Year-End Tax Planning Checklist for UK Businesses

Year-end tax planning gives businesses an opportunity to review their financial position before the accounting period closes. Leaving everything until the accounts are being prepared can mean there is less time to identify missing records, understand liabilities or consider important financial decisions.

At Thomas Nock Martin, we encourage businesses to take a proactive approach to tax planning. Reviewing your position before year-end can help you understand what tax may be due and ensure your financial records are ready for the next stage.

This year-end tax planning checklist covers some of the key areas UK businesses should consider.

1. Review Your Financial Performance

Start by reviewing how the business has performed during the accounting period.

Up-to-date accounting records can provide a clearer picture of turnover, expenditure and estimated profit.

Consider whether performance is broadly in line with expectations and investigate any significant changes

For example, have costs increased substantially? Has revenue changed? Are there unusual transactions that need to be discussed with your accountant?

Understanding your financial position before year-end provides a stronger starting point for tax planning.

2. Check Your Business Expenses

Review expenses to ensure legitimate business costs have been recorded correctly.
Depending on the business, relevant expenses could include:

• Office and premises costs.
• Business insurance.
• Professional fees.
• Staff costs.
• Qualifying travel expenses.
• Advertising and marketing.
• Telephone and internet costs.
• Other costs incurred for business purposes.

The tax treatment of an expense depends on the circumstances and relevant rules, so not every payment made from a business account will necessarily be deductible.

Accurate records and supporting documents can help establish which costs should be included when preparing your accounts and tax calculations.

3. Review Planned Capital Expenditure

If the business is considering purchasing equipment, machinery or other significant assets, it can be useful to discuss the plans with your accountant before committing to the expenditure.

Qualifying expenditure may be eligible for capital allowances, which can reduce taxable profits.

However, the rules vary depending on the type of asset and circumstances.

The timing of expenditure can also be relevant, so businesses should avoid making purchases purely for tax reasons without first considering whether the investment is commercially necessary.

At Thomas Nock Martin, tax considerations are viewed alongside the wider financial needs of the business.

4. Estimate Your Tax Liability

An unexpected tax bill can create unnecessary pressure on cash flow.

Before year-end, businesses should consider their likely taxable profits and obtain an indication of the potential tax liability where possible.

For limited companies, this may include estimating the Corporation Tax due for the accounting period.

The main Corporation Tax rate remains 25% in the 2026/27 financial year, with a 19% small profits rate for qualifying companies with profits of £50,000 or less. Marginal Relief can apply between the relevant profit limits. These thresholds can be adjusted where companies have associated companies or shorter accounting periods.

Having an estimate in advance can help the business plan its cash requirements rather than waiting until the tax payment deadline approaches.

5. Review Director Remuneration

For owner-managed limited companies, year-end can also be an appropriate time to review how directors who are shareholders have taken income from the company.

Salary and dividends have different tax treatments.

Dividends can only be paid from sufficient available profits and should be properly declared and documented.

For 2026/27, the Dividend Allowance is £500, while the basic and higher dividend tax rates increased from 6 April 2026.

Director remuneration should therefore be considered in the context of both the company’s finances and the director’s wider personal tax position.

There is no single salary-and-dividend approach that is appropriate for every company director.

6. Check Your Financial Records

Accurate records make both year-end accounts and tax planning considerably easier.

Before the accounting period closes, check whether you have appropriate records for:

• Sales and income.
• Purchases and expenses.
• Bank transactions.
• Business assets.
• VAT where applicable.
• Payroll where applicable.
• Loans and finance.
• Dividends.
• Other significant transactions.

Missing invoices or unclear transactions are easier to investigate while they are still relatively recent.

Keeping records up to date throughout the year can also reduce the amount of work required when annual accounts need to be prepared. For more guidance, read our guide on what business records to keep for HMRC to understand which documents your business should retain and why accurate record-keeping matters.

Accurate financial reporting relies on the right knowledge and expertise. Understanding the qualifications required for an accounting specialist can also help businesses appreciate the professional skills involved in managing financial records and preparing accounts.

7. Review Upcoming Tax and Filing Deadlines

Your company’s accounting year-end is not necessarily the same as the deadline for paying tax or filing accounts.

For an established private limited company, annual accounts are normally due at Companies House nine months after the company’s financial year-end.

Corporation Tax is generally due nine months and one day after the end of the accounting period for companies that are not within the quarterly instalment payment regime.

The Company Tax Return is normally due 12 months after the end of the accounting period.

Knowing these deadlines in advance helps businesses plan both the administrative work and the cash needed for upcoming liabilities.

8. Consider Any Significant Business Changes

Tax planning should also consider what is happening outside the accounting records.

Tell your accountant about significant changes that have happened or are being considered.

These might include purchasing or selling major assets, changing business structure, bringing in another shareholder, disposing of shares or property, expanding the business or preparing for a future sale.

These decisions can have accounting and tax consequences.

Discussing them before transactions are completed may provide more opportunity to understand those consequences and plan appropriately.

When Should Year-End Tax Planning Start?

Tax planning should ideally begin before the final days of the accounting period.

The appropriate timing depends on the complexity of the business, but reviewing the position several weeks or months before year-end can provide more time to resolve outstanding issues.

Tax planning should also be an ongoing process rather than something considered only once a year.

If circumstances change significantly during the year, speaking to your accountant at that point may be more useful than waiting until year-end.

How Thomas Nock Martin Can Help

Effective year-end tax planning is about understanding your financial position before important decisions and deadlines arrive.

At Thomas Nock Martin, we help businesses review their accounts, taxation requirements and financial information so they can approach year-end with greater clarity.

A year-end review can help identify missing records, consider relevant expenditure, estimate potential tax liabilities and highlight matters that may require attention before the accounting period closes.

If your business is approaching year-end, speak to the Thomas Nock Martin team to arrange a year-end tax review.

FAQs

When should year-end tax planning start?

Ideally, tax planning should begin before the accounting period ends. Starting early provides more time to review records, understand expected profits and discuss significant transactions or expenditure.

What should I review before my business year-end?

Review your financial performance, business expenses, accounting records, planned expenditure, expected tax liabilities and upcoming filing deadlines. Significant changes to the business should also be discussed with your accountant.

Should I review capital expenditure before year-end?

Yes. If you are planning to purchase equipment or other business assets, it can be useful to understand the potential accounting and tax treatment before completing the purchase.

How can I estimate my tax liability?

Up-to-date accounting records can be used to estimate profits and provide an indication of potential tax liabilities. The final calculation will depend on the business’s circumstances, available reliefs and applicable tax rules.

Can an accountant review my tax position before year-end?

Yes. A year-end tax review can help identify issues requiring attention and provide a clearer understanding of potential liabilities. Thomas Nock Martin can review your position based on your business’s individual circumstances.