Mining Industry Accounting
UK mining and quarrying operations face complex accounting around mineral rights and royalty payments, exploration and development cost capitalisation decisions, environmental remediation provisions required under UK accounting standards, capital allowances on heavy plant and machinery, and land restoration obligations. The Aggregates Levy applies to commercial exploitation of rock, sand, and gravel in the UK.
Our mining accounting services cover exploration cost capitalisation and amortisation, mineral rights and royalty calculations, Aggregates Levy compliance, environmental provision and remediation cost accounting, heavy equipment capital allowances, land restoration obligations, and Corporation Tax planning. We help UK mining companies maintain compliant financial records while maximising capital allowance claims.
What's Included
Comprehensive services tailored to your industry needs
Industry-Specific UK Expertise
Key UK Challenges
Complexities you face
- Capitalisation vs expense decisions for exploration and development costs under FRS 102
- Complying with Aggregates Levy on commercial exploitation of rock, sand, and gravel
- Accounting for environmental remediation provisions and land restoration obligations
- Managing capital allowances on heavy plant and machinery — excavators, crushers, conveying equipment
- Mineral rights accounting — acquisition costs, royalty calculations, and depletion charges
- Health and safety compliance costs and their correct accounting treatment
Tax Considerations
HMRC rules & reliefs
- Aggregates Levy — £2 per tonne on sand, gravel, and rock commercially exploited in the UK
- Capital allowances — heavy plant and machinery eligible for AIA (£1 million) or full expensing
- Mineral extraction allowance — tax relief on capital expenditure on acquiring mineral assets
- Environmental remediation provisions — deductible when obligation is probable and amount estimable
- Land restoration — provision required under FRS 102; tax deduction available when costs are incurred
- Corporation Tax — 25% on profits; careful timing of capital expenditure for tax planning
How We Help
Our tailored solutions
- Exploration and development cost capitalisation assessments under FRS 102
- Aggregates Levy calculations and quarterly return filing
- Environmental remediation provision calculations and annual reviews
- Capital allowance claims on heavy plant, machinery, and infrastructure
- Mineral rights and royalty accounting with depletion charge calculations
- Corporation Tax returns with mineral extraction allowance and capital allowance claims
Ready to Simplify Your Mining Industry Finances?
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