As the 5 April 2026 tax year end approaches, proactive year end tax planning is essential for business owners and directors looking to protect their bottom line. In part 1 of our year end tax planning guide we provide some key points to think about if you’re running a business.
In summary:
Key points this year
The run up to the end of the tax year on 5 April 2026 is a good time to check and business finances are arranged in the best way possible.
In this Year End Tax Planning Guide, we look at useful ways to take advantage of available tax reliefs and planning opportunities.
Note that throughout the Guide, we use the rates and allowances for 2025/26, and that the term spouse is used to include a registered civil partner.
Working with you
As your accountants, we have the insight into your affairs that can make a real impact, and we look forward to being of assistance.
For companies and business owners
Planning issues for companies
Planning for optimal tax efficiency has become more complex with higher rates of Corporation Tax since 2023, and the operation of marginal relief.
Corporation Tax
The rate of Corporation Tax payable depends on the level of taxable profits in the company, plus certain dividends received by the company.
| Taxable profits | Corporation Tax rate |
| £0 to £50,000 | 19% small profits rate |
| £50,001 to £250,000 | 25% less marginal relief |
| Over £250,000 | 25% main rate |
The Corporation Tax rate is applied to the company’s taxable total profits. A company with profits of £400,000 would therefore have a Corporation Tax liability of £100,000 (25% of £400,000).
Companies with profits between £50,000 and £250,000 pay at the main rate reduced by marginal relief. This creates a gradual increase in the Corporation Tax rate, resulting in an effective tax rate of 26.5% for profits between £50,000 and £250,000.
Group structure is important as limits are shared where there are associated companies. The rules on associated companies can be tricky to get right.
| Action point: Maximise deductions |
| The impact of marginal relief means maximising deductions is particularly important for companies where profits fall between these thresholds. |
Claim for capital allowances
Making sure that you maximise claims for capital allowances is a particularly important way to do this.
The Annual Investment Allowance (AIA) now stands at £1 million. Along with general Writing Down Allowances (WDAs) this will provide relief sufficient for many companies. There is a further capital allowance, the Structures and Buildings Allowance, available on some new commercial structures and buildings, which will be relevant to some businesses.
There are, in addition, some special provisions for companies. These allow companies investing in qualifying new plant and machinery to claim:
- first year allowances (FYAs) of 100% on most new plant and machinery investment which would ordinarily qualify for 18% WDAs. This is usually known as Full Expensing
- a FYA of 50% on most new plant and machinery investment which would ordinarily qualify for 6% special rate WDAs
- note that this excludes expenditure on cars, and most plant and machinery for leasing.
These additional reliefs come into their own where companies or groups make major investment over the level of the AIA. The disadvantage is that where the FYAs have been claimed, a balancing charge based on proceeds may arise on disposal. You may therefore wish to consider timing capital acquisitions to make maximum use of the AIA instead.
Change to rules
Autumn Budget 2025 announced two key changes to the rules:
- a reduced rate of WDA on the main pool of plant and machinery from 18% to 14% per year. This will apply from 1 April 2026 for Corporation Tax. A hybrid rate will apply for businesses whose chargeable period spans this date
- a new year FYA of 40% for main rate expenditure, with fewer restrictions than other FYAs. This will be available for expenditure incurred from 1 January 2026.
| Tip: New FYA available for assets used for leasing |
| Unlike Full Expensing, the new FYA will be available for most assets used for leasing and is therefore a welcome widening of scope. It does not, however, apply to overseas leasing, second hand assets or cars. |
Loss claims
A claim for loss relief, whether a trading or property loss, or loss on the sale or disposal of a capital asset, can be used to reduce the overall tax liability. This can help with cash flow, and in some circumstances, may generate a refund.
Generally, a loss may be set off against other profits of the same accounting period, and then carried back to the previous 12 months. There is also scope to carry losses forwards, subject to certain conditions.
When to claim: Decisions on loss relief claims can impact cash flow and the overall level of tax relief.
| Action point: Watch two-year limits |
| Broadly, loss claims must be made within a particular window. To set a loss against profits of the current, or an earlier accounting period, the claim must usually be made within two years of the end of the accounting period in which the loss was made. |
Profit extraction planning points
Ongoing change continues to make profit extraction strategy for director-shareholders in family companies a complex matter.
Extraction through dividends
Care has always been needed to decide whether it is more tax efficient to extract profit from the company as dividends or as salary. This year, change to the rate of tax on dividend income announced in the Autumn Budget 2025, coupled with the current low Dividend Allowance of £500, make it even more important to check the figures in your individual circumstances.
| Tax band | Current dividend rate | From 6 April 2026 |
| Basic rate | 8.75% | 10.75% |
| Higher rate | 33.75% | 35.75% |
| Additional rate | 39.35% | 39.35% |
The 2% increase for all but the additional rate will continue to make profit extraction via dividend payment more expensive.
It will also impact liability for what is often called s455 tax. This is the tax due on unpaid directors’ loan accounts, and is paid at the dividend upper rate. We cover this in more detail elsewhere in the Guide.
Note, in passing, that increased tax rates on savings and property income are planned with effect from 6 April 2027. This will also impact the position of many of those involved in family companies.
| Action point: Accelerate dividend payment before April 2026 |
| There is still a window to access current lower rates, and you might like to consider whether this would work in your circumstances. It is important to get the procedure around declaration and payment of dividends right. |
Other factors to take into consideration
- Dividends are paid out of retained (post-tax) profits, an important consideration given current Corporation Tax rates.
- Overall, dividends are still subject to lower Income Tax rates than non-savings income.
- Dividends do not incur National Insurance Contributions (NICs), a potential saving for the director-shareholder as employee, and the company as employer.
- Dividend payments do not qualify as relevant earnings for personal pension payments.
- Scottish taxpayers will need to balance the fact that dividends are taxed at UK rates, against the fact that bonuses are taxed at Scottish rates as employment income.
Profit extraction via dividends may or may not be the most efficient route for you. Please talk to us to establish the optimal strategy.
Paying a salary
As far as the company is concerned, salary and employer NICs are generally deductible business expenses for Corporation Tax purposes.
Traditionally, many family companies have set salary at a level preserving State Pension entitlement, but minimising the level of NICs due. In many cases, a salary covering the standard Personal Allowance has been appropriate.
However, there are other factors which now also affect the decision. These include:
- the current threshold for employer NICs
- the widening gap between employer and employee NICs
- higher Employment Allowance of up to £10,500 since 6 April 2025.
A wide range of issues, including the level of any other income; the personal circumstances of each director; company performance, activities and group structure, will all need to be taken into account. We should be pleased to help you determine an appropriate figure for salary in your circumstances.
Adapting for National Insurance costs
Planning to minimise these costs continues to be important following the increase in employer NICs from 6 April 2025.
Though the changes do not impact director-shareholders in their capacity as employees of the company, they do impact them in their role as owner-employers. The overall impact will depend on your individual circumstances, and we can help you review the National Insurance position throughout your business.
| Tip: Senior family members |
| Employees do not pay NICs on reaching State Pension age, although employer NICs continue to be due. This may be a plus point for senior family members who can still use salary to make tax-relieved pension contributions up to age 75, and is worth bearing in mind when thinking about extraction strategy. |
Extraction via bonus
Payment of a bonus is subject to employer NICs for the company; and Income Tax and NICs for the director-shareholder.
It is, however, a deductible expense for Corporation Tax purposes, and can thus be used to reduce taxable profits, or generate a loss.
Use timing to advantage
The timing of a bonus determines when it is chargeable to tax for the director-shareholder. You may be able to defer taxation to a later tax year, or include it in the current tax year, depending on how and when the bonus is declared. It may be possible to keep a deduction for the bonus in the current accounting period for Corporation Tax purposes, so long as the bonus is paid within nine months of the company year end. It is important to get the timing and procedure right.
Profit extraction through pension contributions
Pensions provide significant planning opportunities, though thinking now needs to take account of the extension of Inheritance Tax to unused pension funds and death benefits from 6 April 2027.
Contributing to a personal pension, however, continues to make sense. If the company makes employer contributions to a personal pension for a director-shareholder, the advantage is two-fold. The company (as employer) gets tax relief and saves on NICs. The director-shareholder (as employee) gets a benefit free of tax and NICs. Note also that employer contributions are taken into account in determining the recipient’s annual allowance for pension purposes.
| Tip: Continued advantage to employer contributions |
| The Autumn Budget 2025 announced forthcoming change to the National Insurance exemption on salary-sacrificed pension contributions. This will cap the exemption at £2,000 and will take effect from 6 April 2029. There is no change, however, to the NICs exemption for employers making pension contributions outside a salary sacrifice scheme. |
Rules to remember
- Employer contributions must meet the test of being wholly and exclusively for the purposes of the trade.
- The overall remuneration package must be commercially justifiable.
| Tip: Contributions for family members |
| The company can also make pension contributions for a spouse, children, or other family members employed in the business, provided always that they meet the rules set out above. |
Do please talk to us for specific advice in this area.
Dealing with directors’ loan accounts
What are directors’ loan accounts?
It is common for director-shareholders in family companies to have a loan account with the company. This might take a number of forms: sometimes it is a specific amount borrowed outright as a short-term loan, but more often it may comprise informal transactions such as cash withdrawals to meet personal expenditure; or personal expenses that are paid directly by the company.
| Tip: Active area of HMRC compliance |
| HMRC has increased its compliance activity around directors’ loans over the last year. This has included nudge letters to company directors who had a loan written off within specific dates, where HMRC thinks that this might not have been entered on the tax return. This attention from HMRC is a timely reminder of the importance of getting compliance right, as errors have the potential to impact the tax position for both the individual director and the company. |
Overdrawn accounts
Where a director has borrowed more, overall, from the company than they have lent to it, the director’s loan account is said to be overdrawn. The balance is then usually cleared a few months after the year end, when profits have been determined. This is typically done by voting a dividend or paying a bonus.
Implications for Corporation Tax
Most family companies are what are technically known as ‘close’ companies. This brings them within scope of the loans to participators rules. These rules mean that there may be a Corporation Tax liability, often known as a s455 charge, if the loan is not paid within nine months and a day after the end of the accounting period. The charge is currently 33.75%.
| Tip: s455 charge increasing |
| Because the s455 charge is set by reference to the upper dividend rate, new rules on dividend rates announced in the Autumn Budget 2025 increase the s455 charge by two percentage points. It will therefore become 35.75% from 6 April 2026. |
When the loan is then paid, released or written off, the charge can be reclaimed from HMRC. There is a timing difference, however, with tax being reclaimed nine months and a day after the end of the accounting period in which the loan is repaid.
| Tip: Check the overall tax position |
| Some loans to director-shareholders can fall to be treated as taxable employment benefits. There can also be Income Tax implications for the individual where a director’s loan is written off, as well as National Insurance consequences for the individual and company. The rules are complex, and we are happy to discuss your individual circumstances with you. |
Planning so the charge does not arise
The charge does not normally arise if the director-shareholder pays off the loan balance within nine months and a day of the accounting year end. Clearing the loan balance can be done by paying dividends; payment of a bonus; repaying in cash; or by writing off the loan.
Please call on us for further advice in this area.
Basis period reform
Background
The way that business trading income is allocated to tax years for Income Tax purposes changed from 6 April 2024 for some self-employed and partnership businesses. The impact of the change is still being felt.
The change is known as basis period reform, and it only applies to businesses that do not use a 31 March or 5 April year end. Under the new rules, businesses are taxed on the profits arising in the tax year, rather than in the business accounting year, as has previously been the case.
Practical implications
Special rules exist for profits arising between the accounting year end and 5 April 2024, when the new rules started to take effect. By default, these profits, known as transition profits, are spread over five years, starting with 2023/24.
You do not, however, have to use this default treatment, and varying the spread of profits is something that can be used as a planning tool in some circumstances. It may, for example, be useful to vary the spread of profits if your business is growing and you anticipate paying tax at higher rates in coming years. It may also help minimise the loss of the Personal Allowance where income is more than £100,000.
| Tip: Elect to accelerate |
| You can elect to accelerate the amount of transition profits brought into account in a tax year. This is done on the self assessment tax return. We should be happy to help here. |
Tax and side hustles: understanding the rules
More people than ever now have a side hustle, or second source of income, and it is important to appreciate the possible tax implications.
HMRC has created a new online tool, which aims to help users work out if they need to notify HMRC about income from sources like selling goods online or creating online content. It may make a useful starting point if, perhaps, younger members of the family ask to be pointed in the right direction. It can be found by searching ‘Help for hustles’.
Compliance responsibilities
Notifying HMRC: There may be a need to notify HMRC of income received, and this is a responsibility distinct from any question of tax liability. HMRC must be notified where income is above a particular level. An allowance known as the trading allowance covers trading income of £1,000 or less each year without paying tax. Another allowance, the property allowance, gives the same tax-free treatment to £1,000 property income. Where income is below these limits, there is usually no need to report it to HMRC. Where income is above the limits, HMRC must be notified.
Tax liability: If someone has a side hustle, it does not necessarily follow that there is a tax liability, unless income from all sources, including the side hustle, is over the basic Personal Allowance of £12,570.
HMRC access to information: HMRC has access to a wide range of information sources, and is well placed to spot signs of economic activity. New rules for digital platform operators, such as Deliveroo, Airbnb and eBay, mean they must now collect and check details of users, and report information to HMRC where sales are above particular levels.
Knowing when a hobby has turned into taxable trading can be difficult to determine.
Plan for tax efficient business motoring
Planning for the cost of business motoring is always important, and there can be significant tax implications to factor into the decision making process.
Electric vehicles: the way ahead?
Tax incentives continue for the purchase and ongoing costs of zero and low emission vehicles, and they have made electric technology a particularly attractive option. But as time goes by, and the government achieves its aim of getting more electric vehicles on the road, the benefits are starting to flatten out.
Businesses may therefore want to consider whether they should buy into electric technology now, while the advantages are still near their peak.
There are two key points to consider: significant upfront tax relief for employers buying new electric cars; and the part low emission cars can play in controlling benefit in kind costs and crafting an attractive remuneration package.
Buying new
The rules for capital allowances continue to be very favourable for the purchase of new electric cars.
Existing first-year allowances (FYAs) of 100% for new zero emission cars and electric vehicle charge points have been extended until 31 March 2027 (for Corporation Tax) and 5 April 2027 (for Income Tax). Note that this 100% FYA is only available where a car is purchased, not leased, and that used electric cars default to the 18% Writing Down Allowance (WDA). From April 2026, the WDA drops to 14% per year.
This contrasts with the treatment for cars with internal combustion engines (ICE). These get tax relief gradually, via annual WDAs, and the difference in timing can be significant to business cash flow. WDAs depend on CO2 emissions. From April 2021, cars purchased with emissions not exceeding 50g/km attract 18% WDAs: and with emissions in excess of this, 6% WDAs.
The rules for vans are different.
Controlling benefit in kind costs
With higher employer National Insurance costs for employers across the board, using low emission vehicles can help keep costs down. The lower benefit in kind costs and other tax breaks also mean that employers can provide employees with an attractive remuneration package at a reduced cost.
Costs involved
A benefit in kind charge, often called company car tax, arises where directors and other employees are provided with a car available for private use. For employers, this means paying Class 1A National Insurance contributions (NICs) on the benefit in kind. The Class 1A charge continues to be 15% for 2025/26.
| Tip: Arguing the point on private use |
| The benefit in kind charge does not arise if the vehicle is not available for private use. This is a high hurdle, and is more demanding than simply not being used privately. Please talk to us if you have questions in this area. |
Comparing costs: electric and internal combustion engine technology
The benefit in kind charge is worked out by reference to the list price of the car, plus particular taxable accessories. This is then multiplied by the appropriate percentage, a figure based on the vehicle’s CO2 emissions. Lower emission vehicles have significantly lower percentages.
ICE vehicles have a maximum percentage of 37% in 2025/26; 2026/27 and 2027/28. The position for zero emission vehicles, on the other hand, is very different:
| Appropriate percentages for zero emission vehicles | |
| 2025/26 | 3% |
| 2026/27 | 4% |
| 2027/28 | 5% |
| 2028/29 | 7% |
| 2029/30 | 9% |
As these figures also show, however, the initial very favourable treatment is slowly changing.
Autumn Budget 2025 announced a temporary easement for plug-in hybrid electric vehicles made available for private use, to counter the impact of new emission standards. A nominal value will be used to lessen the benefit in kind charge. This will apply retrospectively from 1 January 2025 until 5 April 2028, and for eligible vehicles until the earlier of variation or renewal of the arrangement, or 5 April 2031.
Note that electricity does not count as a fuel for the purposes of car fuel benefit. This means there is no taxable benefit where employers provide charging facilities at or near the workplace; or pay for a charging point for the employee at home; or for a charge card to be used at public charging points.
Creating a cost efficient package for employees
Change to the tax rules in recent years means salary sacrifice arrangements are no longer efficient for ICE vehicles. They can, however, be particularly beneficial for cars with zero emissions.
| Tip: Use salary sacrifice |
| In a typical arrangement, the employer leases an electric car, which is then paid for out of gross salary by the employee. Care is needed with the arrangement, and minimum wage rules also need consideration. But where everything is put in place correctly, it can result in employer NICs savings on the difference between salary after sacrifice, and the benefit in kind. The arrangement can also provide the employee with a more affordable entry into the electric market. Please talk to us for more advice. |
Other points to consider
Excise Duty: Electric vehicles, registered on or after 1 April 2025, receive favourable first-year rates of Vehicle Excise Duty (VED) at £10. A further incentive sees an increase in the VED expensive car supplement threshold for zero emission vehicles. The threshold will go up to £50,000 (from £40,000) from 1 April 2026, and will apply to such vehicles registered from 1 April 2025 onwards.
The Autumn Budget 2025 announced a new mileage charge, the Electric Vehicle Excise Duty (eVED) for electric and plug-in hybrid cars, due to take effect from April 2028. This will be set at 3p per mile for electric cars, and 1.5p per mile for plug-in hybrids, with the charge being paid alongside existing VED. The government is consulting on how this will work in practice.
Direction of travel
As the gradual increase in appropriate percentages and introduction of eVED show, the current generous tax breaks for electric vehicles won’t last for ever. We are happy to discuss the potential benefits while they are still on the table.
Double cab pick-ups: no longer such a good deal
New rules on the tax treatment of double cab pick-ups (DCPUs) announced in the Autumn Budget 2024 have now taken effect, with cost implications for employers and employees where DCPUs are still used. HMRC has also confirmed that the new rules include models sometimes referred to as extended, extra, king and super cab pick-ups.
Under the new rules, the ‘primary suitability of a vehicle at the time of manufacture’ now determines whether a vehicle is classed as a car or goods vehicle for capital allowances and benefit in kind purposes. This effectively means that most DCPUs now stand to be treated as cars.
| Tip: Changing vehicles |
| Though it may make the drive less attractive, replacing DCPUs with single cab pick-ups, all-terrain vehicles or vans can still facilitate access to the more beneficial tax rules. |
The tax implications of decisions on business motoring are extensive, and can impact areas that range from capital allowances to the benefit in kind rules.
The family business
Highlighting tax efficiencies and points for family business owners.
Involve family members
For family companies and unincorporated businesses like partnerships and sole traders, involving members of the family is usually a good planning option. It gives the possibility of multiplying opportunities to extract profits before higher rates of tax are reached. It can also be useful where there is a spouse or child who might not otherwise use the Personal Allowance.
Ensure active involvement
HMRC is always keen to check the reality behind family arrangements. It is therefore important that family employed in the business really do play an active role.
Remuneration must be commercially appropriate, and must be incurred wholly and exclusively for the purposes of the trade. Make sure, too, that work done by family members can be evidenced. Note that where a non-working spouse is given shares in what is otherwise a one-person private company, HMRC may consider that this falls under what is known as the settlements legislation, and look to tax the working spouse on dividends. Please talk to us for more information in this area.
Use the Employment Allowance
The Employment Allowance (EA) allows eligible employers to reduce their annual National Insurance liability by up to £10,500. New rules taking effect in 2025 opened the scheme up to employers paying more than £100,000 in Class 1 National Insurance Contributions (NICs), and also increased the maximum EA.
Historically, some employers have not claimed where they would have been eligible to do so. The recent changes make the EA even more valuable in controlling National Insurance costs, and employers are well advised to check eligibility and make sure that the EA is claimed where appropriate.
Eligibility
The EA cannot be claimed by single director companies where the director is the only employee paid above the Class 1 National Insurance threshold. Where there is genuine scope to remunerate another employee at a level above the secondary threshold for employer NICs, this could enable access to the EA.
Note that where there are connected companies, only one company can claim the EA. It is up to the companies to decide between themselves which will do so.
| Action point: Review use of the Employment Allowance |
| The EA is not given automatically: it must be claimed each tax year. In some circumstances, it may be possible to claim EA for the previous four tax years, going back to 2021/22. |
Why succession planning is now a priority
Having a plan for what happens to the business when the owner manager is no longer involved has always been important. Yet statistics regularly show that most business owners don’t have a succession plan in place. They’re too busy running the business to make it a priority, or the issue isn’t one that they feel comfortable dealing with.
Forthcoming changes to the Inheritance Tax and Capital Gains Tax rules (covered in the Capital Taxes section of this Guide) however mean that a business that fails to plan for the future is more likely to face significant tax consequences than has previously been the case.
Plan the process
A succession plan is a business continuity plan as much as a succession plan. It’s not all about an exit from the business, and it doesn’t have to be a cliff-edge. A gradual process can often be an advantage to everyone involved. This can allow the current senior generation to step back, or take on a slightly different role, at the same time as bringing forward new members with new talents.
It might be that this involves difficult choices, but making those choices puts the business owner in the driving seat, rather than leaving future tax liability – and the future of the business – to chance.
The first step is to put a plan in place – and there is no better time to think about it than now. If there is already a plan in place, check whether it reflects current business and personal goals, and those of wider family. The next thing to consider is whether the plan takes into account the new outlook for IHT.
Formalise family arrangements
Family businesses are unique in having two distinct areas to manage. There’s a business to run, with all that entails. Then there is the family dimension, and this is something that also needs careful handling, ideally with some sort of overarching framework agreed by all parties.
Simple things like defining who does what, and who has responsibility for particular areas of the business can have considerable impact. Look at the skills that family members have and make sure these are put to best use. Firming up roles and responsibilities lessens uncertainty and can help avoid conflict. Putting it all down in writing is another important step.
Communication is always important. Regular family meetings can allow open conversations and facilitate two-way flows of information. There can be advantages in structured quarterly board meetings, possibly with a neutral facilitator as chair. The formality of agendas and minutes can sometimes help maintain a boundary between business and personal issues: and some family businesses use a family constitution – a range of documents unique to them, setting out their values, goals, and governance structure.
Making a robust plan for the future can also mean considering whether appropriate formal arrangements are in place. These might include legal arrangements such as shareholder agreements; employment contracts; pre-nuptial and post-nuptial agreements as safeguards in the event of relationship breakdown; powers of attorney and up to date wills. Formalising areas that might otherwise be left to chance mean all parties know what to expect, and the scope for misunderstanding is reduced.
Use business structure to advantage
The way that the business is structured can also be used to facilitate a change-over process.
Using a partnership, for example, can have advantages such as allowing the spread of income and profits between family members. This might mean being able to provide income to family members in lower tax bands, while retaining flexibility to lessen the impact of higher tax bands on senior members.
In some circumstances, trusts can also provide a useful way to implement change. Where there is significant family wealth, the use of Family Investment Companies can combine tax efficiency with a structure that allows for the gradual transfer of wealth and control to incoming family members.
Plan ahead for Business Asset Disposal Relief (BADR)
BADR has always been a key relief for the disposal of a business or business assets. For many years, BADR, where available, has charged the first £1 million of qualifying lifetime gains at an effective rate of 10%, but the relief has become less generous:
- the rate of tax is 14% for gains on qualifying assets disposed of from 6 April 2025
- it rises to 18% for qualifying assets disposed of on or after 6 April 2026.
Careful attention to the way a business is owned and structured is essential to ensure eligibility for BADR, as various ownership conditions apply. They require, for instance, a minimum period of ownership of two years up to the date of disposal, and for companies, the requirement to hold at least 5% of the company’s ordinary share capital, and the ability to exercise at least 5% of the voting rights.
| Action point: Review eligibility for BADR |
| Claims for BADR can fail for lack of planning. Regular review of shareholdings and other requirements can ensure eligibility for BADR is maximized. |
Use shareholding to facilitate the handover
Shareholding can help facilitate a gradual phasing in of new family members to a family company. Incoming family members can be given the chance to get involved in the family business, explore roles and demonstrate commitment, while the senior generation retains control. The use of different types of shares, with different rights attached (sometimes called alphabet shares) can be particularly useful here. Over time, the percentage stake in the business can be reset, with shareholdings used to pass the baton from one generation to the next.
Working with you
We are here to help you decide how your business should navigate the future. Please don’t hesitate to contact us for more advice.
Year end checklist
For companies
Maximise deductions for Corporation Tax purposes
Check that all available capital allowances are claimed
Make loss claims within appropriate two-year window
Consider eligibility for R&D claims
For director-shareholders and other business owners
Assess remuneration strategy
Review profit extraction in family companies
Consider acceleration of dividend payments before higher tax rate from 6 April 2026
Take appropriate action on directors’ loan accounts
Review use of Employment Allowance
Check eligibility for Business Asset Disposal Relief and consider short window before 6 April 2026 to make qualifying disposals at current 14% rate
Plan for business succession
Assess impact of exposure to IHT in the future.
Working with you
This Guide will help identify areas that could significantly impact your overall tax position. Advice specific to your circumstances, however, is always essential.
Do please contact us well in advance of 5 April 2026 to make the most of the options available.
If you would like to discuss how we can support your business with our outsourced accounting services and virtual CFO services, please get in touch.
Use of this information is for reference only. Specialist Accounting Solutions Ltd accepts no liability for any errors therein or any losses or damages arising from it.
