Get Ahead Before It’s Too Late: Why Pre-Year-End Planning Matters
Every year, we get the same call:
“Our accountant’s just finished the accounts, and our tax bill’s huge. What can we do to reduce it?”
It’s a common story in the construction world. But here’s the truth — if your year-end has already passed, your numbers are locked in. The opportunity to meaningfully improve your tax position has gone.
That’s why pre-year-end planning is one of the most valuable steps any construction business can take.
It’s your chance to get ahead of the numbers — not be trapped by them.
What Is Pre-Year-End Planning?
In short: Pre-year-end planning is reviewing your business finances before your accounting year closes — ideally 1–2 months before — so you can make strategic moves to reduce tax, improve cashflow, and strengthen profits.
Think of it like surveying a project before you pour the concrete. Once it’s set, there’s no easy way to fix what’s underneath.
At Thomas Emlyn Ltd, we call this your pre-year-end review — a focused financial check-in that aligns your numbers with your goals.
Why Most Construction Firms Miss the Window
Construction businesses are fast-paced, project-driven, and often juggling multiple deadlines.
It’s easy to focus on getting jobs done — and assume the financial side will sort itself out later.
But by the time you’re seven months past year-end:
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Accounts are finalised
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Tax bills are fixed
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And the HMRC clock is ticking
You’ve lost the chance to influence your results.
Instead of planning, you’re reacting — paying more tax than you need to and missing opportunities for smarter growth.
When Should You Start Pre-Year-End Planning?
The ideal time is one to two months before your year-end — when your books are up to date, and there’s still time to make adjustments.
For example:
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If your year-end is 31 December, your review should happen in November.
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If your year-end is 31 March, plan your review for February.
This gives enough time to review your figures, implement decisions, and document everything before the cut-off.
What You Can Achieve with Pre-Year-End Planning
Pre-year-end planning isn’t just about tax. It’s about taking control of your business story — before HMRC and your accountant write it for you.
Here’s what a well-structured review covers:
✅ 1. Review Profits and Estimate Your Tax Bill Early
We project your profit and corporation tax for the year — months before the deadline.
This gives you time to:
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Budget for tax in advance
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Avoid cashflow shocks
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Identify legitimate reliefs or deductions still available
Example: A contractor with £400,000 profit had time to make a £40,000 pension contribution before year-end — saving over £7,600 in tax.
✅ 2. Adjust Dividends and Directors’ Pay Efficiently
We align salary and dividend levels to optimise your tax position.
Too high a dividend, and you’ll pay unnecessary income tax. Too low, and you might miss allowances.
Pre-year-end is the perfect time to rebalance — while you can still make it count.
✅ 3. Bring Forward Key Purchases or Pension Contributions
Sometimes timing is everything.
Bringing forward legitimate expenses — like new equipment, vehicles, or pension payments — can reduce this year’s taxable profits and prepare you for growth.
Just make sure purchases are commercially justified — not just “for tax.”
That’s where strategic advice makes all the difference.
✅ 4. Revisit Margins, Cashflow, and Project Profitability
Profit on paper isn’t the same as cash in the bank.
We use your year-end window to:
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Analyse which projects made (or lost) money
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Review your cashflow forecast
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Identify pricing or margin improvements for next year
This isn’t tax compliance — it’s business strategy.
As one client said,
“That meeting saved me more than it cost in tax — but it also gave me clarity on where my next 10% margin will come from.”
✅ 5. Plan for Growth – Not Just Compliance
The best time to think about growth is before the financial year ends.
Your pre-year-end review helps you:
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Assess whether you can afford to hire or invest
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Evaluate your capital structure
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Align upcoming tenders or contracts with a clear cashflow strategy
It’s not just about paying less tax — it’s about building a stronger next year.
The Cost of Waiting Too Long
Waiting until your accountant finishes the year-end accounts can be an expensive habit.
By then:
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Dividend and pension deadlines are gone
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Expenses can’t be moved
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And your cash position is already affected
You might still find small wins, but the big opportunities are gone.
Proactive planning is what separates firms that control their cash from those that chase it.
How Thomas Emlyn Ltd Helps Construction Companies Plan Ahead
We specialise in helping construction companies across the UK move from reactive to strategic finance.
Our Virtual Finance Office (VFO) service includes:
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Regular pre-year-end reviews
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Forecasting tools that highlight tax and cashflow issues early
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Guidance on margins, growth, and director pay
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Direct coordination with your accountant to execute changes before deadlines
Whether you’re a £500k builder or a £5m contractor, pre-year-end planning is your simplest way to protect profits and avoid financial surprises.
Real Example: A £12,000 Tax Saving in 90 Minutes
A client in Essex came to us in February — their year-end was 31 March.
We reviewed their accounts early and spotted:
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£30,000 available for a director’s pension contribution
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Equipment purchases already planned for April
We brought both into the current year, reducing taxable profit and saving £12,000 in corporation tax.
If they’d waited until June, that opportunity would have been gone.
FAQs: Pre-Year-End Planning for Construction Businesses
1. Is pre-year-end planning only for large companies?
No — even small contractors benefit. A £50,000 profit can still mean a £9,500 tax bill. Planning helps you manage and reduce that.
2. Can my accountant do this automatically?
Not always. Many accountants focus on compliance — not strategy.
At Thomas Emlyn Ltd, we build pre-year-end reviews into your finance cycle, so planning becomes a habit, not an afterthought.
3. What’s the difference between a pre-year-end review and year-end accounts?
Year-end accounts report what happened.
A pre-year-end review influences what happens — before the year closes.
4. When should I book mine?
Ideally 4–8 weeks before your company year-end. That gives time to make decisions and take action before it’s too late.
Take Control Before It’s Too Late
Pre-year-end planning isn’t just about saving tax — it’s about taking control of your business story.
A few proactive decisions today could save thousands later and set you up for a stronger, more profitable year ahead.
If your company year-end is approaching, now’s the time to act.
Book a discovery call here.
Thomas Emlyn Ltd
Stronger Margins – Healthier Cashflow – Sustainable Growth
