For many business owners, tax planning happens after the year is over, when the books are closed, profits are calculated, and the tax bill lands on the desk. But waiting until then often means missed opportunities. The most effective tax strategies aren’t about reacting; they’re about anticipating.
As we look ahead to the next tax year, proactive planning is more important than ever. With shifting rates, evolving regulations, and the growing need for both business and personal wealth strategies, business owners who engage with their advisors before the year-end will be in a stronger financial position.
We’ll explore why pre-year-end planning matters, how to prepare for a productive meeting with your accountant, and the long-term benefits of a tax strategy.
Book a pre-year-end review
One of the most valuable steps you can take is meeting with your accountant a few months before your year-end. A pre-year-end meeting gives you the chance to:
- Forecast likely profits and tax liabilities.
- Spot opportunities for tax relief or allowances while there’s still time to act.
- Discuss both your personal and business goals to ensure your tax strategy supports them.
Think of this meeting as an investment; it often leads to savings that far outweigh the time and cost involved.
Maximise allowances and reliefs
Every year, individuals and businesses miss out on legitimate tax savings simply because they don’t act in time. For 2025/26, make sure you are making full use of:
- Annual investment allowances for capital purchases.
- Pension contributions reduce both personal and corporate tax.
- Dividend and personal allowances, particularly if tax rates are set to change.
- Research and development (R&D) credits or other reliefs available to your industry.
Your accountant can help you decide whether accelerating or deferring expenditure will work best for your situation.
Review your business structure
Is your current setup still the most tax-efficient? As tax legislation evolves, the structure that worked five years ago may no longer be optimal. A review can highlight whether:
- Operating as a limited company offers more benefits than being a sole trader.
- A holding company or group structure could reduce exposure and improve efficiency.
- Employing family members or changing how profits are distributed could lower taxes.
Small adjustments now can have a big impact on your future tax bills!
Plan for personal wealth and succession
Tax planning isn’t just about your business; it’s about your future. For many owners, wealth is tied up in the company, so consider:
- Inheritance tax planning to protect family wealth
- Succession planning if you intend to pass on the business
- Exit strategies if retirement or sale is on the horizon
A long-term plan ensures that you don’t just save tax today, you also secure your financial independence tomorrow.
Keep an eye on the changing rules
Tax laws rarely stand still. Dividend tax rates, capital gains thresholds and corporate tax rules may all shift in 2025/26. Staying informed and adjusting your plans accordingly can mean the difference between overpaying and being fully tax-efficient.
Our final thoughts
Getting ahead of the curve isn’t about finding loopholes; it’s about being proactive, organised, and strategic. A pre-year-end review, smart use of allowances, a check on your business structure, and clear succession planning can all make a measurable difference.
By starting early and working closely with your advisors, you’ll not only minimise your 2025/26 tax bill but also put yourself in a stronger position for the years ahead. Get in touch with your local office to book your year-end review today!
