Tax Year-End Checklist 2025/26: 10 Things to Do Before 5 April 2026

Before making any decisions, you need clarity on where you stand. What is your estimated profit for the year? What corporation tax, income tax, and dividend tax will arise? Have you set money aside? Even a rough estimate now gives you options in the final weeks.

The balance between salary and dividends remains a key lever. Before 5 April, confirm your director salary has been paid as planned, review whether to declare a dividend, and check how dividends interact with your personal tax bands. If you declare dividends, ensure the admin is correct: board minutes, dividend vouchers, and evidence of sufficient distributable reserves.

Check whether you have used the available dividend allowance as planned. If you have a spouse or co-shareholder, does your structure allow allowances to be used efficiently? Dividends should only be declared if the company has sufficient distributable profits and it aligns with your wider planning.

Pension contributions remain one of the most effective planning tools available. Consider personal pension contributions and employer pension contributions from the company — employer contributions can be tax-deductible for the company and reduce the need to take income personally. Always verify annual allowance limits and your wider income position.

Before the year closes, ensure all legitimate business expenses are recorded properly. Commonly missed: professional subscriptions, training and development, use of home as office, mileage and travel, software subscriptions, equipment, and accountancy or legal fees. People often overpay tax simply because bookkeeping is incomplete.

If you were already planning to invest in equipment or technology, timing can matter. Purchases before year end may qualify for capital allowances relief. The key: do not buy things purely for tax reasons, ensure there is genuine commercial purpose, and keep invoices clean.

One of the most overlooked year-end issues. If you have taken money from the company that is not salary, dividends, or reimbursed expenses, it may be sitting in your director’s loan account. Review whether it is overdrawn, whether it should be cleared, and whether the documentation is in place.

Before 5 April, reconcile bank accounts, reconcile payment platforms (Stripe, PayPal, Wise), file invoices and receipts properly, and categorise transactions correctly. Clean records make year-end faster, cheaper, and more accurate — and often reduce your tax bill simply by catching legitimate deductions.

If you are self-employed, review your estimated taxable profit, expected tax liability, and whether payments on account will be manageable. Many sole traders underestimate their tax bill simply by not reviewing numbers until the year is finished. Even a simple check now helps plan for January and July payment deadlines.

This is the most important point. Use this year end as a reset to implement: monthly or quarterly financial reviews, simple profit forecasting, a director remuneration plan, and regular tax planning check-ins. When you stay close to your numbers, you avoid last-minute panic and make better decisions all year.