Accountancy for property developers
We understand property development
Property development involves complex financial challenges. You’re managing multiple projects, dealing with significant upfront costs, navigating complex VAT rules, and trying to structure your business in the most tax-efficient way.
Add in CIS compliance, Stamp Duty planning, capital gains considerations, and the choice between trading or investing status, and you need an accountant who understands the property development sector inside out.
We work with property developers across Lincolnshire and the UK, from individual developers doing one or two projects a year through to larger developers with multiple sites and developments running simultaneously. We understand the sector’s challenges, and we’ll make sure your finances are structured properly so you can focus on finding and delivering profitable projects.
What we do for property developers
We provide comprehensive accounting and tax services tailored to property development.
Our specialist services include;
- Development appraisals - assess the financial viability of potential projects, reviewing purchase costs, build costs, funding requirements, and projected returns.
- VAT planning and compliance - navigate complex VAT rules for property development, including zero-rating for new builds, reduced rates for conversions, and DIY housebuilder schemes.
- CIS compliance - property developers fall under the Construction Industry Scheme (CIS).
- Stamp Duty Land Tax (SDLT) planning - advise on SDLT reliefs and structuring acquisitions to minimise stamp duty.
- Capital gains vs trading income - advise on whether your development activity is trading income or capital gains, and structure appropriately.
- Cash flow forecasting - property development is capital-intensive with long project timelines, so we forecast your cash flow to ensure you have the right funding in place.
- Finance and funding support - We prepare financial information for lenders, assist with funding applications, and present your finances professionally to secure development finance.
- Company structure and tax efficiency - advise on the most tax-efficient structure for your developments; sole trader, limited company, SPV structures, or a combination.
- Capital allowances - identify and claim capital allowances on commercial developments and residential conversions.
- Exit planning - advise on the most tax-efficient exit strategy.
Trading vs investment status
One of the biggest tax questions for property developers is whether your activity counts as property trading (buying, developing, and selling) or property investment (buying, developing, and holding for rental income).
This matters because trading profits are taxed as income (up to 45% plus National Insurance), while investment gains are taxed as capital gains (up to 28% on residential property with no NI). HMRC looks at various factors, including your intentions when purchasing, the length of time you hold properties, and the frequency of transactions.
We’ll advise on your status, help you structure your business appropriately, and ensure you’re paying the right amount of tax on your development profits.
VAT and property development
VAT on property development is complex, and getting it wrong can be expensive. The VAT treatment depends on what you’re building or converting, and there are significant opportunities to reduce VAT costs if you structure things correctly.
We will help you apply the correct VAT structure to your project;
• Zero-rated
• Reduced rate (5%)
• Standard rate (20%)
• DIY housebuilder scheme
Getting VAT wrong on a £500,000 development could cost you £100,000 in irrecoverable VAT. We’ll make sure your developments are VAT-efficient from the planning stage.
Why property developers work with us
We’ve worked with property developers for years, from single-site operators to those managing multiple developments simultaneously. We understand the specific challenges you face and our aim is to take the accounting and tax burden off your hands so you can focus on finding sites, managing builds, and delivering projects.
Property developers often overpay tax by not structuring correctly or missing reliefs like SDLT Multiple Dwellings Relief, capital allowances, or VAT planning opportunities. We’ll make sure you’re claiming everything available and your developments are structured as tax-efficiently as possible from the start.
We’ll work with you on each development, providing project-specific advice, cash flow forecasting, and strategic planning throughout the development cycle.
Whether you’re doing your first development or you’re an experienced developer looking for better accounting support, we can tailor our service to what you need.
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.
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