Set Up a Construction Business in the United Kingdom
A quick run-through from 3E Accounting on the essentials of how to set up a construction business in the UK.
The construction industry is a vital part of any nation’s investment-led economy and infrastructure. The pronounced and busy construction industry is a clear indicator of the economic stability of a country. Entrepreneurs in this industry not only turn over a healthy profit but also contribute positively to the community. Building hospitals, schools, highways and bridges, all contribute towards the growth of a society. To be a part of this robust industry, you need to know how to set up a construction business in the UK.
Building for a Nation
The UK’s construction industry is diverse, ranging from residential to commercial, recreational, and social infrastructures. Sectors include, amongst others:
- Infrastructure and contracting
- Building and refurbishment
- Manufacturing and services
- Mining and quarrying
- Maintenance and disposal
A construction business can be focused on providing services to the industry as well as going all out to build skyscrapers. Starting your construction venture should begin with a business plan that lays out the financial framework, strategy, and operations. Work out how much share capital you may need, type of equipment, amount of labour, etc. This will also enable you to decide whether you want to operate as a sole trader, partnership, or limited company. Choosing the right business vehicle from the very start is a good strategy and the best overall use of resources.
Depending on the type of entity, you will need to choose a company name and register with Companies House. You will need to submit articles as well as a memorandum of association and appoint directors and shareholders. Firms such as 3E Accounting provide company formation packages that can get these done for you. Services also include registered business addresses that afford privacy for directors, etc.
Other considerations for your business include opening a bank account, getting a logo, website and domain name. You will also need to register for taxes with HMRC, the UK’s tax authority. Depending on criteria such as annual turnover, you will need to pay corporation tax and value-added tax (VAT). Annual filings must be done within your business’ financial year-end.
Depending on whether you are a contractor or sub-contractor, registration with HMRC should also include CIS. This is the UK’s Construction Industry Scheme which covers tax deduction for some types of construction work. The Government website on CIS provides more information about who needs to register, types of construction work, and how the deduction is made.
The UK’s construction industry is very tightly regulated, and compliance should be at the top of your to-do list. This includes the health and safety of your labour force, operational compliance, zoning laws, etc. You will also need to be certified to carry out certain types of work, which can include international ISO certification. Numerous associations, boards and authorities oversee the industry and staying compliant may best be achieved via professional help.
The experts at 3E Accounting can offer further guidance on how to set up a construction business in the UK. We also provide customisable business solutions for all your business requirements. Impeccable professionalism and decades of industry expertise will ensure that you get the best possible outcomes. Contact 3E Accounting today to explore business solutions created just for you.