Introduction
Running a construction business means juggling countless moving parts. You’re delivering projects, coordinating subcontractors, managing employees, updating clients, and keeping up with HMRC deadlines — all while navigating fluctuating cash flow, rising material costs, and the complexities of CIS. It’s no surprise that many construction directors feel stretched thin.
That’s why choosing the right accountant isn’t just about crunching numbers. It’s about having a partner who understands the construction sector inside out — someone who speaks your language, reduces your workload, and gives you confidence that your finances are under control. From payroll and CIS to cash flow planning and tax strategy, the right accountant strengthens your business.
At Hammond & Co, we’re proud to support construction businesses across the UK. We recognise the unique challenges of the industry and have shaped our services specifically around them. Whether you’re a sole contractor or a growing firm with a large workforce, we’re here to help you operate smoothly, stay compliant, and look ahead with clarity.
This article explores how we support construction companies at every level — from projects to payroll, and far beyond.
The Complex Financial Landscape of Construction
Construction is unlike any other industry. While many businesses have predictable revenue and expenses, construction companies must deal with:
- Multiple live projects with varying budgets, timelines, and risk.
- Payments that come in stages — often with retentions held back for months.
- Subcontractors who may work intermittently throughout the year.
- Employees needing regular wages long before client payments arrive.
- Constant invoices for materials, equipment, plant hire, fuel, and more.
On top of that, the industry faces some of the strictest compliance requirements in the UK. CIS, payroll, VAT, and corporation tax rules can be difficult to navigate — and HMRC penalties for errors are costly.
Without the right systems, it’s easy for directors to get buried in admin — chasing invoices, sorting CIS deductions, or worrying about tax deadlines instead of focusing on delivering projects and growing the business.
This is where specialist knowledge makes all the difference. At Hammond & Co, we bring order, structure, and clarity to your financial operations so you stay firmly in control.
Why Payroll and Subcontractor Management Matter So Much
Payroll in construction is far from straightforward. You may be dealing with:
- Employees
- Apprentices
- Subcontractors under CIS
- Temporary or fluctuating labour
Each involves different rules around PAYE, pensions, holiday pay, and HMRC reporting.
Mistakes can have immediate consequences — unhappy staff, disgruntled subcontractors, legal issues, or HMRC penalties. In an industry built on trust and timely payments, payroll errors can damage relationships and disrupt projects.
At Hammond & Co, we take the uncertainty out of payroll and subcontractor management. Using industry-leading tools such as BrightPay, we ensure every worker is paid accurately and on time.
We handle:
- HMRC verification of subcontractors
- Correct CIS deductions
- Clear payslips and CIS statements
- PAYE, pension, and statutory compliance
- RTI submissions
The result? Confident directors, satisfied workers, and a fully compliant business.
CIS Compliance Made Simple
The Construction Industry Scheme is one of the biggest administrative burdens for contractors. Verifying subcontractors, applying the right deductions, issuing statements, and filing monthly returns — it all takes time, and mistakes can be expensive.
Many firms still rely on spreadsheets or manual processes, which inevitably leads to missed deadlines or incorrect deductions.
Hammond & Co removes the stress by integrating CIS directly into your accounting and payroll systems, ensuring:
- Automatic verification with HMRC
- Accurate CIS deductions
- On-time monthly returns
- Instant, professional CIS statements
CIS doesn’t need to be complicated. With the right support, it becomes a seamless part of your financial workflow.
Technology That Transforms How You Work
Construction moves fast — and your finances need to keep pace. That’s why we use cloud-based tools such as:
- Xero
- Dext
- Hubdoc
- BrightPay
With these systems, you get:
- Instant upload of receipts and invoices
- Automatic bank reconciliation
- Integrated payroll and CIS
- Real-time dashboards showing cash flow, profit, and tax forecasts
No more waiting for year-end accounts to understand how your business is performing. Cloud accounting gives you everything you need to make informed decisions quickly — especially vital for tracking project profitability and managing cash flow.
At Hammond & Co, we don’t just set up the software. We train you and your team so that the technology becomes an asset, not a headache.
Strategic Tax Planning for Construction Firms
While payroll and CIS are daily challenges, the bigger picture is tax planning. Construction businesses can face substantial corporation tax bills — and without preparation, the impact can be significant.
Our Month-9 tax reviews give you time to prepare and strategise by:
- Forecasting your tax position
- Identifying reliefs and allowances
- Optimising director remuneration
- Helping you budget gradually
Construction firms also benefit from specific tax opportunities such as:
- Capital allowances on vehicles and machinery
- R&D tax relief for innovative processes
- Deductible pension contributions
- Strategic planning around loss relief
- Salary/dividend tax optimisation
We make tax planning proactive rather than reactive — giving you certainty in an industry known for variable income and unpredictable cash flow.
Case Study: Turning Chaos into Control
A fictional example for GDPR purposes:
“Redwood Construction Ltd” approached Hammond & Co struggling with late payroll, inconsistent CIS management, and frequent HMRC penalties.
Here’s how we helped:
- Implemented BrightPay for streamlined payroll & CIS
- Set them up with Xero and Dext for efficient bookkeeping
- Took over CIS submissions, eliminating penalties
- Completed a Month-9 review showing a £38,000 tax liability — allowing time to prepare
- Identified an R&D claim worth £10,500
Within months, their workload dropped significantly, subcontractor relationships improved, and financial confidence returned.
Why Construction Firms Choose Hammond & Co
Clients partner with us because:
- We understand construction — CIS, retentions, variations, subcontractor management, and industry-specific cash flow.
- We’re proactive — tax planning, forecasting, reminders, and regular check-ins.
- We embrace technology — streamlining your financial processes.
- We speak plainly — no jargon, no confusion.
- We’re trusted — construction directors nationwide rely on us to keep their businesses stable and compliant.
We don’t just keep you compliant — we become part of your team.
Checklist: Choosing the Right Accountant for Your Construction Firm
Your accountant should be able to say “yes” to all of the following:
- Do they understand CIS and construction payroll?
- Do they offer proactive tax planning (e.g., Month-9 reviews)?
- Are they experts in cloud accounting?
- Do they help with cash flow forecasting?
- Are they clear, communicative, and easy to work with?
- Do they have experience with construction sector clients?
If not, it may be time to make a change.
Conclusion & Call to Action
Construction directors already carry enormous responsibility — your accountant should lighten the load, not add to it.
At Hammond & Co, we take care of payroll, CIS, bookkeeping, compliance, and strategic tax planning so you can focus on delivering quality projects and growing your business.
If you're ready to work with accountants who genuinely understand the construction industry, we’re here to help.
Get in touch with Hammond & Co today and let’s build your financial future with strong foundations.