Introduction
For many construction business owners, tax is something that “just happens” after the year has ended. You hand everything over to your accountant, wait for the accounts to be done, and then brace yourself for the tax bill.
The problem?
By the time that bill arrives, it’s already too late to do anything about it.
At Accounting Matters, we believe construction businesses deserve better than tax surprises and last-minute stress. That’s why we place huge importance on the Month-9 tax planning meeting — without exaggeration, it’s often the most important financial meeting of the year.
For construction companies dealing with fluctuating cash flow, CIS deductions, retentions, VAT, payroll and rising costs, Month-9 is the point where control replaces guesswork.
This blog explains what Month-9 is, why it matters so much in construction, and how it can save you money, stress, and sleepless nights.
What Is Month-9 Tax Planning?
Month-9 refers to the point nine months into your financial year. At this stage:
- Around 75% of your trading year has already happened
- There is still enough time left to take action
- Your numbers are reliable enough to forecast tax accurately
A Month-9 meeting is not about filing returns.
It’s about looking forward, not backward.
At Accounting Matters, Month-9 meetings focus on:
- Forecasting your likely tax bill
- Reviewing cash flow
- Identifying tax-saving opportunities
- Planning dividends and drawings
- Avoiding year-end shocks
For construction businesses, this timing is critical.
Why Month-9 Matters More in Construction Than Other Industries
Construction businesses are not predictable.
You deal with:
- Stage payments
- Retentions
- CIS deductions
- Reverse charge VAT
- Irregular project income
- Labour and material cost volatility
Two construction businesses with the same turnover can have very different tax outcomes depending on:
- Timing of invoices
- Cost overruns
- Equipment purchases
- CIS offsets
- VAT treatment
Annual accounting doesn’t capture this complexity early enough.
Month-9 does.
The Biggest Construction Tax Mistake: Waiting Until Year-End
One of the most common things we hear from new construction clients is:
“We had no idea the tax bill was going to be that high.”
That usually happens because:
- No forecasting was done during the year
- Dividends were taken without planning
- VAT and CIS were treated separately
- Equipment purchases weren’t timed properly
- Cash wasn’t ring-fenced
By the time the accounts are prepared, every planning opportunity has passed.
Month-9 changes that.
What We Review at a Month-9 Meeting (Construction Focused)
A proper Month-9 meeting goes far beyond “here’s your profit so far”.
At Accounting Matters, we review:
1. Profit and Tax Forecast
We calculate your expected year-end profit and forecast:
- Corporation tax (or income tax for sole traders)
- Dividends tax exposure
- Personal tax implications
This removes uncertainty and allows planning.
2. Cash Flow Position
Profit doesn’t pay wages — cash does.
We assess:
- Current bank balances
- Outstanding debtors
- Retentions held
- Upcoming payroll, VAT and CIS liabilities
This ensures tax planning doesn’t damage cash flow.
3. CIS Reconciliation
CIS deductions are often misunderstood and under-utilised.
At Month-9 we check:
- CIS suffered vs tax payable
- Any over-deductions
- Whether offsets are being claimed correctly
For some construction businesses, this alone can free up thousands.
4. VAT and Reverse Charge Impact
Reverse charge VAT has removed the VAT cash buffer many construction firms relied on.
We review:
- VAT position to date
- Upcoming VAT quarters
- Impact on cash flow
- Whether pricing and payment terms need adjusting
VAT planning is cash-flow planning.
5. Capital Allowances and Equipment Purchases
Month-9 is the ideal time to decide whether to:
- Buy or lease plant or vehicles
- Upgrade tools or machinery
- Invest before year-end for tax relief
Buying at the right time can significantly reduce your tax bill — buying too late does nothing.
6. Director Salary & Dividends
For limited companies, this is crucial.
We review:
- What you’ve already taken
- What’s safe to take
- How to structure drawings tax-efficiently
- Whether adjustments are needed before year-end
This avoids personal tax shocks later.
How Month-9 Saves Construction Businesses Money
Month-9 planning allows us to:
- Reduce taxable profit legally
- Avoid unnecessary tax payments
- Spread cash demands sensibly
- Prevent panic decisions
- Improve long-term profitability
We often see construction businesses save thousands of pounds simply by acting three months earlier than they used to.
Why Month-9 Reduces Stress (Not Just Tax)
Construction directors carry enough pressure already:
- Deadlines
- Staff
- Subcontractors
- Clients
- Materials
- Weather
Tax uncertainty adds unnecessary stress.
After a Month-9 meeting, clients usually say:
- “At least I know where I stand.”
- “I can plan for that.”
- “That’s a relief.”
Clarity is powerful.
Why Most Accountants Don’t Offer Month-9 Planning
Unfortunately, many accountants:
- Focus only on year-end compliance
- Don’t specialise in construction
- Don’t have real-time data
- Don’t schedule proactive reviews
Month-9 requires:
- Up-to-date bookkeeping
- Regular client contact
- Industry knowledge
- Forward-thinking advice
At Accounting Matters, this is built into how we work.
Real-World Construction Example
A construction company came to us after several years of:
- Surprise tax bills
- Cash flow stress
- No forecasting
At their first Month-9 meeting:
- We identified a £42,000 potential tax bill
- Planned capital purchases
- Adjusted dividend strategy
- Corrected CIS offsets
By year-end, the tax bill was reduced significantly — but more importantly, it was expected and planned for.
The director told us:
“That meeting changed how we think about tax completely.”
Who Should Be Having a Month-9 Meeting?
Month-9 planning is especially important if you:
✔ Are in the construction industry
✔ Turn over £150k+
✔ Use subcontractors
✔ Are a limited company
✔ Are moving from sole trader to limited
✔ Feel unsure about your tax position
✔ Want fewer surprises
If that’s you — Month-9 matters.
How Accounting Matters Approaches Month-9
Our Month-9 meetings are:
- Scheduled in advance
- Clear and jargon-free
- Based on real numbers
- Tailored to construction
- Focused on action, not theory
We don’t just tell you the problem — we give you the plan.
Conclusion: Month-9 Is Where Control Begins
In construction, timing is everything — and tax is no different.
Once the year ends, options disappear.
At Month-9, options still exist.
That’s why Month-9 is not “just another meeting”.
It’s the moment where tax stops being a shock and starts being a strategy.
At Accounting Matters, we believe every construction business deserves that level of clarity and control.
You build the projects.
We help you plan the future behind them.
Ready to take control of your tax before it’s too late?
📩 welcome@accountingmatters.co.uk
📞 01773 747990
🌐 www.accountingmatters.co.uk