
Construction businesses often operate on tight budgets, and every pound counts. However, many miss out on claimable tax deductions that could save them thousands of pounds every year.
Taking full advantage of these deductions not only helps reduce your tax bill but also keeps your business more financially resilient.
Here’s a closer look at the key deductions you should be tracking to ensure you’re not leaving money on the table:
1️⃣ Tools and Equipment Purchases
Tools are the lifeblood of any construction business, and the good news is that you can claim back the cost of many purchases.
What’s covered? Power tools, hand tools, machinery, and even software used for design or project management.
Pro Tip: Don’t forget to include repairs or replacements of essential tools—they’re also deductible.
💡 Keep your receipts: A digital or paper record of every purchase ensures you can claim these expenses hassle-free.
2️⃣ Safety Gear (PPE)
Protecting your team on-site is not just good practice—it’s a legal requirement. HMRC allows you to claim back the cost of personal protective equipment (PPE).
What’s covered? Hard hats, steel-toe boots, gloves, goggles, high-visibility jackets, and any other gear needed for safety compliance.
Pro Tip: Even branded safety gear for your team can qualify as a business expense.
3️⃣ Training and Certifications
Keeping your team skilled and certified is essential for running a safe and efficient construction site.
What’s covered? Costs for training courses, certifications, and even health and safety seminars.
Pro Tip: If you’re introducing new software or equipment, any associated training costs can also be deducted.
Investing in training doesn’t just enhance your team’s skills—it reduces your tax bill too!
4️⃣ Vehicle Expenses
If you use vehicles for business purposes, you’re entitled to claim deductions for their operation and maintenance.
What’s covered? Fuel, maintenance, insurance, road tax, and even depreciation of vehicles.
Mileage Claims: If you use your personal vehicle for work, you can claim mileage at the HMRC-approved rate (currently 45p per mile for the first 10,000 miles and 25p thereafter).
Pro Tip: Keep a log of business-related journeys to avoid missing out on mileage claims.
5️⃣ Home Office Costs
Even if you don’t have a physical office, running your admin from home allows you to claim a portion of your household expenses.
What’s covered? A percentage of utility bills (electricity, heating, and water), internet costs, and office supplies.
Pro Tip: Use HMRC’s simplified flat rate for home office costs if it’s easier to calculate than apportioning exact expenses.
Why These Deductions Matter
Every pound you claim back in expenses reduces your taxable income, meaning you pay less tax overall. This could result in significant savings for your business, especially when margins are tight in industries like construction.
How to Maximize Your Deductions
1️⃣ Stay Organized: Keep digital or physical copies of all receipts, invoices, and mileage logs.
2️⃣ Track Everything: Use an app or spreadsheet to monitor your expenses throughout the year.
3️⃣ Work with a Professional: An accountant experienced in the construction industry can identify deductions you might not even know about.
Let’s Make Tax Time Easy!
💡 Want to make sure you’re claiming everything you’re entitled to? At Brian Pusser Accounting, I specialize in helping construction businesses like yours maximize their deductions and reduce their tax bills.
📩 Let’s chat! Message me today or book a consultation to get started. Together, we can make sure you’re not overpaying the taxman.