Tax Deductions for Builders

Start keeping records now, and make sure you claim every allowable expense

Top Tax Deductions for Builders

If you're in construction, you're probably leaving money on the table. From tools to transport to site-related costs, here are the most overlooked tax deductions UK builders can claim to reduce their bill — legally.

Builder reviewing expenses and allowable deductions

1. Tools, Equipment & Protective Gear

Power tools, drills, ladders, helmets, gloves — if it’s essential for the job, it’s likely deductible. Don’t forget wear and tear or replacements, especially if you’re buying frequently. Keep those receipts.

2. Vehicle Costs & Mileage

Whether you own a van or use your personal car, you may be able to deduct mileage, insurance, MOT, repairs and fuel — especially if the vehicle is used primarily for your construction business. Mileage logs matter.

3. Materials & Consumables

Timber, cement, sealants, screws, sandpaper, site tape, gloves — the list of consumables builders go through is long. As long as they’re job-related, they count. Even materials used on your own house may be claimable if it’s a show/demo build.

4. Mobile, Software & Admin Tools

Your work phone bill, accounting software, project quoting apps, email tools, and cloud storage (like Google Drive, OneDrive or Dropbox) are all tax-deductible if used for business. If in doubt, claim a portion that reflects usage.

5. Subcontractor & CIS-Related Expenses

If you hire subcontractors, payments made under the Construction Industry Scheme (CIS) count as allowable expenses. So do payroll systems, verification tools, or outsourced help with filings. Keep everything recorded and reconciled.

Builders work hard. So should your tax return. Start keeping records now, and make sure you claim every allowable expense when the time comes. It’s your money — don’t leave it behind.

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FAQs on Tax Deductions for UK Builders

What can builders claim as tax deductions?

Builders in the UK can typically claim tools, safety gear, van costs, site materials, software, subcontractor payments, and admin tools — as long as they’re used for business purposes. Good recordkeeping is key.

Can I claim van fuel and maintenance?

Yes. If your van is used for construction work, you can claim mileage or actual expenses like fuel, insurance, MOT, and repairs. Just keep a detailed log to support your claim.

Do CIS subcontractor payments reduce my tax?

Absolutely. Subcontractor costs under the Construction Industry Scheme (CIS) are deductible. So are CIS verification software, outsourced filing support, and payroll tools used to manage them.

Can I claim software like QuickBooks or Xero?

Yes — cloud accounting software is a legitimate business expense. If you use it to track jobs, invoices, or tax returns, the monthly or yearly fees are fully deductible.

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