Top 10 Tax Planning Tips for Businesses Before Year-End

As a Chartered Certified Accountant, I've helped businesses navigate their year-end finances for years, and trust me—getting ahead of the game makes all the difference. Whether you've smashed your targets or faced a few bumps along the way, now is the perfect time to take stock and make smart moves before the financial year closes.

Tax planning isn’t just about trimming your tax bill (though that’s always a bonus!); it’s about making sure your hard-earned money is working for you, not HMRC. So, before 31st March sneaks up on us, here are ten things you should be thinking about:

1. Are Your Books in a Mess? Let’s Fix That.

Nobody enjoys a last-minute panic to find missing receipts, but keeping your books up to date isn’t just about avoiding stress—it helps you make better business decisions. Clear records = clear thinking. Plus, it means you’re less likely to overpay tax or miss out on deductions. If bookkeeping isn’t your thing, now’s the time to outsource it (I know a great accountant who can help 😉).

2. Chase Those Pesky Late Payers

Cash flow is king! If clients owe you money, now’s the time to politely (but firmly) remind them to settle up before year-end. If you’ve got old invoices that won’t be paid, writing them off now means you won’t end up paying tax on income you never received. Smart, right?

3. Get Your Head Around Making Tax Digital (MTD)

From April 2026, MTD is rolling out for more businesses, and let’s be honest, spreadsheets and paper receipts just won’t cut it anymore. If you haven’t switched to digital accounting software, now’s the perfect time. Not only will it keep you compliant, but it’ll make your life so much easier (trust me on this one!).

4. Claim Everything You’re Entitled To

Business expenses aren’t just there to make your accountant happy; they reduce your taxable profit. From office supplies to staff costs, marketing, and even some home-working expenses—every little helps. Don’t forget charitable donations too; if you’ve given back this year, you could get some tax relief on that generosity.

5. Use Your Business to Boost Your Pension

Want to be tax-efficient and invest in your future? A company pension contribution could be the answer. It’s deductible against your corporation tax bill and helps secure your retirement at the same time. Win-win! If you’ve had a strong year, it’s a great way to put those extra profits to good use.

6. Dividends: The Tax-Efficient Sweet Spot

If you run a limited company, taking dividends rather than salary can be a tax-savvy move. But the tax-free dividend allowance keeps shrinking, so if you’re planning to take dividends, now’s the time to review your options. You can’t just take dividends willy-nilly, though—there needs to be enough profit in the business. If you're unsure, give me a shout.

7. Thinking of Upgrading Equipment? Do It Now.

If you've been eyeing up a new laptop, van, or piece of machinery, now might be the time to go for it. Some purchases qualify for capital allowances, meaning you can deduct the cost from your taxable profits. It’s basically HMRC giving you a discount—why not take it?

8. VAT: Register, Deregister, or Just Check You’re on the Best Scheme

VAT can be a tricky beast. If you’re close to the £90,000 turnover threshold, you might need to register. If your income has dropped, deregistering could make sense. And if you’re already VAT-registered, are you on the best scheme? Now’s the time to review.

9. Speak to a Proper Accountant (That’s Me!)

Sure, you could wait until after year-end to think about tax planning, but by then, you’ve missed your chance to make smart moves. A quick chat with me before the 31st March deadline could save you money and stress. Unlike generic accountants who just crunch numbers, I help business owners make better financial decisions—so let’s talk!

10. Plan for the Year Ahead

Once you’ve ticked off this year’s tax planning, don’t stop there. The best businesses don’t just react; they plan ahead. What’s your growth strategy? Could you be more tax-efficient next year? Let’s make a plan so you’re not scrambling next March.

Final Thoughts

Tax planning doesn’t have to be boring, and it certainly doesn’t have to be stressful. With a little forward-thinking (and the right accountant in your corner), you can save money, make smarter financial decisions, and enter the new financial year with confidence.

Need help? Let’s chat. Drop me a message, give me a call, or book a time to go over your numbers before it’s too late. Your future self (and your bank balance) will thank you! 😉

Best Wishes,

Charlotte

Charlotte Derbyshire, FCCA

Chartered Certified Accountant

Founder & CEO of Derbyshire Accountants

Derbyshire Accountants Ltd

📞 01256 591 196

📩 charlotte@derbyshireaccountants.com