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

Accounting Services for Engineering & Manufacturing UK

Professional accounting services for engineering and manufacturing companies in the UK. We support cost accounting, payroll, VAT, and compliance with transparent pricing. Our services help manufacturers manage finances efficiently while reducing accounting costs.