Client:<\/strong> Name Khan Build Ltd (anonymised) Khan Build Ltd is a family-run construction business operating across the North West of England, specialising in \u25cf Non-compliance with MTD for VAT: VAT returns were not being submitted via MTD-compatible software, Legend Fusions deployed a structured four-phase digital transformation and compliance programme: \u25cf MTD for VAT compliance achieved and HMRC compliance notice formally resolved Khan Build Ltd’s transformation illustrates the operational and financial risks that arise when a growing business’s backoffice cannot keep up with its growth. Legend Fusions delivered far more than a compliance fix: we restructured the company’s entire financial infrastructure, eliminating regulatory exposure, recovering historical errors, and equipping Khalid with the real-time insight he needs to manage a scaling construction business with confidence.<\/p>\n Khan Build Ltd is now on a comprehensive monthly retainer with Legend Fusions, covering payroll, management Client consent has been obtained. The company name and client details have been anonymised to protect<\/strong> A Construction Company’s Transformation Client: Name Khan Build Ltd (anonymised) Industry: Construction & Civil Engineering Business Type: Owner-Managed Limited Company (15 employees) Annual Turnover: \u00a31.2 Million Services: Used Making Tax Digital | Payroll | Corporate Tax Returns | Company Secretarial Background Khan Build Ltd is a family-run construction business operating across the North West of […]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[31],"tags":[],"class_list":["post-7299","post","type-post","status-publish","format-standard","hentry","category-case-study"],"acf":[],"_links":{"self":[{"href":"https:\/\/legendfusions.com\/uk\/wp-json\/wp\/v2\/posts\/7299","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/legendfusions.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/legendfusions.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/legendfusions.com\/uk\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/legendfusions.com\/uk\/wp-json\/wp\/v2\/comments?post=7299"}],"version-history":[{"count":4,"href":"https:\/\/legendfusions.com\/uk\/wp-json\/wp\/v2\/posts\/7299\/revisions"}],"predecessor-version":[{"id":8978,"href":"https:\/\/legendfusions.com\/uk\/wp-json\/wp\/v2\/posts\/7299\/revisions\/8978"}],"wp:attachment":[{"href":"https:\/\/legendfusions.com\/uk\/wp-json\/wp\/v2\/media?parent=7299"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/legendfusions.com\/uk\/wp-json\/wp\/v2\/categories?post=7299"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/legendfusions.com\/uk\/wp-json\/wp\/v2\/tags?post=7299"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\nIndustry:<\/strong> Construction & Civil Engineering
\nBusiness Type:<\/strong> Owner-Managed Limited Company (15 employees)
\nAnnual Turnover:<\/strong> \u00a31.2 Million
\nServices:<\/strong> Used Making Tax Digital | Payroll | Corporate Tax Returns | Company
\nSecretarial<\/p>\nBackground<\/h2>\n
\ncommercial fit-outs and residential extensions. The company had grown rapidly over three years \u2014 from four
\nemployees to fifteen, but its back-office processes had not kept pace with its expansion. Records were maintained on paper ledgers and spreadsheets, payroll was processed manually each month, and VAT returns were filed based on estimates rather than live data.
\nHMRC’s Making Tax Digital (MTD) for VAT mandate had applied to the business for two years, yet the company
\nremained non-compliant, relying on a manual workaround that its part-time bookkeeper had devised. When HMRC
\nissued a compliance notice and the business owner, Khalid, received notification that his VAT account was under
\nreview, he contacted Legend Fusions for urgent support.<\/p>\nThe Challenge<\/h2>\n
\ncreating immediate regulatory risk.
\n\u25cf Manual payroll errors: two employees had been paid incorrectly for six months, creating PAYE liabilities and
\nstaff relations concerns.
\n\u25cf CIS (Construction Industry Scheme) mismanagement: subcontractor deductions had not been reported
\ncorrectly to HMRC, resulting in a potential CIS underpayment.
\n\u25cf Disorganised financial records: year-end accounts took over three months to prepare, delaying corporate tax
\nfilings and incurring HMRC late filing penalties.
\n\u25cf No formal company secretarial processes: confirmation statements were overdue and director service
\naddresses required updating at Companies House.<\/p>\nOur Solution<\/h2>\n
\n\u25cf Phase 1:<\/strong> MTD Implementation: We migrated the business onto HMRC-recognised cloud accounting software,
\nconnected it to their HMRC digital account, and configured automated VAT return submissions. All historical
\nVAT periods were reviewed and a voluntary disclosure filed to address the compliance gap.
\n\u25cf Phase 2:<\/strong> Payroll Correction & Automation: We conducted a payroll audit, identified the six months of errors,
\nand recalculated correct PAYE and National Insurance liabilities. Corrected RTI submissions were filed with
\nHMRC and affected employees received updated payslips with explanatory letters.
\n\u25cf Phase 3:<\/strong> CIS Compliance: We reviewed 18 months of subcontractor payments, reconciled deductions, and
\nsubmitted amended CIS monthly returns to HMRC. A clear internal process was established for onboarding
\nnew subcontractors with correct verification checks.
\n\u25cf Phase 4:<\/strong> Year-End & Company Secretarial: We prepared two years of overdue management accounts and
\ncorporation tax returns, cleared the Companies House filing backlog, and implemented a monthly financial
\nreview process to prevent future backlogs.<\/p>\nKey Achievements<\/h2>\n
\nwithin eight weeks.
\n\u25cf Payroll errors corrected across all 15 employees, eliminating PAYE risk and restoring
\nstaff confidence.
\n\u25cf CIS underpayment of \u00a314,300 identified and managed through an agreed HMRC
\ninstalment arrangement.
\n\u25cf Year-end accounts turnaround reduced from 3 months to 3 weeks, saving \u00a31,800 in
\nlate filing penalties.
\n\u25cf All Companies House filings brought up to date; company secretarial now managed
\non a rolling annual basis by Legend Fusions.
\n\u25cf Client’s management information is now real-time, enabling Khalid to make faster,
\ndata-driven decisions.<\/p>\nConclusion<\/h2>\n
Next Steps<\/h2>\n
\naccounts, VAT returns, CIS submissions, and year-end compliance. The business is currently exploring its eligibility for EIS investment to fund the acquisition of specialist plant equipment, an opportunity our team has flagged as part of
\ntheir growth advisory work.<\/p>\n
\nconfidentiality.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"