October Planning Window · 2026/27
October Tax Planning: 5 Moves CIS Subcontractors Should Make Before Year End
October is the last month where tax planning feels like a choice, not a crisis. By January you're reacting; by October you're still in control. Here's how to use that control before it slips away.
The decisions that affect your tax bill — pension contributions, expense claims, Gross Payment Status applications — mostly have to happen before 5 April. But October is the sweet spot: far enough from April that you have a clear picture of how the year is tracking, and far enough from January that you still have time to do something about it.
The five moves below apply to every October in every tax year. Whether you're reading this in October 2026 or October 2027: the tax year always ends on 5 April, the Self Assessment deadline is always 31 January, and October is always the last realistic window to make meaningful changes without the pressure of an imminent deadline.
Most tax planning articles tell you to act before April. That's true — but October is when you can still act without pressure. By December and January, cash flow is tight, accountants are busy, and the decisions feel urgent. In October, they're just decisions.
January is when people panic about their tax bill. October is when they could have done something about it. The window is the same size — the pressure is completely different.
CIS Tax Insights · 20265 Moves Worth Making Before November
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1Work Out Where Your Income Is Tracking This Year
Add up your gross CIS earnings from April to now and project forward to April based on your current workload. This tells you roughly what your taxable profit will be — and therefore whether you're likely to have a refund, a balancing payment, or a Payment on Account surprise in January.
Key threshold: If you're approaching £50,270 (the higher-rate threshold for 2026/27), every extra pound above that is taxed at 40% — which makes pension contributions (Move 2) significantly more valuable.
✅ Do this now: Open your bank statements and total your gross CIS earnings from 6 April to today. That's your starting number for everything else on this list. -
2Make a SIPP Contribution Before the Year Closes
If part of your income is falling in the 40% higher-rate band, a pension contribution made before 5 April reduces your Adjusted Net Income — potentially bringing you back below the threshold and saving you 40% tax on that portion. Even basic-rate taxpayers get the automatic 20% government top-up on every contribution.
Annual limit: The Annual Allowance for 2026/27 is £60,000. Check your SIPP provider's app to see how much allowance you have left before you contribute — exceeding it can trigger a tax charge.
✅ Do this now: Check your SIPP provider's app for your remaining Annual Allowance and consider a lump sum before 5 April. Speak to your accountant about the right amount for your income level. -
3Review Your Outstanding Business Expenses
Any tool purchase, equipment upgrade, or large material cost you're planning should happen before 5 April — not after — so it counts in this tax year's return. October is when you can still make those purchases without rushing.
Capital Allowances: For expensive tools or a new van, you can claim the full cost against your taxable profit in the year you buy them under the Annual Investment Allowance (AIA). The AIA limit for 2026/27 is £1 million — so the tax relief is immediate, not spread over several years.
✅ Do this now: List any tools or equipment you've been putting off buying. If the total is over £1,000, run it past your accountant to confirm AIA eligibility and timing. -
4Apply for Gross Payment Status If You Qualify
Gross Payment Status means contractors pay you in full — no CIS deduction at all. To qualify, your CIS turnover needs to exceed £30,000 per year (for sole traders), and you need a clean compliance history: all returns filed on time, no missed payments to HMRC over the last 12 months.
Processing typically takes 4–8 weeks. An application in October gives HMRC time to process it before the new tax year starts in April — meaning you could begin 2027/28 with 0% deductions rather than 20%.
✅ Do this now: Log into Government Gateway and check your tax history. If it's spotless and your CIS turnover is over £30,000, apply for Gross Payment Status today. -
5Book Your Accountant for January Now — Not in December
This one is practical rather than strategic, but it's consistently the difference between a well-prepared return and a rushed one. Accountants are significantly busier in December and January — some are fully booked by mid-November. If you haven't already confirmed your January appointment, do it now.
Send your accountant a preliminary summary: rough earnings figure, major expense categories, any changes in your business structure, and whether you made any pension contributions. Starting the conversation in October gives them time to flag anything they need from you before the deadline.
✅ Do this now: Send a quick email to your accountant with your year-to-date earnings and a brief list of any major expenses or changes since April.
What These Five Moves Are Worth in Practice
Here's a realistic picture for a subcontractor tracking toward £45,000 gross this year, with typical expenses — comparing no planning against a straightforward October review.
| Gross CIS earnings | £45,000 |
| Typical allowable expenses (tools, fuel, PPE, insurance) | −£7,000 |
| Net taxable profit without planning | £38,000 |
| SIPP contribution made in October (reduces taxable profit) | −£3,000 |
| Additional tool purchase brought forward to this tax year (AIA) | −£800 |
| Revised taxable profit after planning | £34,200 |
| Approximate tax saving from two simple October moves | ~£760 |
£760 from a pension contribution and one brought-forward tool purchase. Neither required complicated planning. Both required knowing where the year was tracking and acting before the window closed.
If you wait until January to think about these five moves, the decisions will feel rushed, the paperwork will be harder to find, and the money you could have saved will simply end up with HMRC instead of in your pocket. October is the month of choice. January is the month of consequences.
Frequently Asked Questions
Is it too late to make a SIPP contribution in October for this tax year?
Not at all — you have until 5 April to make contributions that count for the current tax year. October gives you plenty of time. The key is knowing roughly what your annual earnings will be so you can calculate an appropriate amount. Speak to your accountant about the right figure, particularly if any of your income falls in the 40% band.
How do I know if I qualify for Gross Payment Status?
The main requirements are that your CIS turnover exceeds £30,000 per year (for sole traders), you've filed all tax returns on time, and you have no history of missed or late payments to HMRC over the previous 12 months. Your accountant can check your record and tell you whether an application is likely to succeed before you submit one.
Can I claim for tools or equipment I buy in October as a business expense?
Yes — any business purchase made between 6 April and 5 April of the current tax year counts as an expense for that year's return. Under the Annual Investment Allowance, you can deduct the full cost of most plant and machinery (including vans and tools) from your taxable profit in the year you buy them, rather than spreading it over several years.
What if my earnings are lower this year than last — should I reduce my Payment on Account?
If your income is tracking significantly below last year, it's worth reducing your January Payment on Account to reflect your expected lower liability. This is done through Government Gateway before the 31 January deadline. October is a good time to review this because you have six months of actual data to base your estimate on. Be realistic rather than optimistic — if you underestimate and end up owing more, you'll pay interest on the shortfall.
People Also Ask
What tax planning should CIS subcontractors do before year end?
Before 5 April, CIS subcontractors should: review their year-to-date earnings and project the full year figure; make any planned SIPP pension contributions; bring forward planned tool or equipment purchases to count in the current tax year; check eligibility for Gross Payment Status; and book their accountant for January before the December rush. October is the last realistic window to make these decisions without deadline pressure.
Can a CIS subcontractor make a pension contribution before 5 April?
Yes — SIPP contributions made before 5 April count toward the current tax year and reduce your Adjusted Net Income. This can reduce your tax bill, potentially bring you below the higher-rate threshold, and attract the government's 20% tax top-up on every contribution. The Annual Allowance for 2026/27 is £60,000 — contributions above this limit can trigger a tax charge.
How do I qualify for Gross Payment Status as a CIS subcontractor?
To qualify for Gross Payment Status, your CIS turnover must exceed £30,000 per year for sole traders, you must have filed all tax returns on time, and have no history of missed or late payments to HMRC over the previous 12 months. Applications typically take 4–8 weeks to process — applying in October gives HMRC time to approve it before the new tax year starts in April.
Can I claim for tools bought in October as a CIS business expense?
Yes — any tool, equipment, or business purchase made between 6 April and 5 April counts as an expense for that tax year's return. Under the Annual Investment Allowance, you can deduct the full cost of most plant and equipment from your taxable profit in the year you buy it. Bringing a planned purchase forward to before 5 April means it reduces this year's tax bill rather than next year's.
Six Months Left. Use Them.
October is the month where tax planning is still easy. The decisions aren't urgent, the deadlines aren't close, and the outcomes are still genuinely flexible. By December those same decisions will feel pressured. By January they'll be too late for this tax year entirely.
Work out where your income is tracking. Think about a pension contribution if it makes sense. Bring forward any planned business purchases. Check your Gross Payment Status eligibility. Book your accountant now rather than in December. None of these things take long — and collectively, they can make a meaningful difference to what you owe in January.
QuoteDone Tools
Know Your Numbers Before You Plan.
Check what HMRC has already deducted from your CIS payments this year — so you know exactly where you stand before making any of the five moves above.
This article is for informational purposes only and does not constitute formal accounting, legal, or financial advice. Tax planning decisions depend on individual circumstances including income, expenses, and compliance history. Always consult a qualified accountant before making pension contributions or applying for Gross Payment Status. Figures are illustrative and based on 2026/27 HMRC guidance.