Specialist Accountants for Tradespeople in Kent: How King and Taylor Can Help

Tradespeople such as builders, plumbers, electricians, and decorators are the backbone of Kent’s local economy. However, managing the financial side of your trade can often feel like a full-time job in itself. From navigating the complexities of the Construction Industry Scheme (CIS) to tracking expenses and staying compliant with tax regulations, the challenges are endless.

At King and Taylor, we specialize in providing tailored accounting services for tradespeople across Kent. Our team understands the unique demands of your trade and is here to take the financial burden off your shoulders, allowing you to focus on what you do best—running your business.

Specialist Accountants for Tradespeople in Kent: How King and Taylor Can Help

1. CIS Compliance Made Easy

If you’re a contractor or subcontractor working in construction, you’re likely familiar with the Construction Industry Scheme (CIS). While the scheme is essential for ensuring proper tax deductions, its rules can be confusing and time-consuming to navigate.

At King and Taylor, we simplify CIS compliance by:

Filing CIS Returns: Ensuring your monthly CIS submissions are accurate and on time.
Claiming CIS Tax Deductions: Helping subcontractors reclaim overpaid tax at the end of the year.
Avoiding Penalties: Keeping you compliant with HMRC to avoid costly fines.

We take the hassle out of CIS so you can focus on growing your trade business.

2. Maximising Expense Claims

As a tradesperson, you often invest heavily in your tools, equipment, and travel. Knowing what you can claim as expenses is key to minimising your tax liability.

Some common expenses we help you claim include:

Tools and Equipment: From power drills to safety gear, we ensure all eligible costs are deducted.
Vehicle Costs and Mileage: Whether you use a van or a car for work, we help track mileage and other vehicle expenses to maximize deductions.
Workwear and PPE: Claim the cost of protective clothing and uniforms essential for your job.
Training and Certifications: If you attend courses to enhance your skills, these may be deductible too.

We ensure no expense is overlooked, helping you keep more of your hard-earned money.

How tradesment can deduct expenses

1. Tools and Equipment

As a tradesperson, the tools you use for work are essential to your business. The good news is that these costs are deductible. You can claim the full cost of purchasing tools and equipment used directly in your trade. This includes:

Power tools (e.g., drills, saws, and sanders).
Hand tools (e.g., hammers, screwdrivers, wrenches).
Specialized equipment (e.g., scaffolding, ladders, welding machines).

Example:

If you purchase a new set of power tools for £600, and these are used solely for your business, you can claim the full £600 as a business expense on your tax return.

2. Vehicle Costs and Mileage

If you use a vehicle for business purposes (e.g., transporting tools, materials, or going to job sites), you can claim a portion of the vehicle’s running costs as business expenses. This includes:

Fuel costs for business-related trips.
Insurance and tax on a vehicle used for business purposes.
Repairs and maintenance costs.
Vehicle depreciation (if the vehicle is used exclusively for business).

If your vehicle is used for both personal and business purposes, you can claim the proportion of costs related to business use.

Example:

You drive 10,000 miles a year, and 6,000 of those miles are for business purposes. If your total fuel cost for the year is £1,200, you could claim 60% of the fuel cost, i.e., £720, as a business expense.

3. Workwear and Protective Equipment

Any clothing or protective gear you wear while working can be claimed as an expense, provided it’s specific to the job and required for safety. This includes:

Safety boots or shoes.
Hi-vis vests or jackets.
Work gloves and protective gear (e.g., helmets, knee pads, goggles).
Uniforms that are clearly job-specific and not suitable for everyday wear.

Example:

If you purchase a pair of safety boots for £120, you can claim this as a business expense if the boots are specifically for work and are not worn for personal use.

4. Business Insurance

Insurance is vital for any tradesperson, and premiums for the following types of business-related insurance are fully deductible:

Public liability insurance (protects against claims for injury or damage).
Employer’s liability insurance (if you employ others).
Tools and equipment insurance (covers damage or theft of business tools).

Example:

If you pay £400 annually for public liability insurance and use the insurance solely for business purposes, you can claim the full £400 as a deductible expense.

5. Training and Qualifications

Any training or courses you take that help improve your skills or certifications required for your trade are deductible. This includes:

CPD courses (Continuing Professional Development) related to your trade.
Health and safety training (required for certain trades like construction or plumbing).
Specialized certifications (such as gas safety for plumbers or electrical qualifications).

Example:

If you attend a training course costing £500 to become certified in a new skill relevant to your trade, you can claim the full £500 as a business expense.

6. Office or Work-Related Home Expenses

If you run your trade business from home or use a home office for administrative tasks, you can claim a portion of your home-related expenses. This includes:

Part of your rent or mortgage (proportional to the space used for business).
Utility bills (electricity, heating, internet) based on the percentage of your home used for business.
Council tax and property maintenance costs (calculated based on business use of your home).

Example:

If you use 10% of your home for business purposes and your annual utility bills total £1,500, you can claim 10% of the costs, i.e., £150, as a business expense.

7. Subcontractor Payments

If you hire subcontractors to assist you on jobs, the cost of hiring them is a legitimate business expense. This can include:

Wages or fees paid to subcontractors for their work.
Payment for materials provided by subcontractors if they are charged separately.

Example:

If you hire a subcontractor to help on a large project and pay them £1,000 for their work, you can deduct that £1,000 from your taxable income as an expense.

8. Business Phone and Internet Costs

You can claim a portion of your phone and internet bills if they are used for business purposes. This applies if you use your phone or internet for:

Communicating with clients and suppliers.
Managing business accounts or schedules.
Accessing industry-related resources.

Example:

If your monthly phone bill is £40 and you use it 60% of the time for business purposes, you can claim 60% of £40, which is £24, as a business expense.

3. Managing Irregular Income

In trades, income can often be unpredictable, with busy periods followed by quieter times. This fluctuation can make financial planning tricky, especially when it comes to budgeting for taxes or big purchases.

At King and Taylor, we offer:

Cash Flow Management: Helping you plan ahead to manage seasonal variations in income.
Savings Strategies: Assisting you in setting aside funds for slow periods or unexpected expenses.
Tax Planning: Creating strategies to reduce your tax burden while keeping your finances in check.

Our goal is to help you maintain financial stability, no matter how irregular your income might be.

4. VAT for Tradespeople

If your annual turnover exceeds £85,000, you’ll need to register for VAT. While VAT registration can bring advantages, such as reclaiming VAT on business expenses, it also comes with additional responsibilities. Read more on the Government website.

We can assist with:

VAT Registration: Ensuring you meet HMRC’s requirements.
Filing VAT Returns: Accurately calculating and submitting your VAT returns on time.
Choosing the Right VAT Scheme: Helping you decide whether the Flat Rate Scheme, Cash Accounting, or Standard VAT Scheme is the best fit for your business.

With our support, VAT doesn’t have to be a headache.

5. Simplifying Tax Returns

Whether you’re filing a self-assessment tax return or running a limited company, tax season can feel daunting. Mistakes can lead to overpayments or penalties, so it’s crucial to get it right the first time.

Here’s how we can help:

Self-Assessment Made Simple: We handle all the paperwork and calculations to ensure your return is accurate and submitted on time.
Avoiding Overpayment: By carefully reviewing your income and expenses, we make sure you don’t pay a penny more than you owe.
Deadline Reminders: We’ll keep you informed of key dates to avoid any last-minute panic.

At King and Taylor, we’re committed to making tax time stress-free.

Why Choose King and Taylor?

As trusted accountants for tradespeople in Kent, we bring:

Local Expertise: We understand the unique challenges faced by tradespeople in the Kent area.
Tailored Services: From CIS to VAT, our services are customized to fit the specific needs of your trade.
Transparent Pricing: No hidden fees—just straightforward, affordable accounting solutions.

Get in Touch Today

If you’re a builder, plumber, electrician, or any other tradesperson in Kent, King and Taylor is here to support your business. Let us handle your finances so you can focus on what you do best.

Specialist Accountants for Tradespeople in Kent: How King and Taylor Can Help