Firms checked on 19 October 2026 charged £20 to £35 a month extra for VAT returns, mostly plus VAT. The reverse charge, CIS statements and monthly returns can push a builder's bill higher.
VAT only applies once you are registered: you must register when your taxable turnover for the last 12 months goes over £90,000, or you expect it to go over £90,000 in the next 30 days alone. After that, every return goes through Making Tax Digital (MTD) software unless HMRC exempts you. The prices below come from firms' own pages and fee guides. They are the going rate, not a quote.
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What firms charge
| Firm | Price as published | VAT as shown | Notes for builders |
|---|---|---|---|
| Gorilla Accounting, MTD Complete | Starting from £79 + VAT, sold as a fixed monthly fee | Plus VAT | Includes preparing and submitting VAT returns and support with CIS returns for up to 2 subcontractors; lists construction workers among those it suits |
| The Accountancy Partnership | VAT Returns £35.00 a month on top of a sole trader package, £44.50 a month for turnover of £90,001 to £200,000 | "All prices shown are per month and exclude VAT" | Bookkeeping is extra, £20.00 a month for up to 40 transactions |
| GoForma | VAT Returns £24 a month on top of a package | VAT not stated | Covers quarterly VAT returns, MTD for VAT, registration and HMRC liaison |
| Mazuma | VAT returns with MTD filings, £20 added to a sole trader package from £38 a month | Package totals shown "Excluding VAT, charged monthly" | The Basic package covers 20 transactions a month |
| Accotax fee guide, 11 August 2026 | £40 to £100 per quarterly return | VAT not stated | Says VAT registration adds admin, so it adds cost |
| Protax Consultants, London, 4 June 2026 | £150 to £350 a quarter when the firm prepares the return from your records; £375 to £650 a quarter for complex returns | VAT not stated | Does not define complex |
If you would rather file it yourself, Xero Ignite lists "Submit VAT returns to HMRC" at £1.80 per month excl. VAT for the first 6 months, then £18 per month. The sole trader version of this page has more software prices and yearly sums.
Why a builder's return can take more work
| What you have | Why it adds work |
|---|---|
| Reverse charge sales | It applies only to standard and reduced rate services reported within CIS, where your customer is VAT and CIS registered, and not to an employment business supplying workers. Those invoices carry no VAT for you to collect. |
| A mix of customers | A private homeowner is not VAT registered, so you charge VAT normally. You also charge it normally to a customer who tells you in writing that they are an end user or intermediary supplier. |
| CIS statements | A contractor takes 20% if you are registered and verified, 30% if not, or nothing if you have gross payment status, but not from the VAT on your invoice. |
| Materials receipts | CIS is not taken from materials you paid for directly. A contractor may ask for receipts, and estimates the cost if you have none. In our reading, the same receipts back up the VAT you reclaim, so losing them can cost you twice. |
| Cash Accounting | GOV.UK says you cannot use the Cash Accounting Scheme for reverse charge supplies, though you can stay on it for the rest. |
Monthly returns multiply per-return fees
Under the reverse charge you may be owed money by HMRC on each return, because reverse charge customers no longer pay you VAT. GOV.UK says you can apply to move to monthly returns through your online VAT account. Accotax quotes £40 to £100 per quarterly return, so 4 returns come to £160 to £400 a year. If a firm charged the same for each monthly return, 12 would come to £480 to £1,200, VAT not stated. A monthly package fee may cover only quarterly returns, as GoForma's does, so ask whether moving to monthly returns changes the price.
The Flat Rate Scheme and the reverse charge
On the Flat Rate Scheme you pay HMRC a fixed share of your VAT-inclusive turnover. GOV.UK's rates include 14.5% for labour-only building work, meaning materials under 10% of turnover, 9.5% for general building, and 16.5% for a limited cost business. HMRC's technical guide says reverse charge sales are left out of the flat rate calculation, and that you should consider whether the scheme is still useful, because on it you cannot recover VAT on materials and overheads. Our Flat Rate Scheme guide covers this.
What this means for you
In our reading, a builder who works mainly for homeowners and keeps receipts tidy is more likely to be quoted near the lower end above. Reverse charge work, several contractors or monthly returns point to the upper end. Lateness costs too: each late return earns a penalty point (not your first return after registering or your last after cancelling), and at 4 points a quarterly filer pays £200. Monthly filers reach the threshold at 5, and moving from quarterly to monthly returns adds 1 point if you already have any. HMRC makes no change if you have none.
Our Trades Tax plan is £35 a month or £350 a year including VAT. Your bank feed becomes your MTD quarterly updates and your CIS deductions are tracked all year. Coming later. Not available yet: starts once our HMRC registrations are complete. Once our registrations are complete, we'll send your quarterly updates and tax return to HMRC for you, after you confirm the figures. Our VAT returns add-on is £10 a month including VAT, on the monthly Trades Tax plan only. We don't do CIS contractor returns, so if you pay subcontractors yourself, a firm such as Gorilla Accounting, whose page lists support with CIS returns, is the better fit.
Steps to price your VAT return
- Count how many invoices last quarter were reverse charge, and how many went to homeowners or end users.
- Keep every written end user notice and every materials receipt with the job.
- Decide whether quarterly or monthly returns suit your cash flow.
- Ask at least two firms for a yearly price in pounds, including VAT, for that number of returns.
- Check whether the price covers CIS contractor returns if you pay subcontractors.
- Use the free MTD check to see when MTD for Income Tax starts for you, then request your quotes.
Our reverse charge guide explains invoices, and the trades section has more for builders.
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Questions people ask
Do I charge VAT to a homeowner if I am VAT registered?
Yes, at the normal rate for the job, with no reverse charge. That is usually 20%, but building a new home can be zero-rated and some conversions and renovations are 5% (VAT Notice 708). GOV.UK's technical guide says the reverse charge does not apply to a private domestic customer, because they are not VAT registered. The builder working for that homeowner is not an end user, so their own subcontractors use the reverse charge where its other conditions are met: standard or reduced rate work, both registered for VAT, the builder registered for CIS and the payment reported under CIS, and no end user or intermediary notice.
When does the reverse charge apply to my invoices?
When you and your customer are both VAT registered, your customer is registered for CIS, the payment is reported within CIS, the work is standard or reduced rated, and the customer has not told you in writing that they are an end user or intermediary supplier. It never applies when an employment business supplies staff or workers.
Will the reverse charge mean more VAT returns?
It can. Customers on reverse charge invoices do not pay you VAT, so you may be owed money by HMRC on each return. GOV.UK says you can apply to move to monthly returns to get repayments sooner, which means 12 returns a year instead of 4.
Does CIS come off the VAT and materials on my invoice?
No. GOV.UK says contractors will not take CIS deductions from VAT or from materials you paid for directly. They may ask for receipts, and if you have none they will estimate the cost of the materials.
Should a builder on the reverse charge use the Flat Rate Scheme?
Check first. Reverse charge sales are left out of the flat rate calculation, and HMRC says you should consider whether the scheme is still useful, because on it you cannot recover VAT on materials and overheads.
Sources
- Buildings and construction (VAT Notice 708) (GOV.UK, checked 19 October 2026)
- Check when you must use the VAT domestic reverse charge for building and construction services (GOV.UK, checked 19 October 2026)
- How to use the VAT domestic reverse charge if you supply building and construction services (GOV.UK, checked 19 October 2026)
- VAT domestic reverse charge technical guide (GOV.UK, checked 19 October 2026)
- What you must do as a CIS subcontractor: Get paid (GOV.UK, checked 19 October 2026)
- VAT Flat Rate Scheme: How much you pay (GOV.UK, checked 19 October 2026)
- Sending a VAT Return (GOV.UK, checked 19 October 2026)
- Register for VAT (GOV.UK, checked 19 October 2026)
- Penalty points and penalties if you submit your VAT Return late (GOV.UK, checked 19 October 2026)
- How late payment penalties work if you pay VAT late (GOV.UK, checked 19 October 2026)
- Gorilla Accounting: MTD packages (checked 19 October 2026)
- The Accountancy Partnership: Pricing (checked 19 October 2026)
- GoForma: Packages (checked 19 October 2026)
- Mazuma: Pricing (checked 19 October 2026)
- Accotax: How much does an accountant cost for a small business (11 August 2026, checked 19 October 2026)
- Protax Consultants: How much does an accountant cost in London 2026? (4 June 2026, checked 19 October 2026)
- Xero: Pricing plans (checked 19 October 2026)
This is general information to help you understand the rules. It isn't tailored to your circumstances, so check your own position before acting on it.
Righto Tax is a trading name of NJG Consultancy Ltd, registered in England and Wales, company number 16095900. Registered office: Jubilee House, East Beach, Lytham St Annes, FY8 5FT.
What happens next
- Use the free Making Tax Digital checker to see your own start date and deadlines.
- See what Righto Tax for Trades does for you, and join the waitlist.
- Questions about this page? Email hello@rightotax.co.uk.