We understand the engineering sector
Running an engineering business is complex. You’re managing stock, are often dealing with long lead times on projects, investing in expensive plant and machinery, and trying to stay competitive in a challenging market.
Add in complex tax rules, capital allowances, VAT on goods and services, and the potential for R&D tax credits, and you need an accountant who understands how your industry works.
Based in Grimsby on the heavily industrialised Humber Bank, we have engineering and manufacturing companies on our doorstep. This means we have extensive experience working with businesses just like yours, from precision engineering and fabrication to food processing and industrial manufacturing.
We understand the sector’s challenges, and we’ll make sure your finances are in order so you can focus on running your business.
What we do for engineering businesses
We provide a comprehensive accounting service tailored to the engineering sector and will handle the financial side of the business, so you can focus on production and growth.
Some of the areas we can support your engineering business include;
- Project-based accounting - track project costs, revenue, and profitability, manage work in progress and retention payments throughout the contract lifecycle.
- Accounts and tax returns - year-end accounts and tax returns for sole traders, partnerships, and limited companies.
- Bookkeeping and management accounts - we keep your books up to date and provide regular management accounts.
- Research & Development (R&D) tax credits - secure substantial tax credits or cash rebates for businesses developing new products or improving processes.
- VAT compliance - handle complex VAT scenarios, including reverse charge VAT, imports and exports, and zero-rated supplies.
- CIS compliance - for construction-related engineering work, we manage CIS liabilities and requirements.
- Capital allowances - claim maximum tax relief on plant, machinery, and equipment, timing expenditure to optimise your tax position.
- Stock management and valuation - implement proper stock control systems and ensure stock is valued correctly at year-end.
- Growth and investment - support expansion and growth plans and funding/investment applications.
IR35 for engineering contractors
If you’re an engineering contractor working through your own limited company, IR35 rules might affect you.
These determine whether you should be taxed as an employee or genuinely self-employed.
We’ll review your working arrangements, advise on your IR35 status, and help you structure contracts appropriately. The rules can be complex, particularly with off-payroll working regulations for larger clients, but we’ll make sure you understand your position and stay compliant.
CIS and engineering projects
Many engineering businesses don’t realise they fall under the Construction Industry Scheme.
If your work involves construction operations like fabrication and installation for construction projects, site preparation, structural steelwork, mechanical and electrical installations, or commissioning plant and equipment on construction sites, CIS applies to you.
Pure manufacturing, where you supply components to customers, isn’t usually caught, but if you’re doing both fabrication and installation, you’ll likely need to comply.
Getting CIS wrong can result in penalties and unexpected tax bills. We’ll review your operations, advise whether CIS applies, and handle all the compliance for you if it does.
Why engineering businesses work
Our team have worked with engineering businesses for years, so we understand the specific challenges you face, from managing stock and work in progress to claiming R&D tax credits. We’ll take the accounting burden off your hands so you can focus on production, winning contracts, and growing your business.
Many engineering companies miss out on tax reliefs they’re entitled to, particularly R&D tax credits and capital allowances. We’ll make sure you’re claiming everything available and structuring your finances as tax-efficiently as possible.
If you’re in engineering and need an accountant who understands your business, we’d like to help.
We'd love to talk
If you are frustrated by your current accountant, or are looking to appoint an accountant or bookkeeper for the first time, the first step is an informal chat.
We get to find out a bit about your business and what you need, and you get a feel if we are the right fit for you. It’s all about chemistry.
Give us a call on 01472 287387 or complete the form and we will give you a call back.
"*" indicates required fields