1. Introduction – What We See Every Week
At Hammond & Co, we work with plumbing and heating engineers every single week. From sole traders running a one-man van to growing businesses completing multiple boiler installations a day, we’ve seen every type of trade business—and every type of bookkeeping system imaginable.
We’ve worked with engineers who run immaculate records through modern software, and others whose entire accounting system lives in a van glovebox full of receipts. We’ve seen the stress when unexpected tax bills arrive, the frustration caused by VAT errors, and the relief when CIS is finally explained in plain English.
One thing is clear: plumbing and heating engineers deserve better accounting support than many are currently receiving.
2. The Problem – Generic Accountants Don’t Understand the Trade
We hear the same stories time and again:
- “My accountant never mentioned CIS.”
- “I didn’t know I could claim for that.”
- “I only heard from them once a year when the tax bill landed.”
Generic accountants may be perfectly capable—but if they don’t understand how your trade works day to day, they can’t give the right advice at the right time.
In our experience, generalist accountants often struggle in three key areas for plumbers and heating engineers:
- CIS compliance and rebates – incorrect deductions, missed refunds, or late submissions
- VAT schemes – engineers losing thousands by being on the wrong scheme or misunderstanding reverse charge VAT
- Job-specific expenses – mileage, tools, van costs, servicing kits, and signage often overlooked
If your accountant doesn’t understand why fuel costs spike in winter or how merchant credit accounts affect cash flow, your business is already at a disadvantage.
3. What Makes Plumbing & Heating Accounting Different
Your trade has challenges that most office-based businesses never face:
- Seasonal income swings – winter boiler rushes and quieter summer months
- High upfront material costs before jobs are paid
- Mixed labour models – employees, subcontractors, and apprentices
- Warranty work and call-backs affecting profit and cash flow
- Emergency call-outs with unpredictable invoicing
At Hammond & Co, every accounting system we build for trade clients is designed around these realities. We focus on how money actually moves through your business—not how it looks on paper.
4. CIS – The Most Common Headache We Fix
CIS (Construction Industry Scheme) causes more problems for plumbers and heating engineers than almost anything else.
We regularly help clients who have:
- Been deducted at 30% instead of 20% due to incorrect verification
- Missed out on thousands of pounds in CIS rebates
- Incurred penalties from late CIS returns
- Confused PAYE and CIS when paying subcontractors
When a new plumbing or heating client joins Hammond & Co, one of the first things we do is review their CIS position. In many cases, HMRC is holding money that should already be back in the client’s pocket.
We manage registrations, verifications, monthly submissions, and year-end reconciliations—so you can focus on the job, not the paperwork.
5. VAT – One Rule Never Fits All
VAT is another area where one-size-fits-all advice simply doesn’t work.
For some engineers, the Flat Rate Scheme simplifies admin. For others, the Standard Scheme saves significant tax as turnover grows. Then there’s Domestic Reverse Charge VAT, which changes how invoices must be raised between contractors and subcontractors.
We help engineers move between schemes at the right time—avoiding overpayments, errors, and unwanted attention from HMRC.
Our approach is simple: pay what you owe, no more and no less.
6. “My Tax Bill Shouldn’t Be a Surprise” – Our Month-9 Planning Approach
At Hammond & Co, we believe no client should ever be shocked by a tax bill.
That’s why we carry out Month-9 Tax Planning. Around the ninth month of your financial year, we forecast:
- Profit to date
- Expected results for the remaining months
- The tax position—and what can be done to reduce it
For plumbing and heating engineers, this timing is ideal. It’s often after the winter rush and before year-end deadlines, giving time to adjust wages, make pension contributions, or invest in tools or vehicles.
This is proactive planning—not last-minute panic.
7. Incorporation – Knowing When Going Limited Makes Sense
A common question we’re asked is: “Should I go limited?”
The honest answer is: it depends—but we’ll help you make the right decision at the right time.
Going limited can:
- Protect personal assets
- Improve credibility with contractors and suppliers
- Create more tax-planning flexibility
But it must be done properly. CIS, VAT, payroll, and records all need to align.
We handle the entire process, ensuring a smooth transition without costly mistakes.
8. Technology – Making the Paperwork Disappear
Modern accounting software means paperwork no longer needs to take over your evenings.
We help trade clients set up a streamlined digital system using:
- Xero for accounts, VAT, and CIS
- Dext or Hubdoc for instant receipt capture
- SmartVault for secure document storage
- BrightPay for straightforward payroll
Everything is accessible from your phone or tablet—even from the van. We provide setup, training, and ongoing support so technology works for you, not against you.
9. Case Study – A Heating Engineer Who Got His Evenings Back
One of our clients, a heating engineer, came to us completely overwhelmed. Every Sunday night was spent catching up on paperwork, with no idea what his tax position looked like.
We introduced digital bookkeeping, reviewed his VAT scheme, and carried out Month-9 planning. Within three months, he:
- Reclaimed a four-figure CIS rebate
- Saved thousands through VAT adjustments
- Stopped losing weekends to bookkeeping
His feedback summed it up perfectly:
“I finally feel in control of the business instead of the other way around.”
That’s what good accounting should do.
10. What “Better Accounting Support” Really Means
For us, better support isn’t about complicated spreadsheets or jargon-filled reports. It means:
- Proactive contact before problems arise
- Clear, plain-English explanations
- Trade-specific advice based on real experience
- A genuine partnership, not a once-a-year service
We know plumbing and heating businesses are built on trust and reputation. We run our accounting service the same way.
11. Why Engineers Stay With Hammond & Co
Once plumbing and heating engineers work with Hammond & Co, they tend to stay. That’s because:
- We understand the trade—not just the numbers
- CIS, VAT, payroll, and tax planning are fully joined up
- We help clients plan ahead, not panic
- We’re approachable and easy to contact
Most importantly, we care about the businesses we support.
12. Looking Ahead – Protecting the Future of Your Business
Good accounting isn’t just about this year’s tax return. It’s about building a business that supports your long-term goals—whether that’s growth, more time off, or eventual exit planning.
We help clients plan for:
- Apprentices and staff expansion
- Van and equipment upgrades
- Pension contributions
- Succession or sale planning
Because earning more only matters if you keep more and stress less.
13. Why We Do What We Do
Every time we help an engineer reclaim tax, fix a financial leak, or gain clarity over their numbers, we’re reminded why Hammond & Co exists.
We’ve seen the stress caused by uncertainty—and the confidence that comes with clarity. Every tradesperson deserves that confidence.
If you’ve ever felt like your accountant doesn’t really understand your business, it may be time for something different.
14. Let’s Talk – Accounting That Works for You
If you’re a plumbing or heating engineer looking for clarity, protection, and proactive advice, we’d love to help.
📞 Call: 01246 563414
📧 Email: admin@hammondbusiness.co.uk
🌐 Visit:https://www.hammondbusiness.co.uk
Let’s move away from year-end panic and build a smarter, smoother way to run your trade business—with Hammond & Co by your side.