Accountants for Painters in Leeds, 7 Costly Tax Mistakes

Accountants for painters stop small tax slips from turning into big bills. Most painters don't overpay because they cheat or cut corners. They overpay because nobody showed them the rules that apply to their trade.

This guide is for painters across Leeds and West Yorkshire. It covers the sole trader doing bay windows in Headingley and the crew on new flats along the South Bank. It also covers the painter heading out from Batley every morning with a ladder on the roof.

Below you'll find the seven mistakes we see most often. Each one comes with a simple fix.

Why So Many Painters Overpay Tax

Painting is one of the few trades where two tax systems run side by side. Contract work for builders runs through CIS, with tax taken before you're paid. Private work for homeowners comes in with no tax taken at all.

Mixing the two makes the paperwork harder than it looks. A painter might finish a kitchen in Roundhay on Monday and start a site job in Holbeck on Tuesday. Each job needs different records and a different kind of invoice.

Add in vans, ladders, tower hire and weather breaks, and it's easy to see where money slips away.

7 Tax Mistakes Painters Make

1. Not Registering for CIS

A builder must take tax from your labour before paying you. If you're registered for CIS, they take 20%. If you're not, they take 30%.

That extra 10% is pure loss until your tax return sorts it out. On £2,000 of labour, it's another £200 gone each time.

Registering is free and quick once you have your tax reference. HMRC explains the steps in its guide for CIS subcontractors. Our CIS accountants for construction trades can register you and check every monthly statement.

2. Sending One Price for Labour and Paint

CIS only applies to labour. The paint, filler and tape you bought should be left out of the deduction.

But a builder can only leave out what your invoice shows. Send one total for the whole job and they'll usually take 20% from all of it.

The fix takes seconds. Put labour on one line and materials on another. Keep the trade counter receipts to back up the figure.

3. Waiting Until January to File

Many painters treat 31 January as the target. For CIS painters, that's a costly habit.

If builders took more tax than you owe, HMRC owes you a refund. You can file from 6 April, straight after the tax year ends. Filing in spring can get your money back nine months sooner than filing in January.

A good self assessment tax return accountant will push to file early. See how our Self Assessment service works.

4. Missing Small Everyday Expenses

Most painters remember the van and the big tools. The small stuff is where claims go missing.

Think about dust sheets, sanding pads, rags, masking tape and stirring sticks. Think about knee pads, safety boots and the share of your phone used for work. Tip charges for trade waste count too.

Each one is small. Over a year, they can add up to hundreds of pounds of extra claims.

5. Forgetting About Payments on Account

This one hits painters who do mostly private work. If your tax bill is over £1,000, HMRC asks you to pay ahead towards next year.

So your January bill can include this year's tax plus half of next year's. The rest is due on 31 July.

CIS painters often escape this. If more than 80% of your tax was already taken at source, payments on account don't apply.

6. Leaving Making Tax Digital Too Late

Making Tax Digital means sending HMRC short updates every three months through approved software. It started in April 2026 for turnover over £50,000.

From 6 April 2027, it applies to turnover over £30,000. Turnover means your income before expenses and before CIS is taken off. Most full-time painters will be in. HMRC sets out the dates on its Making Tax Digital page.

Start with the software now, so the first update isn't a scramble. We set painters up on MTD-ready cloud accounting that works from a phone.

7. Picking the Wrong VAT Scheme

You must register for VAT once your turnover passes £90,000 in any 12 months. Many painters then join the Flat Rate Scheme because it sounds simpler.

Here's the trap. If you buy very few goods, HMRC treats you as a limited cost trader and charges 16.5%. Labour-only painters, where the builder supplies paint, often fall into this group.

At that rate, the scheme can cost more than normal VAT. Always compare both before signing up.

How One Leeds Painter Got Nearly £1,900 Back

Kieran is a made-up painter based in Batley. He does site work for builders across Leeds and some private jobs in Morley. Here's his 2025/26 year done two ways.

The difference came from claims Kieran never knew about. Tower hire, workwear, van servicing, insurance, his phone and a home office allowance all went on the return.

His turnover of £42,000 also means he joins Making Tax Digital from April 2027. Because CIS covered his whole bill, he had no payments on account to make.

What a Good Painter Accountant Does for You

The best accountants for decorators and painters work around your trade, not the other way round. You shouldn't need to learn tax rules to get them right.

Here's what good support looks like.

• They match every CIS statement to your invoices each month

• They file your return early when a refund is due

• They ask about the small costs you'd never think to mention

• They warn you before a VAT or MTD deadline arrives

• They answer the phone when HMRC sends a letter

If your accountant only speaks to you once a year, you're missing most of that value.

Self-Employed or Limited Company?

Most painters start self-employed, and many stay that way. A limited company can make sense once profits grow, but it isn't a quick win.

A company pays corporation tax at 19% on profits up to £50,000. It also claims CIS back every month against its payroll taxes. That means better cash flow than waiting for a yearly refund.

The trade-off is more admin. You'll file company accounts, run a director's payroll and keep business money apart from your own. Painters looking for the best ltd accountant for painter decorator work should ask for a written comparison of take-home pay first.

Taking on an apprentice or a full-time painter brings PAYE too. Our team can run payroll for your team, including pensions and monthly HMRC reports.

Pricing Jobs Around Yorkshire Weather

Yorkshire weather shapes a painter's year. Outside work dries up once autumn rain sets in over the Pennines. Then January brings your tax bill at the quietest point of the season.

Build that into your prices. Work out your true day rate by adding up van costs, insurance, fuel and tools. Then allow for the days lost to rain and travel. A crawl along the Armley Gyratory at 8am costs you time you can't bill.

Keep a separate pot for tax on private jobs. Move a fixed share across every time a homeowner pays you. Then the January bill is already waiting.

A Simple Tax Checklist for Every Year

Tick these off and most problems never start.

• Register for CIS before your first site job

• Split labour and materials on every builder invoice

• Keep each monthly CIS statement

• Snap every receipt on the day you buy

• File your return soon after 6 April

• Check your turnover against the VAT and MTD limits

• Save for tax on private work each month

• Review sole trader versus limited company each year

Questions Painters Ask Us

How do I know if I'm owed a CIS refund?

Add up the CIS taken across the year from your monthly statements. Then compare it with the tax due on your profit after expenses. If CIS is higher, HMRC owes you the difference.

Can I claim my ladders and dust sheets?

Yes. Anything you buy and use only for painting work counts as a business expense. Keep the receipt, even for small items.

Do I need an accountant if I only do private jobs?

You don't have to use one. But private work means no tax taken upfront, so payments on account often apply. An accountant helps you plan for that bill and claim every cost.

Can I switch accountants halfway through the year?

Yes, at any time. Your new accountant contacts the old one for your records. Try not to leave it until the weeks before 31 January.

Do you only work with painters in Leeds?

No. We help painters across West Yorkshire, from Bradford and Wakefield to Huddersfield and Halifax. Most of the work runs online, with meetings at our Batley office if you prefer.

Talk to Accountants for Painters & Decorators Who Know the Trade

You work hard for every pound, so don't hand extra to HMRC. Our team helps self-employed painters and painting firms across Yorkshire claim what they're owed.

Call 01924 650980 or contact us for a free chat about your tax.