Introduction – Too Many Engineers Panic in January
For most plumbing and heating engineers, January is the month of panic. HMRC’s Self Assessment deadline looms, the tax bill drops through the door, and suddenly you’re scrambling to find cash that should have been set aside months ago.
It’s a cycle we see all too often: long days on site, evenings spent catching up on quotes and paperwork, and then—just when you’re finally slowing down after the busy winter heating season—the tax bill hits.
But it doesn’t have to be this way. With proactive Month-9 Tax Planning, you can know your tax position well before year-end, take action to reduce it, and avoid that January dread. At Accounting Matters, this is one of the most valuable services we offer plumbing and heating clients.
Why Month-9 Is Critical for Planning
Most businesses run to a 12-month accounting year. By Month-9, you’ve completed three-quarters of the year, meaning we can forecast your likely profit with a high degree of accuracy.
At this stage, you have enough trading history to:
- See how profitable the year is shaping up.
- Spot any looming tax bills.
- Take action to legally reduce your liability before it’s too late.
If you wait until the accounts are finalised after year-end, your options are limited. By acting in Month-9, you’ve still got three months left to make smart decisions.
Forecasting Profit, Working Out Tax Before It’s Due
Here’s what Month-9 planning looks like in practice:
- We run your year-to-date numbers – Using Xero, Dext, or Hubdoc, we pull your income and expenses to date.
- We forecast the last three months – Based on your past trading patterns (e.g., busy boiler season, slower summer months).
- We project your year-end profit – Giving you a clear picture of what you’ll owe in Corporation Tax (if limited) or Income Tax (if sole trader).
- We check payments on account – Making sure you’re not overpaying or underpaying towards next year’s bill.
The result? A clear, no-surprises view of your tax liability—months in advance.
Adjusting Dividends, Wages, Pensions & Expenses
Once we know where you stand, we can make strategic adjustments:
- Dividends – As a company director, you can take dividends within your tax-free allowance. We’ll check whether you should draw more now or hold off to avoid tipping into a higher tax band.
- Wages – Adjusting your director’s salary can sometimes save both Income Tax and National Insurance.
- Pensions – Contributions can reduce your Corporation Tax bill and build your retirement pot at the same time.
- Expenses – We make sure every allowable cost is included: vans, tools, mileage, training, insurances, uniforms, and even use of home as office.
Each of these decisions can make a meaningful difference. Month-9 is about having choices instead of being stuck with whatever the tax bill says in January.
Benefits – No Nasty Tax Shocks, Better Cash Flow, More Control
The biggest benefit of Month-9 planning is certainty. You’ll know months in advance:
- What you owe.
- When you owe it.
- How you can reduce it.
This transforms your cash flow. Instead of scrambling to find money in January (often after the Christmas slowdown), you can plan ahead. Many of our plumbing and heating clients choose to put tax savings aside each month in a dedicated account—peace of mind in a bank balance.
It’s also about control. With proactive planning, you’re steering the ship instead of reacting to the waves.
Specific Tax Opportunities for Plumbing & Heating Engineers
Every industry has its quirks, and the plumbing/heating trade is no different. Here are a few areas we look at in Month-9 reviews:
- Capital allowances on vans & tools – Vans, boilers, pipe benders, diagnostic equipment… all may qualify for full relief through the Annual Investment Allowance.
- Mileage claims – If you’re using your own vehicle, mileage can be a significant deduction.
- Training courses – Gas Safe renewals, new boiler system training, or health & safety courses are all allowable.
- Protective clothing & uniforms – Even laundry costs can be claimed if handled correctly.
- Subcontractor costs (CIS) – Making sure deductions are correctly recorded and set against your tax bill.
- Flat Rate vs Standard VAT – For some heating engineers, switching VAT schemes at the right time can save thousands.
These opportunities are often missed when accountants only crunch numbers after year-end.
Real-World Scenario – How Planning in Month-9 Saved a Client Thousands
Let’s take an example (details anonymised):
John, a heating engineer running his own limited company, came to us worried about his January bill. In Month-9 we ran his figures and forecasted a Corporation Tax bill of around £24,000.
By planning ahead, we:
- Increased his pension contributions by £10,000.
- Claimed full capital allowances on a new van.
- Adjusted his dividends to stay below the higher tax threshold.
Result? His tax bill dropped by over £6,000, and because he had three months’ notice, he set aside the money in advance. January came and went—no panic, no stress.
How Accounting Matters Makes It Simple
Month-9 tax planning isn’t about drowning you in jargon or spreadsheets. Our process is simple:
- We meet with you (in person or online).
- We show you the numbers in plain English.
- We give you clear options.
- You decide what works best for you.
We then update your forecasts and keep you on track until year-end.
For plumbing and heating engineers, this proactive approach is invaluable. It means you’re never blindsided by HMRC and you can focus on running your business.
The Peace of Mind Factor – Planning = Confidence
Running a plumbing and heating business is stressful enough—emergency call-outs, long hours, managing staff, chasing invoices. The last thing you need is tax stress hanging over your head.
Month-9 planning gives you:
- Clarity – You know your numbers.
- Confidence – You’ve made the right decisions.
- Control – You’re not at the mercy of surprise bills.
It’s peace of mind you can’t put a price on.
Call to Action – Book Your Month-9 Planning Meeting
If you’re a plumbing or heating engineer, don’t leave your tax to chance. January panic is avoidable—if you plan ahead.
At Accounting Matters, we specialise in helping trades like yours:
Forecast profits and tax before it’s too late.
Identify opportunities to reduce liability.
Help you plan cash flow with confidence.
Make the numbers simple, not stressful.
📞 Call us today on 01773 747 990
🌐 Visit www.accountingmatters.co.uk
📧 Email welcome@accountingmatters.co.uk
Take control of your tax before it takes control of you. Book your Month-9 tax planning meeting with Accounting Matters—because your trade deserves proactive support, not reactive surprises.