Accountant for Property Developers
ECCO Accountants is a specialist accountant for UK property developers. We plan the VAT on your build before work starts, check your builders charge the right rate, set up the right company for each project, and plan your exit, whether you sell, refinance and keep, or both. Chartered certified (FCCA), fixed monthly fee, working UK-wide.
Chaya Orzech FCCA · Xero accountants · Based in Manchester, working UK-wide · Rated 5.0 on Google
Does this sound familiar?
- You’re not sure what VAT rate your builder should be charging you.
- You’ve paid VAT on build costs that you might have avoided or claimed back.
- There are several partners or companies on one project, and nobody’s sure who owns what.
- You haven’t decided whether to sell the units or keep them, or what each option costs in tax.
- The lender or your investors want up-to-date figures, fast.
- The bookkeeping falls behind while you’re busy on site.
- A tax bill lands at the end of the project that nobody warned you about.
- Every deadline turns into a last-minute rush.
- Your accountant is slow to reply and doesn’t really understand property.
Property can be stressful enough. You don’t need the finance and tax stress on top. We take that away so you can focus on the build.
Why does VAT matter so much on a development?
VAT is where developers most often lose money. The right rate depends on what you’re building: new homes, a commercial building turned into flats, a house split into flats or an HMO, or an empty home brought back into use. Get it right at the start and your builders charge 0% or 5% instead of 20%, and you may be able to claim back the VAT you do pay. Get it wrong and it’s often too late to fix.
What VAT rate applies to my development?
| Project | Builder’s VAT on the work | VAT when you sell | Can you claim back VAT on costs? |
|---|---|---|---|
| Building new homes | 0% | Usually 0% on the first sale or long lease | Usually yes |
| Converting a commercial building into homes | 5% | Usually 0% on the first sale or long lease | Usually yes |
| Changing the number of homes (a house into flats, or into an HMO) | 5% | Usually exempt | Usually no |
| Renovating a home that’s been empty for 2 years or more | 5% | Usually exempt | Usually no |
| Commercial building or refurbishment | 20% | 20% on new commercial buildings; older ones exempt unless you opt to tax | Yes, if you charge VAT on the sale or rent |
These are the general rules, and each one has conditions. We check your project against them before work starts.
Mixed projects in one company. When one company has some projects where VAT can be claimed back and others where it can’t, working out how much you can reclaim gets complicated. We take care to get the split right, so your VAT records stand up if HMRC ever asks questions.
What do we handle for property developers?
VAT planned before you start
We work out the right VAT rate for your project and whether you should register, before the first invoice arrives.
Builder and design-and-build checks
We check your builders and any design-and-build contractor are charging the right rate, so you don’t pay 20% where 0% or 5% applies.
Claiming VAT back
VAT registration and returns, with every bit of VAT you’re allowed to reclaim claimed back.
One company per project
A separate company for each development where it makes sense, and clear numbers when you have partners or joint venture investors.
Exit planning
Sell, refinance and keep, or a mix. We work out the tax on each option before you decide.
CIS for subcontractors
If you pay subcontractors, you may need to register for the Construction Industry Scheme. We handle the monthly returns.
Figures for lenders and investors
Accounts and cost reports for your lender, broker or investors, when they ask.
Costs against budget
Our finance back office keeps every project’s costs up to date, so you can check spend against budget as the build goes on.
No paperwork for you
Our done-for-you Virtual Finance Office handles the bills, receipts and records. Snap receipts on our app, forward bills to an email address we give you, or send them on WhatsApp, and we do the rest.
Answers all year
Fixed fees mean you can call, email or WhatsApp us whenever a question comes up, with no charge for it.
What are my options at the end of a development?
| Exit | How it’s taxed | Watch out for |
|---|---|---|
| Sell all the units | Trading profit: corporation tax at 19% to 25% in a company, or income tax if you develop in your own name | VAT on the sale and the timing of completions |
| Refinance and keep them to rent | The units move from stock you were selling to investments you’re keeping | That switch can create a tax bill as if you’d sold at market value, so plan it before completion |
| Sell some, keep some | A mix of both | Splitting the build costs fairly between the units you sell and the ones you keep |
Who do we work with?
Small and mid-sized developers: new builds, offices and shops converted into flats, houses split into flats, HMO conversions, serviced accommodation and refurbishments. Some clients are on their first project; others run several at once through separate companies, often with partners or joint venture investors.
How does it work?
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Book a call
A free 20-minute call about your project, your partners and your plans.
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Get your plan
Before work starts, we set out the VAT, the structure and the tax on each exit.
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Build with us
We run the finance side month by month, and you bring us each new project before you commit.
What do our clients say?
Rated 5.0 on Google. Read all our Google reviews · More testimonials on LinkedIn
Frequently asked questions
What VAT rate should my builder charge?
It depends on the project. Building new homes is usually 0%. Converting a commercial building into homes, splitting a house into flats or an HMO, or renovating a home that’s been empty for two years or more is usually 5%. Most other building work is 20%. Each rate has conditions, so check before work starts.
Can a property developer claim back VAT?
Often, yes, if you build new homes or convert a commercial building into homes and sell them, because those first sales are usually zero-rated. If the sale is exempt, for example after splitting an existing house into flats, you usually can’t.
Do property developers pay capital gains tax?
Usually not. If you build to sell, the profit is trading profit. In a company that means corporation tax at 19% to 25%; in your own name it’s income tax.
Should I set up a separate company for each development?
Often, yes. A separate company keeps each project’s money, risk and lender apart, and makes arrangements with partners cleaner. It adds some running costs, so we look at it project by project.
What if I decide to keep the units instead of selling?
That can be a good move, but switching from selling to keeping can trigger tax as if you’d sold at market value. Decide before completion if you can, and talk to us first.
Do you work with developers outside Manchester?
Yes. We work with developers wherever they live, in the UK or abroad, as long as the property is in the UK. Everything runs online.
Tax rates and thresholds on this page are correct as at October 2026.
Planning your next project?
Book a free 20-minute call before work starts, and we’ll look at the VAT, the structure and your exit with you.