5 months to the tax year end — a practical checklist for small businesses and the self-employed

As we head into the final stretch of the tax year (ending 5 April 2026), now is the perfect time to take stock of your business finances. A bit of preparation before the rush can make all the difference — helping you maximise deductions, reduce stress, and set your business up for a strong start in the new tax year.

Here’s a practical checklist to help you stay organised and in control:

1️⃣ Review Your Income and Expenses

Go through your bookkeeping and make sure everything is up to date.

• Reconcile your bank accounts.

• Check that all business expenses are recorded (especially smaller items like subscriptions or mileage).

• Separate personal and business transactions to avoid confusion later.

2️⃣ Consider Year-End Purchases

If you’re planning to buy new tools, equipment, or a vehicle, timing can be key. Purchasing before 5 April could allow you to claim capital allowances sooner — reducing this year’s taxable profit.

3️⃣ Check Your Tax Payments

• Have you made your payments on account for the year?

• Review whether you’ve overpaid or underpaid — adjusting early avoids surprises.

• If profits are lower this year, you might be able to reduce your next payment on account.

4️⃣ Plan for Pension Contributions

Pension contributions can be a smart way to reduce taxable income while investing in your future. Check your allowance and consider making contributions before the tax year closes.

5️⃣ Review Dividend and Salary Mix (for Company Directors)

If you’re a limited company director, now’s the time to assess how you’re paying yourself.

• Is your salary-to-dividend ratio still tax-efficient?

• Would it help to declare dividends before the year end?

A quick review with your accountant can ensure you’re drawing income in the most tax-savvy way.

6️⃣ Make Use of Annual Allowances

Make sure you’re using available allowances such as:

• The £1,000 trading allowance (if applicable)

• The £1,000 property allowance (for rental income)

• Your ISA or capital gains exemption if you hold investments

7️⃣ Review Outstanding Invoices and Debts

Chase unpaid invoices now — it helps improve your cash flow and gives a clearer picture of your true year-end position.

8️⃣ Get Ready for MTD and Digital Records

If you’re self-employed or a landlord earning over £50,000, Making Tax Digital (MTD) will apply from April 2026.Now’s a good time to move to digital record-keeping software if you haven’t already.

9️⃣ Talk to Your Accountant Early

Your accountant can help you identify extra savings and prepare for any changes on the horizon. A short check-in before year end can uncover valuable opportunities to reduce your tax bill legally and efficiently.

1️⃣0️⃣ Prepare for the Year Ahead

Use this time to plan your next 12 months:

• Set business goals.

• Review your pricing.

• Build a cash buffer for quiet periods.

A little foresight now can lead to smoother, more profitable months ahead.

Final Thought

The end of the tax year might seem far away, but acting now saves last-minute stress — and could save you money. If you’d like help reviewing your year-end position or want a tailored checklist for your business, get in touch today.

Let’s make sure you finish this tax year strong — and start the next one even stronger.