The end of the tax year has a habit of arriving faster than expected. One minute, it’s January. Then, before you know it, 5 April is just around the corner. If you run a small business, this time of year is worth paying attention to, not because it needs to be stressful, but because a little preparation now can save you a lot of hassle (and potentially a fair amount of money) later.
Work through this checklist, and you’ll head into the new tax year feeling organised, informed and ahead of the game.
Get your records straight
This one sounds obvious, but it’s where a lot of business owners come unstuck. During a busy year, bookkeeping can slip down the priority list. Receipts go missing. Invoices don’t get chased. And bank transactions sit unreconciled for weeks.
Before 5 April, set aside some time to go through your records properly. Make sure your income is accurately recorded, your expenses are logged and everything ties back to your bank statements. If you use cloud accounting software like Xero or QuickBooks, this process is much more straightforward, but it still needs to be done.
If you’ve got a backlog, don’t put it off any longer. Getting your records in order now means your accountant can work with clean, accurate numbers, and that benefits everyone.
Review what you can claim
This is one of the most valuable things you can do before the tax year closes, because it’s where real savings are made. Many small business owners pay more tax than they need to, simply because they don’t claim everything they’re entitled to.
Take a look at your allowable business expenses for the year. These include things like office costs, travel, professional subscriptions, training, marketing and, if you work from home, a proportion of your household bills. If you use a vehicle for work, make sure you’ve recorded your business mileage accurately throughout the year.
It’s also worth looking at any equipment or assets you’ve purchased during the year. The Annual Investment Allowance lets most businesses deduct the full cost of qualifying equipment from their profits in the year of purchase, rather than spreading the relief over several years. If you’ve bought machinery, computers or any other business assets, this could make a meaningful difference to your tax bill.
If you’re unsure what you can and can’t claim, that’s exactly the kind of question we’re here to answer.
Check your pension contributions
If you’re a sole trader or the director of your own limited company, pension contributions are one of the most tax-efficient things you can do before the year-end.
Contributions made before 5 April can reduce your taxable income for the current tax year. For higher earners, the relief can be significant. It’s worth checking what you’ve contributed so far and whether there’s scope to top it up before the deadline.
This isn’t the place for a full pension guide. That’s a conversation worth having with a financial adviser. But it is worth making sure it’s on your radar before the year closes.
Use your allowances before they reset
Several key allowances reset on 6 April each year, and any unused portion disappears. Once the new tax year starts, you can’t go back.
Here are the main ones to think about:
- ISA allowance – you can save up to £20,000 per year into an ISA, free of income tax and capital gains tax. If you haven’t used your full allowance, you have until 5 April to do so.
- Dividend allowance – if you receive dividend income, you have an annual allowance before dividend tax kicks in. Check where you stand.
- Capital gains tax annual exempt amount – if you’re planning to sell an asset, timing can make a difference to how much tax you pay.
- Personal savings allowance – basic rate taxpayers can receive up to £1,000 in savings interest tax-free each year.
None of these require complicated planning. They just require acting before the deadline.
Think about your tax position now, not in January
One of the most common mistakes small business owners make is leaving any thought of their tax bill until they’re staring down the barrel of the self-assessment deadline in January. By that point, the tax year is already nine months behind you, and your options are limited.
Getting a sense of your likely tax position now, while you’re still in the tax year, gives you time to plan. You might be able to bring forward certain expenditure, make additional pension contributions or adjust your dividend strategy if you’re a company director. You can also plan your cash flow more effectively if you have a realistic picture of what’s coming.
If you pay self-assessment and you’re subject to payments on account, it’s worth getting ahead of this. Payments on account are based on your previous year’s tax bill and can sometimes catch people off guard. Knowing what to expect, and when, takes the sting out of it.
Directors and dividends: a quick sense check
If you run a limited company and pay yourself a combination of salary and dividends, it’s worth pausing before the year-end to check that your approach is still working efficiently.
Have you used your dividend allowance for the year?
Is the split between salary and dividends still the most tax-efficient arrangement given your income level?
These are straightforward questions, but the answers can make a real difference to your personal tax position. If you’re not sure, your accountant can run through the numbers with you quickly.
Don’t forget Gift Aid and charitable giving
A short one, but worth flagging. If you’ve made any charitable donations during the year and you’re a taxpayer, Gift Aid means the charity can reclaim basic rate tax on your donation. And if you’re a higher-rate taxpayer, you can claim additional relief through your self-assessment return.
Donations made before 5 April count towards this tax year. It’s a small thing, but it’s one that often gets overlooked.
How can Buckler Spencer help?
There’s a lot to think about at this time of year, but you don’t have to work through it on your own.
At Buckler Spencer, we’ve been helping small businesses and individuals in Swadlincote, South Derbyshire, and beyond get their finances in order for more than 50 years. A pre-year-end review with one of our team is a great way to make sure you’re not missing anything, and that you’re heading into 2026/27 with a clear picture of where you stand.
We can help with everything from reviewing your expenses and allowances, to advising on the most tax-efficient way to pay yourself, and getting your self-assessment filed accurately and on time.
If you’d like to have a conversation before 5 April, get in touch with the team. We’re here to make this straightforward.