Yes. Assuming you had a calendar year-end, which I'm sure was the case in your example, then for that year, the first year, you'd be taxed on your work in progress that accrued up to the end of the year. You wouldn't have to send out two invoices to the client, but the amount you earned, the amount of income that accrued to you in the first year, and the costs, would be taxable in the first year.
On November 2nd, 2017. See this statement in context.