Burglar alarm installation is outside the Construction Industry Scheme.
It is excluded by name. Finance Act 2004 lists “the installation of security systems, including burglar alarms, closed circuit television and public address systems” among the operations the scheme does not cover.
That single fact is worth knowing, because a lot of alarm firms are having 20% taken off invoices for work that was never in scope.
What is and is not covered
Outside CIS:
- Burglar and intruder alarms
- Security CCTV
- Public address systems
- Electronic door entry
- Computerised locking systems
HMRC’s reasoning is that these are electronic systems whose installation has no substantial effect on the fabric of the building.
Still inside CIS:
- Gates, barriers and security bollards
- Security fencing, treated as ordinary fencing
- Door access involving structural installation
- Safes integrated into the building structure
- Any groundworks or ducting you carry out
Most alarm firms are entirely outside the scheme. Firms that also fit gates, barriers or perimeter security are partly inside it.
What usually needs fixing
Deductions taken in error. A main contractor applies CIS to everything without checking. You can reclaim it through your corporation tax return or an in-year repayment claim.
Registration you did not need. Some firms register and file monthly returns for work that was never in scope.
VAT applied wrongly. The domestic reverse charge only applies to construction services within CIS. Since alarm installation sits outside, you charge VAT normally. Firms that have adopted the reverse charge across the board have a problem in the other direction.
Monitoring and maintenance income. Recurring monitoring contracts and annual maintenance are a different revenue stream to installation, and should be accounted for separately. It is usually the steadier margin, and firms often cannot see it because it is mixed in with everything else.
What we do
Establish which of your work sits inside the scheme, if any, and stop deductions being taken from work that does not.
Reclaim what has already been deducted in error.
Get the VAT treatment right across installation, monitoring and maintenance.
Separate your recurring revenue from your installation revenue, so you can see what each is actually worth. Recurring monitoring income also does more for the value of the business than installation work does, which matters if you ever sell.
The routine compliance runs alongside all of that. Accounts, corporation tax, VAT, payroll and self assessment.
Who we work with
UK security and alarm installation limited companies turning over between £500,000 and £5 million. We work across the whole UK.
Common questions
Do alarm fitters need to register for CIS?
For alarm and security system installation, no. It is excluded by statute. If you also install gates, barriers or security fencing, or you carry out groundworks, those elements are within the scheme.
A contractor has deducted CIS from my invoice. Can I challenge it?
Yes. Security system installation is not a construction operation. Worth raising with them, and reclaimable either way.
How do I get deducted CIS back?
Through your corporation tax return, or an in-year repayment claim if the amount justifies it.
Do I charge VAT on alarm installation to a contractor?
Yes. The reverse charge follows CIS scope, and this work sits outside it.
What about monitoring contracts?
Standard VAT, outside CIS, and worth tracking separately from installation income.
Book a call. If CIS has been deducted from your alarm work, we will tell you what you can get back.
Common questions
Does CIS apply to alarm fitters?
Burglar alarm installation is outside the Construction Industry Scheme. It is excluded by name. Finance Act 2004 lists “the installation of security systems, including burglar alarms, closed circuit television and public address systems” among the operations the scheme does not cover. That single fact is worth knowing, because a lot of alarm firms are having 20% taken off invoices for work that was never in scope.
Does the VAT domestic reverse charge apply to alarm fitters?
No. The reverse charge only applies to supplies that fall within CIS. Because alarm fitters work sits outside the scheme, it sits outside the reverse charge as well, and you charge VAT in the normal way.
Who we work with
- Sector: construction only. Contractors, subcontractors and the trades that work on site.
- Turnover: roughly £500,000 to £5 million a year.
- Structure: mostly limited companies, plus established sole traders and partnerships.
- Where: our office is in Cannock, Staffordshire. We work with clients across the UK on cloud accounting.
Who we are not for: businesses outside construction, property developers, brand new start-ups with no trading history, and anyone who wants filing done and nothing else.
If you are not sure, here is the longer version. We will tell you on the first call if we are not the right fit.