Accountants for Electricians

The money side of an electrical business

Domestic jobs are paid quickly; commercial and contract work is invoiced in stages, sometimes with retentions held back, and often with CIS tax deducted before you are paid. Materials are bought on account and recharged, sometimes with a mark-up and sometimes at cost. Without organised records it is hard to know which jobs actually made money, and the year-end return turns into a scramble for statements and receipts.

Hislop Business Solutions is run by Michelle Hislop, an AAT licensed accountant with more than 15 years in accountancy and over 8 years of hands-on payroll experience. You deal with Michelle directly, and you should never feel like you are bothering her with a question.

What we take care of

• Bookkeeping and software set up for job costing, so labour, materials and profit are visible per job.
• CIS statements gathered and the deductions reclaimed or offset at the year end.
• VAT returns, including the domestic reverse charge on work for other VAT-registered contractors.
• Self Assessment or limited company accounts and Corporation Tax.
• Payroll, pensions and holiday pay for apprentices and employees.
• Training if you would rather keep some of the bookkeeping in-house.

Points that matter for electricians

CIS applies more often than you might think

Electrical installation work carried out for a contractor counts as a construction operation, so many electricians are CIS subcontractors without realising it. Registering keeps the deduction at 20% rather than 30%, and keeping the statements means the tax is recovered. If you use subcontractors yourself, you become a contractor with monthly returns to file, which we handle.

VAT decisions

Registering for VAT is compulsory once your taxable turnover passes the registration threshold, but some electricians register earlier to reclaim VAT on vans and equipment. Once registered, contract work for other VAT-registered CIS businesses usually falls under the reverse charge. We advise on timing and keep the invoices right.

Equipment, vehicles and certification

Test instruments, tools, the van and its running costs, workwear, and the cost of scheme membership and periodic training are normally allowable, some outright and some through capital allowances. Records matter here: HMRC expects to see what was bought and why.

From one van to a team

An apprentice or a first employee brings payroll, pension auto-enrolment and employment paperwork. It is also when the sole trader versus limited company question usually comes up; our article on sole trader versus limited company is a good starting point, and we will run the numbers with you.

Getting started

The first step is a free, no-obligation conversation about your business. We will suggest the right mix of support and a clear monthly price, and if you decide to go ahead we take care of the handover from your previous accountant or your spreadsheets. Book your free consultation or call 07510 914616.