Business Owners, Don't Wait Until March: Your Tax Year-End Action Plan

Let's be honest, tax year-end planning isn't anyone's idea of fun, and leaving it until the last minute is far from enjoyable. The good news, if you tackle it now, you've got time to plan rather than panic.

Whether you're running a farm, a trading business, or a family enterprise, here are the essential actions to consider before the 5th of April rolls around.

Your Essential Year-End Checklist

1.       Help maximise pension contributions

Pension contributions help reduce your taxable profits and build retirement savings. For business owners, employer contributions are particularly tax-efficient, reducing both corporation tax and personal tax liabilities.

Review how much you can afford to contribute, even a one-off contribution can make a significant difference to this year's tax bill.

2.     Bring forward planned capital expenditure

If you're planning to buy equipment, vehicles, or machinery in the next few months, consider purchasing before the 5th of April to claim tax relief this year rather than next. If this is relevant to you then please also consult your accountant.

The Annual Investment Allowance (up to £1 million) allows immediate tax relief on qualifying purchases, so it’s worth assessing your business plan for Q1.

Double-check you’ve claimed all available capital allowances on equipment, buildings, and machinery already purchased. 

3.     Use your ISA allowances

The annual ISA allowance is £20,000 per person, and it doesn't roll over, so if you don't use it, you lose it. If you have surplus cash, consider using ISA allowances for tax-efficient savings and investments.

4.     What’s your profit extraction strategy?

The balance between salary, dividends, and pension contributions can make a significant difference to your overall tax position. With employer National Insurance contributions increasing from April, now is a good time to review whether your current remuneration structure is still viable.

5.     Review your succession and estate planning

Changes to some inheritance tax reliefs come into force from April 2026, so if you haven’t already, now is the time to review how your business or estate will eventually pass down to the next generation.

6.     Check your protection is adequate

As your business grows and your personal circumstances change, your insurance needs evolve - life insurance and income protection become increasingly important.

When did you last review your cover? It’s worth checking that your protection still matches your needs.

Think bigger than just this tax year

Year-end planning isn't just about reducing your tax liability; it's about setting your business or farm up for the long term. The strategic decisions you make now whilst you have a little time to think them through, can have a much bigger impact than just this year's tax bill.

The value of an investment with St. James's Place will be directly linked to the performance of the funds you select and the value can therefore go down as well as up. You may get back less than you invested.

The levels and bases of taxation and reliefs from taxation can change at any time. Tax relief is generally dependent on individual circumstances.

Please note that St. James's Place does not offer Cash ISAs.

Although the content of the article was correct at the time of writing, the accuracy of the information should not be relied upon, as it may have been subject to subsequent tax, legislative or event changes.