Introduction

If there’s one thing construction directors dread, it’s the unexpected tax bill that arrives long after anything can be done about it.

Too many firms only discover their tax liability after the year has ended — when the chance to plan, save, or reduce it has already disappeared.

This is exactly why Month-9 tax planning is so powerful. By reviewing your finances three-quarters of the way through the year, you gain early clarity on your likely tax position before the year closes. That means you still have time to act — whether that’s preparing cash, making strategic investments, or adjusting director remuneration.

And in construction — where cash flow is shaped by staged invoicing, subcontractor costs, and retention payments — Month-9 planning isn’t simply helpful.

It’s essential.

At Hammond & Co, we’re known for being proactive, not reactive. We work closely with our construction clients at Month-9 to forecast tax liabilities, uncover savings, and eliminate nasty surprises.

This guide explains why Month-9 reviews matter, what they involve, and how they transform the way construction firms manage their finances.

Why Construction Businesses Face Unique Tax Challenges

Construction companies don’t operate like typical businesses. Income doesn’t drip in steadily — it arrives in irregular bursts, often long after the costs have been incurred.

This creates several tax-planning challenges:

Retention payments

Clients may hold back 5–10% of project value for months or even years. On paper, you’ve earned the income. In reality, you don’t yet have the cash.
HMRC, however, still expects tax based on accounting profit — not when you’re actually paid.

Subcontractor payments (CIS)

CIS deductions complicate cash flow further. Contractors may deduct tax from your payments, leaving you with less cash but still facing liabilities. Correct reconciliation is critical to avoid over- or underpayment.

Irregular project flow

One month may bring a large contract, followed by periods of little revenue. No two years look the same, making traditional tax averages ineffective.

Capital-intensive expenditure

Construction firms rely heavily on equipment, vehicles, and tools. Without planning, you may miss opportunities to claim capital allowances at the right time.

Director remuneration

Many directors are paid through a combination of salary and dividends. Optimising this balance can significantly reduce tax — but only with forward planning.

Month-9 reviews allow construction companies to take control early — rather than reacting when it’s too late.

What Is Month-9 Tax Planning?

Month-9 tax planning is a structured mid-year review carried out after nine months of trading. The purpose is simple:

• Review performance to date
  
• Forecast the final quarter
  
• Predict year-end profit and tax
  
• Identify opportunities to reduce the bill
  

It gives construction businesses:

Visibility

A clear picture of your likely corporation tax bill — long before it’s due.

 

Time to act

With three months still remaining, there’s scope to make meaningful adjustments.

Peace of mind

No surprises. No last-minute panic. No scrambling for cash.

A Month-9 review typically includes:

• Reviewing up-to-date management accounts
  
• Forecasting income and costs for the remaining quarter
  
• Calculating projected taxable profits
  
• Identifying tax-saving opportunities (capital purchases, pensions, R&D, etc.)
  
• Optimising salary and dividend planning
  
• Reviewing VAT, PAYE, and CIS to ensure everything is reconciled correctly
  

At Hammond & Co, we explain everything in clear, straightforward language. We don’t just present a number — we provide a practical action plan.

The Benefits of Month-9 Planning for Construction Firms

1. Improved cash flow management

Construction firms depend heavily on healthy cash flow. Knowing your likely tax bill in advance helps you set aside funds gradually instead of struggling at year-end.

2. Real tax-saving opportunities

Many tax-efficient strategies must be implemented before the year ends.
Month-9 gives you time to act.

3. No more surprise tax bills

For an industry already dealing with unpredictable payment cycles, certainty is invaluable.

4. Stronger decision-making

Considering new equipment? Expanding your workforce? planning a new project?
Accurate forecasts give you the confidence to make informed decisions.

5. Optimised director remuneration

Adjusting the salary/dividend mix at the right time can reduce tax significantly — but only if done before year-end.

6. Fewer HMRC complications

With VAT, CIS, and PAYE reconciled early, you stay compliant and in control.
In short: Month-9 planning isn’t just about tax — it’s about running your construction business with confidence.

Month-9 in Action: A Practical Example

Let’s take “BuildRight Ltd” (fictional example), a company with a March year-end.
In December — Month-9 — we review their figures.

• Profit so far: £120,000
  
• Projected year-end profit: £160,000
  
• Estimated corporation tax: £40,000
  

The director hadn’t set aside enough cash. But thanks to the Month-9 review, there’s still time to prepare.
We also identify:

• A new van purchase qualifying for capital allowances — reducing tax by £3,000
  
• Adjustments to salary/dividend structure — saving £2,000
  
• R&D activity relating to innovative insulation work — claim worth £10,000
  

Outcome?

• Projected tax bill drops from £40,000 to £25,000
  
• The director has three months to plan cash flow properly
  

This is the difference Month-9 makes.

Tax Reliefs and Strategies to Consider at Month-9

During Month-9 reviews, Hammond & Co helps construction clients explore key tax-saving areas:

Capital allowances

Buying equipment, vehicles, or tools before year-end can reduce taxable profit.

R&D tax relief

Construction firms often innovate without realising their work qualifies for R&D relief. Claims can be significant.

Pension contributions

Company pension contributions are tax-deductible and a powerful planning tool.

Loss relief planning

If it’s been a challenging year, losses may be carried back or forward to reduce tax.

Bad debt provisions

Slow-paying clients are common. Provisions for irrecoverable debts can reduce taxable profit.

Director remuneration

Month-9 is the perfect time to adjust salary/dividend splits.

VAT & CIS reconciliations

Ensures accuracy, avoids surprises, and keeps HMRC happy.

Every construction business is different — but Month-9 gives them all time to make smart, strategic decisions.

Case Study: Month-9 Saving Thousands

“GreenBuild Contractors” (fictional) had never completed a Month-9 review. Every year, they waited until accounts were finalised — and every year, they faced a tax bill they couldn’t change.

During their first Month-9 review with Hammond & Co, we identified:

• A potential tax bill of £50,000
  
• R&D relief worth £15,000
  
• Director remuneration tweaks saving £3,000
  
• Pre-year-end equipment purchases saving £2,500
  

Final projected liability: £29,500

 Savings: £20,500

 Preparation time: four months

For the first time, the director felt in control — not caught off guard.

Why Hammond & Co Is the Right Partner for Month-9 Planning

Not all accountants offer proactive Month-9 reviews. Many focus solely on compliance — filing accounts once the year is over, when it’s too late to make changes.

At Hammond & Co, Month-9 planning is built into our service for construction clients.

Our approach is:

Proactive

We schedule Month-9 reviews automatically.

Industry-focused

We understand construction’s unique cash flow cycle, CIS requirements, and project-based challenges.

Technology-driven

We use digital bookkeeping and forecasting tools to give real-time clarity.

Straightforward

Clear, practical advice — no jargon.

Results-driven

Our clients regularly save thousands through timely action.

Construction directors often tell us they sleep better at night after Month-9.

That’s the peace of mind we aim to deliver.

Checklist: Preparing for Your Month-9 Review

To get the most from your review, ensure:

✔️ Bookkeeping is fully up to date
✔️ CIS records are accurate and reconciled
✔️ Payroll is processed correctly
✔️ Forecasts for projects finishing soon are available
✔️ Planned equipment purchases or withdrawals are noted

The cleaner your data, the better the forecast.

Conclusion & Call to Action

For construction businesses, tax shouldn’t be a guessing game.

With retention payments, subcontractor costs, equipment purchases, and irregular income, the last thing you need is a surprise tax bill.

Month-9 tax planning gives you clarity, time, and control.

It turns tax from a shock into a strategy.

At Hammond & Co, we specialise in supporting construction firms through Month-9 and beyond — helping you forecast, plan, and take action while it still counts.

The result?

Lower tax. Stronger cash flow. Greater confidence.

Ready to take control of your tax planning?

Contact Hammond & Co today to book your Month-9 review and transform the way you manage your finances.