Groundworks, Civil Engineering & Utilities – Limited Companies

Specialist accounting for groundworks contractors, civils firms and utilities contractors operating through a UK limited company.

Who this is for

This package is aimed at limited companies whose main activities include:

  • Groundworks and foundations for housing, commercial or infrastructure projects
  • Civil engineering works – drainage, roads, structures, retaining walls
  • Utilities installation – water, gas, power, fibre and related ducting
  • Enabling works, site prep, muck shifting and reinstatement

Typical income and project types

  • Residential site groundworks and plots for housebuilders
  • Commercial civils packages for main contractors and developers
  • Adoption works for local authorities, utilities and housing associations
  • Planned and reactive utilities work – connections, diversions and repairs
  • Subcontract work on larger infrastructure and utilities frameworks

We help you distinguish between labour, plant, materials and subcontract elements, so your margins and taxable profit on each project are clear.

Common allowable expenses for groundworks & civils Ltd companies

Usual allowable costs (when wholly and exclusively for the business) include:

  • Aggregates, concrete, blocks, pipes, ducts, chambers and manholes
  • Reinforcement steel, mesh, shuttering, formwork and fixings
  • Fuel, lubricants and consumables for plant and machinery
  • Plant hire – excavators, dumpers, rollers, telehandlers and attachments
  • Small tools – breakers, compactors, saws, lasers and levels
  • PPE and safety gear – helmets, boots, hi-vis, gloves, eye and hearing protection
  • Site welfare and security – cabins, toilets, fencing, lighting and CCTV hire
  • Waste disposal – skips, muck-away, inert and contaminated spoil removal
  • Surveying and setting-out costs – surveyors, GPS, hired equipment
  • Insurance – public liability, employers’ liability, hired-in plant cover
  • Vans and vehicles – fuel, insurance, servicing and road tax (business use)
  • Training and tickets – CSCS, CPCS, NPORS and safety courses
  • Office overheads – software, payroll, phones, stationery and accountancy fees

Big-ticket items (owned plant and machinery, larger vehicles, site cabins, etc.) are usually treated under capital allowances so you still receive tax relief but in a structured way in line with HMRC rules.

CIS, VAT reverse charge and framework contracts

Most groundworks and civils companies are heavily embedded in the construction chain:

  • Working as subcontractors under CIS for main contractors and developers
  • Employing subcontract gangs and specialist crews, also under CIS
  • Dealing with VAT reverse charge on certain construction supplies
  • Operating on framework agreements and long-running contracts

We reconcile CIS suffered and deducted, review whether the VAT reverse charge applies to your customers and help keep your accounts aligned to contract terms (applications, valuations and certificates).

Work in progress, retentions and variations

Groundworks and civils projects almost always involve:

  • Work in progress at year-end – part-complete sections and phases
  • Retentions held until completion or after defect periods
  • Variations and additional works agreed after the original contract value

We take a practical approach to WIP, valuations, retentions and variations so your accounts show a fair and realistic profit for the year without over- complicating things.

What we need from you to file accounts & CT600

To prepare your year-end accounts and corporation tax return smoothly, we’ll ask for:

  • Business bank statements and any company credit/finance statements
  • Sales invoices and applications for payment, including certificates where used
  • Contract summaries – values, key dates and retention arrangements (simple list is enough)
  • Purchase invoices from merchants, concrete plants, aggregate suppliers and plant hire firms
  • Plant and vehicle purchase or finance agreements
  • Subcontractor invoices and CIS deduction details
  • Payroll reports for site staff and management
  • Details of any major disputes, claims or variations still unresolved at year-end

Once we have these, we reconcile your income and costs, assess WIP and retentions at year-end, calculate corporation tax, check CIS and VAT treatment and file your accounts and CT600 with HMRC and Companies House.

Fixed-Fee Package for Groundworks & Civils Ltd

£875 + VAT
Typical fee for a small groundworks, civils or utilities contractor
(turnover up to £300k, 1–2 directors, straightforward records).
  • Preparation of year-end statutory accounts
  • Corporation tax return (CT600) and submission to HMRC
  • Companies House micro/small accounts filing
  • Director payroll for up to 2 directors
  • Reconciliation of CIS suffered and basic review of CIS deducted
  • High-level review of VAT & reverse charge position
  • Practical review of WIP and retentions at year-end
  • Email support up to filing deadlines
Add-ons (only if needed)
+ £30 + VAT per monthly VAT return (MTD compliant)
+ £30 + VAT per monthly CIS return (if you have subcontractors)
+ from £40 + VAT/month for bookkeeping if we process bank & invoices
+ from £225 + VAT for older / overdue accounting periods
+ bespoke quote for turnovers above £300k or multi-crew operations
Start my Ltd company accounts Book a 15-minute call
Quick FAQs for Groundworks, Civils & Utilities
Q: Are muck-away and skip costs allowable?
A: Yes, waste disposal and muck-away directly related to your groundworks or civils projects are normally allowable business expenses.
Q: We own some plant and hire in the rest – how does that work for tax?
A: Hire costs are expensed as you go. Owned plant is treated as a capital asset and relieved using capital allowances, so you still obtain tax relief, often with generous first-year allowances depending on current rules.
Q: How do you deal with long-running contracts and WIP?
A: We take a practical approach based on simple valuations and job summaries rather than complex contract accounting, so the accounts remain clear while still reflecting the true level of work completed.
Q: We’re on competitive frameworks and rates change – is that a problem?
A: No. We work from the invoices, applications and certificates you actually issue and receive; framework rates simply underpin those amounts.
Q: Does high-risk trade insurance cause any tax issues?
A: Higher premiums for groundworks, civils and utilities are still allowable as long as they relate to your business activities. We ensure they’re correctly recorded and matched to the right period.