registered, CIS-registered businesses no longer carry VAT on the invoice — the customer accounts for it instead. Get your invoicing, end-user checks, and VAT returns built correctly the first time, so you never over-charge, under-reclaim, or trigger an HMRC penalty.
- Reverse Charge Compliance Specialists
- CIS Refund Specialists
£3.1m+
CIS Recovered
100 %
HMRC & MTD Ready
50+
Five-Star Reviews
Construction
Tax EXPERTS
Fixed Fee
No hidden charges
HMRC Compliance
Who We Are
Accountants who make reverse charge invoicing simple
The domestic reverse charge shifts responsibility for VAT from supplier to customer on specified construction services, but only when both parties are VAT and CIS registered and the customer is not an end user. We build the invoicing templates, confirm end-user status in writing, and make sure your VAT returns reflect the reverse charge correctly on every transaction.
End-user and intermediary supplier status confirmation, documented in writing
Reverse charge invoice templates built into your existing software
End User & Intermediary Determination
Know exactly who is, and isn’t, an end user
An end user is a VAT and CIS-registered business that receives specified construction services but does not make onward supplies of those services, for example, a developer building on its own land. If your customer qualifies as an end user or intermediary supplier and confirms this in writing, the reverse charge does not apply and normal VAT rules resume.
Getting this classification wrong in either direction means either wrongly charging VAT that should have been reverse-charged, or wrongly reverse-charging a supply that should have carried VAT as normal — both trigger HMRC scrutiny.
100%
CIS Compliance Rate
Getting Your VAT Returns Right
Reverse charge accounted for correctly, return after return
Under the reverse charge, the customer declares both the output VAT and, where applicable, the input VAT on the same return, while the supplier’s invoice shows no VAT charged at all. Since 1 March 2021, unless services are supplied to an end user, businesses within the reverse charge no longer receive VAT on construction services and only end users pay VAT out on those supplies.
We map every contract to determine reverse-charge applicability, apply the correct treatment on your VAT return, and monitor cash flow impact, since reverse charge suppliers no longer collect VAT to hold before their quarterly payment.
Common Pain Points
Where Reverse Charge Goes Wrong for Construction Businesses
The reverse charge is one of the most error-prone areas in construction VAT, and mistakes surface quickly during HMRC checks.
Missing or Undocumented End-User Confirmation
Without written confirmation of end-user status, HMRC will not accept that the reverse charge should have been excluded, regardless of the actual facts.
Charging VAT When Reverse Charge Should Apply
Invoicing normally on a supply that should have been reverse-charged creates a VAT liability the customer may refuse to pay, and a correction that eats into margin.
Reverse-Charging Supplies to Non-VAT-Registered Customers
The reverse charge only applies between VAT-registered, CIS-registered businesses; applying it to a domestic customer or non-registered business is incorrect and must be reversed.
Cash Flow Shock From Losing VAT Held
Subcontractors who previously held VAT between invoicing and their VAT return now hold none on reverse-charged supplies, which can strain cash flow if not planned for.
Confusion on Mixed Contracts
Contracts involving both end-user and non-end-user elements, or a mix of specified and non-specified services, are frequently coded incorrectly across the whole invoice.
Free Consultation
Let’s talk about your construction accounting challenges
Book a 30-minute call with our specialist accountant for construction business. We’ll look at how your business is set up and flag quick wins you can act on straight away.
- CIS and VAT reverse charge handled correctly
- Deep expertise in contractor, subcontractor tax rules
- Forward-looking advice, not just year-end filing
- Transparent fixed fees, no surprises
Our Services
Complete VAT Reverse Charge Advisory for Contractors and Subcontractors
From day-to-day bookkeeping to year-end returns and refunds, we handle the accounting side so you can focus on the trade.
End-User & Intermediary Status Reviews
We assess every customer relationship and secure written confirmation of end-user or intermediary status where it applies.
Reverse Charge Invoice Templates
We set up your invoicing software so reverse charge supplies are flagged and worded correctly, automatically.
VAT Return Preparation
We apply the correct reverse charge treatment on every return, avoiding over- or under-declared VAT.
Cash Flow Planning for Reverse Charge Impact
We forecast the effect of no longer holding VAT on reverse-charged supplies and adjust your working capital plan accordingly.
Contract Review for VAT Treatment
We review new contracts before signature to flag reverse charge, VAT liability, or end-user issues in advance.
HMRC Query & Dispute Handling
We manage any HMRC correspondence relating to reverse charge treatment directly on your behalf.
A Simple, Fast Onboarding Process
Four stages from enquiry to full onboarding
Moving to a new accountant mid-contract feels risky, so we have built a process designed to protect your CIS records, VAT position and ongoing site work throughout.
Initial Consultation
A free 30-minute call to walk through your current contracts, subcontractor arrangements and any outstanding CIS or VAT issues.
Custom Fee Proposal
Within 48 hours, you receive a fixed-fee proposal built around your actual contract volume and subcontractor headcount, not a generic package.
Coordinated Transition
We contact your current accountant directly to transfer CIS records, VAT history and working papers without any gaps in compliance.
Continued Support
Once onboarded, our accountant remains your single point of contact for every contract, HMRC query and financial decision going forward.
Client Stories
Real feedback from real construction businesses
Over 60 verified five-star reviews from subcontractors, contractors and developers across the UK.
★★★★★
“I’d been under-claiming CIS repayments for two years without realising it. They found and recovered £14,000 within weeks of taking us on. Nobody had ever explained the scheme to me this clearly before.”
★★★★★
“We had no real idea which contracts were making money until they built us a proper job-costing system. Now we price the next tender based on actual data, not guesswork.”
★★★★★
“Every site brings its own VAT and SDLT questions, and they have never once been slow to answer. Switching from our old firm was the easiest financial decision we have made in years.”
Why Choose US
Why choose Construction Tax Accountants
Dedicated Accountant
Your dedicated accountant already knows your subcontractor list, your live contracts and your VAT position, so every call picks up exactly where the last one left off.
ACCA Qualified Team
Registered as Chartered Certified Accountants, providing you with expert advice you can rely on and trust completely.
Transparent Fixed Fees
You will never receive an unexpected invoice. All fees are fixed, all-inclusive and agreed upfront, with no hourly rates and no extra charges for additional advice or HMRC queries.
Repayments Chased, Not Just Filed
We do not wait for HMRC to process your CIS repayment in its own time. We track every claim and follow up until it is paid.
Cloud Systems Built for Site-Based Businesses
We work across Xero, QuickBooks and FreeAgent, integrated with CIS and job-costing tools so your figures are accurate whether you are in the office or on site.
Beyond the Numbers
We connect clients with invoice-finance providers, contractor-insurance brokers and CITB levy specialists as part of the relationship, not as an upsell.
FAQS
Commonly Asked Accounting Questions about VAT Reverse Charge Advisory
What is the VAT domestic reverse charge for construction?
It’s a rule requiring the customer, not the supplier, to account for VAT on most specified construction services between VAT-registered, CIS-registered businesses.
Who counts as an "end user" under the reverse charge?
A VAT and CIS-registered business receiving specified services for its own use, rather than to make onward supplies of those services — for example, a developer building on land it owns.
Does the reverse charge apply to domestic customers?
No. Domestic customers and consumers are not required to confirm end-user status, and VAT should be charged in the normal way.
What happens if I charge VAT on a supply that should have been reverse-charged?
The invoice is incorrect and must be corrected; your customer may also refuse payment of the VAT element until it is fixed.
Will the reverse charge affect my cash flow?
Yes, potentially. Suppliers no longer collect and hold VAT on reverse-charged supplies between invoicing and their VAT return, which we factor into your cash flow forecasts.
Why choose Construction Tax Accountants for reverse charge advisory?
We handle end-user determination and reverse charge invoicing daily across construction clients, so classification errors that generalist accountants miss are caught before they reach your VAT return.
Still have questions?
Our construction accountants are ready to answer any questions about your specific tax situation with no obligation for an initial conversation.
- Mon–Fri, 9am–5:30pm