Getting Ready for Year-End: A Building Contractor's Checklist

Year-end doesn't have to be a shoebox-and-panic job. A bit of preparation makes the whole thing smoother, means fewer questions flying back and forth, and, the part most contractors miss, often leaves you with a lower tax bill, because nothing claimable slips through the cracks.

Here's a straightforward checklist to get ready, plus the single most valuable habit of all: reviewing things before the year actually closes.

Your year-end checklist

• Get your bookkeeping up to date and reconciledEverything entered, coded, and matched to the bank. This is the foundation, if the books are behind, everything else is guesswork.
• Record everything you're owedUnpaid invoices, applications for payment and retentions all need to be captured. It's easy to forget money that hasn't landed yet. Don't let retentions slip through →
• Capture every allowable costReceipts, mileage, tools, materials, PPE, phone, use of home, subsistence, a lost receipt is lost tax relief. Round up anything that's been paid personally or is still sitting in the van.
• Value your work in progressWork you've done but not yet invoiced, and materials on site, need valuing at the year-end date. Getting WIP right stops your accounts flattering or punishing you unfairly.
• Reconcile your CISDeductions suffered and deductions made both need to tie up, so every credit you're due is actually claimed and nothing's double-counted. More on getting CIS right →
• Note anything unusualAsset purchases, a vehicle, big one-off costs, changes in the business, flag them so they're treated correctly.
• Get your records to your accountant earlyThe sooner they have everything, the more time there is to spot savings and plan, rather than just rushing to file.

The bit that actually saves you money

Most people think of year-end as something you deal with after the year has finished. But the valuable work happens in the weeks before it. That's when there's still time to act, to bring forward a planned equipment purchase, make a pension contribution, or time a decision so it falls in the most efficient year. Once the clock ticks over, most of those options are gone. A quick pre-year-end review with your accountant is one of the highest-return hours you'll spend all year.

This article is general guidance for building contractors, not advice for your specific situation. What's allowable and how to plan depends on your circumstances, always check with your accountant before acting.