Every Great Trade Business Starts Somewhere
At Accounting Matters, we’ve worked with hundreds of plumbing and heating engineers across Derbyshire, Nottinghamshire and beyond.
Some come to us with established teams and vans already on the road; others arrive right at the beginning — full of ambition, tools polished, and a brand-new logo waiting to go on the van.
This is the story of one of those beginnings.
We’ll call him Tom — a qualified plumber who decided it was time to build something of his own.
The Starting Point – A Van, a Dream and a Head Full of Questions
When Tom first walked into our Ripley office, he’d just left employment with a local heating contractor. He had a van, a few loyal customers, and a notebook full of quotes he wanted to win.
What he didn’t have was clarity about how to set up his business properly.
Like many new tradespeople, he had questions we hear all the time:
“Should I be a sole trader or a limited company?”
“What do I do about CIS?”
“How do I handle VAT if I start working for contractors?”
“What happens when I take someone on?”
Tom wasn’t looking for a lecture — he wanted practical answers and a bit of guidance from people who understood his trade. That’s exactly what we gave him.
Step One – Laying the Foundations
Before we talked about numbers, we talked about goals.
What did Tom want his business to look like in a year? Three years? Five?
He wanted to:
- Work mainly on boiler installs and maintenance contracts.
- Grow to two engineers and an apprentice within three years.
- Build a reputation for reliability, not just speed.
With that vision in mind, we created his financial foundations:
- Registered the company correctly with Companies House and HMRC.
- Set up his CIS status — both as a subcontractor and, later, as a contractor.
- Registered for VAT at the right time, ensuring he benefitted from reclaiming input VAT on his new tools and van.
- Integrated Xero, Dext and SmartVault so every receipt and invoice flowed straight into his books.
By getting these building blocks right early, Tom could focus on work rather than paperwork.
Step Two – Understanding CIS and Cash Flow
Tom’s first few jobs were subcontracting for a local builder under CIS.
Each payment came with 20% tax deducted at source. Understandably, he panicked:
“They’re taking hundreds off me every week — how am I supposed to survive?”
We explained that those deductions weren’t lost; they were advance payments toward his tax.
We helped him track each CIS statement, keep his records tidy, and — when the year ended — we submitted his first return.
Within a few weeks, HMRC issued a CIS refund of over £3,000.
That lump sum paid for new signage, a website, and a second set of tools for future staff.
Tom told us later that getting that rebate changed everything:
“It felt like the business finally had breathing space. I could invest instead of just survive.”
Step Three – VAT & the Domestic Reverse Charge
As Tom’s client list grew, more of his work came through large contractors, which meant dealing with the Domestic Reverse Charge VAT scheme.
He’d heard horror stories from other trades about undercharging VAT or paying HMRC twice.
We configured his Xero system so the correct VAT treatment applied automatically. Each invoice clearly stated:
“VAT Reverse Charge – Customer to account for output tax to HMRC.”
We provided Tom with template invoices, trained him on how to spot when the reverse charge applied, and monitored his quarterly VAT submissions.
No confusion, no penalties, no stress — just smooth compliance exactly as HMRC intended.
Step Four – Growing the Team
Eighteen months in, Tom reached a turning point. He couldn’t handle the workload alone.
He wanted to bring on an apprentice and one experienced engineer.
We helped him:
- Set up BrightPay payroll for accurate PAYE and pension calculations.
- Understand his responsibilities as an employer under HMRC rules.
- Create a cash-flow forecast to ensure he could afford wages even in quieter months.
We also showed him how to claim the Apprenticeship Levy funding available in his region — something he didn’t even know existed.
That support gave him confidence to grow without financial fear.
Step Five – Month-9 Planning: Staying Ahead of Tax
Like all our clients, Tom joined our Month-9 Tax Planning Programme.
We ran his numbers nine months into the year to forecast profits, Corporation Tax, and dividends.
He discovered he could:
- Make a company pension contribution before year-end to reduce his tax bill.
- Replace his van and claim full capital allowances under the Annual Investment Allowance.
- Set aside an exact figure each month to cover Corporation Tax.
When January rolled around, there were no surprises — just confidence.
Step Six – Moving from Jobs to Business
Two years later, Tom wasn’t “a plumber with a van” anymore.
He was the director of a growing heating company with a small team, regular contracts, and a clear strategy.
We worked with him to:
- Create a three-year business plan with realistic growth targets.
- Analyse job profitability using Xero reports.
- Identify which service lines (boiler servicing vs installations) produced the best margins.
- Implement quarterly management accounts so decisions were based on data, not guesswork.
That level of visibility transformed his thinking.
“For the first time,” Tom said, “I feel like I’m running a company — not just working in one.”
The Results – A Thriving, Compliant, Confident Business
Today, Tom’s business:
- Employs three engineers and an apprentice.
- Operates two vans across Derbyshire and Nottinghamshire.
- Files VAT, CIS, and payroll returns on time every month.
- Has steady cash flow and no debt.
- Knows his exact tax position all year round.
Most importantly, he now spends weekends with his family instead of catching up on paperwork.
At Accounting Matters, that’s what success looks like: not just bigger profits, but more control, confidence, and time.
What This Story Teaches
Tom’s story isn’t unusual.
We meet skilled, hardworking engineers every week who are brilliant at what they do but frustrated by the financial side.
The key lessons from his journey are:
- Get setup right from day one. Correct registrations and software prevent costly errors later.
- Track CIS properly. Those deductions are your money — claim them back.
- Understand VAT. Reverse charge rules protect you only if you apply them correctly.
- Plan proactively. Month-9 forecasting keeps your business one step ahead.
- Invest in support. A good accountant pays for themselves many times over.
Why Plumbing & Heating Businesses Choose Accounting Matters
We know your trade. We understand that a day in your life involves early starts, unpredictable jobs, and constant problem-solving.
You don’t need accounting jargon — you need clear, reliable advice from people who get how your business actually works.
That’s why plumbing and heating engineers choose us:
✅ CIS and VAT expertise – No more confusion or overpayments.
✅ Trade-specific systems – Xero, Dext, SmartVault set up exactly for your workflow.
✅ Proactive tax planning – We tell you what’s coming, not what’s already happened.
✅ Approachable team – Real people, real conversations, real results.
When we say Accounting Does MATTER, we mean it — because your success matters to us.
What’s Next for Tom (and Clients Like Him)
Our relationship with Tom continues. He still calls for advice before making big decisions — new vans, staff bonuses, or expanding into renewable energy systems.
We review his figures every quarter, keep his compliance watertight, and ensure his company grows sustainably.
It’s a partnership — one built on trust, clarity, and shared goals.
If his story sounds familiar — if you’re ready to move from “getting by” to growing strong — we can help you do the same.
Thinking About Starting or Growing Your Own Plumbing Business?
Whether you’re just picking up the keys to your first van or managing a small team already, we can help you:
- Choose the right business structure.
- Register correctly for CIS, VAT, and payroll.
- Set up software that saves hours every week.
- Plan ahead for tax and cash flow.
- Turn your trade into a sustainable, profitable business.
Let’s Build Your Success Story
If you’re a plumbing or heating engineer who wants an accountant that understands your industry, your challenges, and your goals, we’d love to hear from you.
📞 Call us: 01773 747990
📧 Email: welcome@accountingmatters.co.uk
🌍 Visit:www.accountingmatters.co.uk
At Accounting Matters, we don’t just file numbers — we help build businesses.
Because every thriving plumbing company starts with the same foundation: accounting that truly matters.