A guide for Plumbing & Heating Business Owners – from Accounting Matters
1. Introduction – Why January Panic Is So Common in the Trade
At Accounting Matters, we see the same pattern every year across the plumbing and heating industry.
January arrives.
The phone rings.
And the conversation usually starts with:
“I’ve just had my tax bill… I didn’t expect it to be that high.”
The frustrating part?
In almost every case, that tax bill was predictable months earlier.
Plumbing and heating engineers work incredibly hard. Winter is busy, margins are tight, costs are rising, and admin often comes last. When tax is left until year-end, it feels sudden, stressful, and out of your control.
That’s exactly why Month-9 tax planning exists — and why it’s one of the most valuable meetings a plumbing or heating business owner can have.
2. What Is Month-9 (And Why It Matters So Much)?
Month-9 refers to the point nine months into your accounting year.
For most businesses, this is the moment when:
- You’ve completed around 75% of the year’s trading
- Your profit position is clear and reliable
- There is still time to take action
At Month-9, your numbers tell a very accurate story — but crucially, the year isn’t finished yet.
That means decisions made at this point can still:
- Reduce tax legally
- Improve cash flow
- Avoid nasty surprises
- Put you back in control
Leave it until Month-12 (year-end), and your options are gone.
3. Why Month-9 Is Especially Important for Plumbing & Heating Businesses
Plumbing and heating businesses are not “steady” all year round.
They are affected by:
- Seasonal demand (winter rush vs summer dip)
- Emergency call-outs
- Fluctuating material prices
- CIS deductions
- VAT timing
- Subcontractor costs
- Fuel and van expenses
This makes reactive tax planning dangerous.
Month-9 planning works perfectly for the trade because:
- It usually lands during or just after the busy winter period
- Cash flow is often stronger
- There is still flexibility to adjust decisions
- You’re not yet locked into the final figures
For trade businesses, Month-9 is the last sensible checkpoint before HMRC deadlines take over.
4. The Problem with “We’ll Deal With It at Year-End”
Many plumbers and heating engineers are used to once-a-year accounting.
The problem with that approach is simple:
- Year-end accounts show what already happened
- They don’t allow you to change the outcome
By the time your accountant prepares your final accounts:
- Your profit is fixed
- Your tax bill is fixed
- Your cash position is already impacted
Month-9 planning flips that on its head.
Instead of reacting, you’re planning ahead.
5. What We Actually Do in a Month-9 Tax Planning Meeting
At Accounting Matters, Month-9 planning is not a quick chat or generic report.
It’s a structured review designed specifically for growing trade businesses.
During the meeting, we:
✅ Review year-to-date figures
Using live data from Xero and your bookkeeping, we assess:
- turnover
- costs
- margins
- cash position
✅ Forecast the full year
We project how the final three months are likely to look based on:
- seasonal trends
- pipeline work
- historic performance
✅ Calculate your estimated tax
Whether you’re a sole trader or limited company, we estimate:
- Income Tax / Class 4 NIC
- Corporation Tax
- Payments on account
- Dividend tax exposure
✅ Identify planning opportunities
This is where the value really lies.
6. The Tax Planning Opportunities Only Available at Month-9
Once you know where you’re heading, you still have time to act.
Depending on your business structure, we may discuss:
🔧 Capital allowances
- Vans
- Tools
- Equipment
- Diagnostic gear
Purchasing before year-end can reduce taxable profits significantly.
💼 Director salary & dividends
For limited companies:
- adjusting remuneration to stay within lower tax bands
- avoiding unnecessary dividend tax
🧓 Pension contributions
Company pension contributions:
- reduce Corporation Tax
- build long-term wealth
- extract profits tax-efficiently
🧾 Expense reviews
Ensuring all allowable costs are captured correctly:
- fuel
- mileage
- home office
- training
- uniforms
- insurances
📊 CIS positioning
Reviewing deductions to:
- ensure correct treatment
- plan cash flow
- avoid over-deduction
Once the year ends, these levers disappear.
7. Month-9 Planning = Cash Flow Control
One of the biggest benefits for plumbers and heating engineers is cash flow clarity.
Instead of guessing:
- what tax you’ll owe
- when it’s due
- whether you’ll have the money
You know in advance.
This allows you to:
- set aside tax monthly
- avoid last-minute borrowing
- plan personal drawings safely
- sleep better at night
Busy trade businesses don’t fail because they aren’t profitable — they fail because cash flow isn’t planned.
Month-9 planning fixes that.
8. Why CIS & VAT Make Month-9 Even More Important
For plumbing and heating businesses working under CIS or VAT, Month-9 is critical.
CIS
- Deductions affect cash flow all year
- Refunds are often delayed
- Planning prevents over-reliance on rebates
VAT
- Quarter timing matters
- Reverse charge impacts turnover perception
- VAT liabilities can hit before payment is received
Month-9 planning ensures:
- CIS and VAT don’t catch you out
- liabilities are anticipated, not feared
- decisions are made with full visibility
9. A Real-World Example We See Time and Again
A heating engineer comes to us in December.
Busy year. Strong turnover.
But anxious about tax.
At Month-9 we forecast:
- higher-than-expected profit
- significant Corporation Tax exposure
Because there was still time, we:
- restructured remuneration
- brought forward van replacement
- made a pension contribution
- adjusted dividend timing
Result:
- thousands saved legally
- no January panic
- tax paid from planned funds
Without Month-9 planning, none of that would have been possible.
10. Why Most Accountants Don’t Offer Month-9 Planning
In our experience, many accountants:
- focus on compliance only
- work retrospectively
- don’t have live data
- don’t understand trade cash cycles
Month-9 planning requires:
- up-to-date bookkeeping
- cloud systems
- proactive contact
- industry understanding
At Accounting Matters, this approach is built into how we support plumbing and heating clients — because it genuinely changes outcomes.
11. Who Needs a Month-9 Tax Planning Meeting Most?
Month-9 planning is essential if you are:
- a plumbing or heating business
- VAT registered
- paying CIS or subcontractors
- operating as a limited company
- growing toward or beyond £150k–£250k turnover
- tired of tax surprises
If any of these apply, once-a-year accounting is no longer enough.
12. Month-9 Planning Changes the Way You Think About Tax
The biggest shift we see after the first Month-9 meeting is mindset.
Clients move from:
❌ “How much do I owe?”
to
✅ “How do we plan this properly?”
Tax stops being something that happens to you and becomes something you manage.
That’s a powerful change.
13. Why Plumbing & Heating Clients Choose Accounting Matters
Our trade clients choose us because we:
- understand plumbing & heating businesses
- understand CIS and VAT complexity
- work in real time, not hindsight
- speak plain English
- contact you before problems arise
- plan ahead, not panic later
Month-9 planning is just one part of a bigger picture — proactive, supportive accounting that grows with your business.
14. Final Thought – This One Meeting Can Change Everything
If you take one thing from this blog, let it be this:
Your tax bill is not inevitable — it’s manageable if you plan early enough.
Month-9 is the last meaningful opportunity to influence the outcome of your year.
Miss it, and you’re reacting.
Use it, and you’re in control.
15. Ready to Book Your Month-9 Tax Planning Meeting?
If you’re a plumbing or heating business owner and you want:
- clarity
- control
- no surprises
- better cash flow
- proactive support
We’d love to help.
📞 01773 747990
📧 welcome@accountingmatters.co.uk
🌍 www.accountingmatters.co.uk
At Accounting Matters, we believe the most important tax meeting of the year shouldn’t happen after the year ends.
It should happen at Month-9 — while there’s still time to make it count.