Engineering & Manufacturing Industry Accounting & Tax Services in the UK

Engineering and manufacturing companies operate in one of the most demanding business environments. From managing large-scale production costs and complex supply chains to maintaining compliance with safety standards, import/export rules, environmental regulations and labour laws — financial management plays a crucial role in long-term success.

This industry requires far more than standard bookkeeping.
It demands:

• accurate cost accounting
• project-based financial tracking
• machinery depreciation planning
• R&D tax assessment
• large-scale payroll management
• VAT knowledge for materials, imports & exports
• strict compliance for audits and inspections
• forecasting for long production cycles
• monitoring of work-in-progress (WIP)
• capital investment analysis
• stock control for raw materials
• multi-department budgeting

Audit Consulting Group understands the complexity of the engineering & manufacturing world — from factory floors to design offices, robotics labs, CNC machining centres, automotive workshops, material testing facilities and large industrial plants.

Our mission is simple:
Provide engineering and manufacturing businesses with financial clarity, compliance and strategic tax optimisation.

Who We Support in the Engineering & Manufacturing Sector

We work with a wide range of businesses, including:

• Product manufacturers
• Fabrication & welding companies
• Mechanical & electrical engineering firms
• Precision engineering (CNC, milling, machining)
• Automotive suppliers
• Aerospace manufacturers
• Robotics & automation developers
• Industrial design firms
• Material processing facilities
• Food & beverage manufacturing plants
• Electronics & component manufacturers
• Chemical & plastics production
• EPC engineering companies
• Heavy equipment manufacturers
• 3D printing and prototyping labs
• Tooling and mould-making companies
• Renewable energy equipment manufacturers

Each engineering discipline has its own financial challenges — we provide tailored accounting aligned with sector-specific regulations.

Why Engineering & Manufacturing Companies Need Specialist Accountants

1. Complex Inventory & Production Costs

Manufacturers deal with:

• raw materials
• labour
• machine hours
• energy usage
• scrap and waste
• production overheads
• WIP tracking
• multi-stage production cycles

Accurate cost accounting is essential.

2. Capital-Intensive Operations

Engineering and manufacturing involve:

• large machinery investments
• tooling costs
• maintenance expenses
• depreciation planning
• asset financing

Tax strategy must maximise allowances and deductions.

3. R&D Tax Relief

A significant portion of engineering work qualifies for R&D Tax Relief, including:

• prototyping
• testing
• new product development
• process optimisation
• robotics programming
• automation improvements

Many companies lose thousands simply because they don’t claim what they’re entitled to.

4. International Supply Chains

Most engineering companies import/export:

• materials
• components
• equipment
• finished goods

This results in complex VAT and EORI requirements.

5. Labour-Heavy Operations

You may employ:

• engineers
• machinists
• welders
• technicians
• assemblers
• quality inspectors
• project managers
• designers
• contractors

Payroll must handle overtime, shifts, contractor hours and more.

6. Compliance Requirements

Manufacturers face regulations such as:

• ISO
• HSE
• environmental compliance
• quality standards
• audit readiness

Financial documentation must be precise.

Audit Consulting Group understands all these factors and provides industry-aligned accounting and tax services.

Full Accounting & Bookkeeping Services for Engineering & Manufacturing

Bookkeeping & Reporting for Engineering & Manufacturing Companies

Engineering bookkeeping requires sector-specific expertise due to:

• job costing
• tracking machine hours
• material usage
• subcontractor work
• overtime payroll
• multi-phase projects
• stock control
• depreciation schedules

We provide:

Bookkeeping Services

• Bookkeeping
• Xero Bookkeeping
• QuickBooks Bookkeeping
• Small Business Bookkeeping
• Sole Trader Bookkeeping
• Payroll Bookkeeping
• Outsourced Bookkeeping
• Real Estate Bookkeeping (for storage/plant rental)
• Construction Bookkeeping (EPC & engineering contractors)
• Accounting Bookkeeping
• Basic Bookkeeping

Engineering-specific bookkeeping includes:

• WIP reporting
• cost of goods manufactured (COGM)
• production run costing
• stock valuation for raw materials & finished goods
• waste & scrap calculations
• machine utilisation costing
• project-based income reporting
• subcontractor invoice tracking

Bookkeeping Contracts & Templates

We prepare structured agreements for:

• engineering subcontractors
• production assembly teams
• installation contractors

Management & Annual Accounts

We prepare:

• Management Accounts
• Annual Accounts
• Companies House Filing
• Ltd Company Accounts

Engineering & manufacturing management reports include:

• production cost breakdowns
• margin analysis
• productivity KPIs
• equipment depreciation schedules
• overtime & labour cost efficiency
• plant utilisation data
• expense variance analysis

These insights help reduce waste, optimise production and increase profitability.

Tax Services for Engineering & Manufacturing

Engineering firms have high tax exposure but also major tax-saving opportunities.

CIS Services (Engineering & Industrial Construction)

For engineering businesses involved in installation or construction services:

• plant installation
• mechanical fitting
• electrical installation
• factory construction
• infrastructure projects

We provide:

• CIS registration
• CIS for subcontractors
• CIS & VAT compliance
• CIS penalties & appeals
• CIS refunds
• CIS filing

Personal Tax & Self-Assessment for Engineers

We assist:

• mechanical engineers
• electrical engineers
• technicians
• consultants
• designers
• welders & fabricators
• contractors and subcontractors

Services include:

• Personal Tax Filing
• Self-Assessment
• Allowable deductions
• Penalties & appeals
• Tax planning
• Making Tax Digital compliance

Typical deductions:

• tools
• PPE
• software
• travel
• training
• home office

Small Business Tax Services

Engineering SMEs often scale rapidly.
We offer:

• Small Business Tax Returns
• Tax Planning
• Business Structuring
• Self-employed Registration

VAT Services for Engineering & Manufacturing

VAT is often complicated due to:

• imports & exports
• mixed VAT rates
• reverse charge VAT
• supply chain complexities
• tooling & machinery VAT reclaim
• zero-rated exports

We handle:

• VAT Registration
• VAT Deregistration
• VAT Filing & Submission
• VAT Reclaim & Refunds
• VAT Number Verification
• International VAT
• VAT Advisory

Engineering firms often overpay VAT — we fix that.

Corporation Tax for Engineering & Manufacturing

We maximise tax efficiency through:

• Corporation Tax Filing
• Corporation Tax Returns
• Capital allowances
• Machinery depreciation strategy
• R&D Tax Relief optimisation
• Corporation Tax Appeals
• Tax Planning

Engineering companies frequently qualify for R&D — we ensure every eligible cost is included.

Advanced Tax Planning

We support:

• high net worth engineering directors
• owners of industrial companies
• succession planning
• inheritance tax planning
• investment structures
• retirement strategies
• penalty appeals

Payroll & Pension Services for Engineering & Manufacturing

Payroll is highly complex due to:

• overtime
• shift work
• hazard pay
• contractor involvement
• project-based labour
• bonus schemes

We provide:

Payroll Services

• Monthly Payroll
• Payroll for Engineers & Technicians
• Contractor Payroll
• Payroll Reconciliation
• Payroll Setup
• Xero, QuickBooks, Sage Payroll
• Outsourced Payroll Management

Pension Services

• Pension scheme management
• Directors’ pensions
• Pension tax advisory
• PAYE registration & filing

Company Formation & Corporate Governance

We assist with:

• company formation
• multi-entity structures
• holding companies
• EORI registration (imports/exports)
• confirmation statements

Manufacturers often require complex legal structures — we design compliant, scalable setups.

Advisory Services for Engineering & Manufacturing

We offer consulting for:

• production cost optimisation
• equipment investment planning
• R&D tax relief evaluation
• international expansion
• supply chain cost analysis
• automation ROI modelling
• cashflow forecasting
• operational scaling
• overseas tax advisory

Real Case Studies

Case Study 1 — Precision Engineering Firm

Problems: high scrap costs, lack of cost tracking, VAT confusion.
Solutions:

• WIP tracking
• job costing system
• VAT restructuring

Result: waste reduced by 14%, margins improved significantly.

Case Study 2 — Manufacturing Plant

Problems: outdated accounts, no R&D claims, complex payroll.
Solutions:

• full accounts rebuild
• R&D claim preparation
• automated payroll

Result: £62,000 R&D refund and 30% less admin.

Case Study 3 — EPC Engineering Contractor

Problems: multi-contract confusion, subcontractor errors (CIS), poor tax planning.
Solutions:

• CIS management
• project accounting
• corporation tax strategy

Result: major compliance improvements and reduced tax liability.

Client Reviews

Daniel Walker, Director — Walker Industrial Engineering
“The detail and precision of their reporting is exceptional. They understand engineering accounting on a deep level.”

Emily Harris, CEO — Apex Manufacturing Group
“Our R&D relief claims and cost analysis improved dramatically thanks to Audit Consulting Group.”

Oliver Pearson, Owner — Pearson Fabrication UK
“Reliable, professional and always ready to help. Their payroll and VAT support is outstanding.”

FAQ

Do you work with small engineering firms?

Yes — from sole traders to large industrial plants.

Do you support manufacturing companies with stock and WIP reporting?

Absolutely — we specialise in production cost accounting.

Can you help us claim R&D tax relief?

Yes — we identify all eligible costs and file claims.

Do you handle VAT for imports/exports?

Yes — including EORI and international VAT.

Ready to Strengthen Your Engineering or Manufacturing Business?

Audit Consulting Group
+44 7386 212550
info@auditconsultinggroup.co.uk