5 vital tasks business owners should complete before the start of the new tax year

• Review your income – Check how much your business has earned overall and consider breaking everything down by client or service to determine what has performed well.
• Check your expenses – Make sure you’ve recorded every single business cost, such as office supplies, utility bills, and subscriptions. Also, look out for one-off costs that might increase your tax liability.
• Assess your cash flow – Identify whether you will have surplus funds at the end of the tax year, or whether short-term fluctuations could cause pressure in the coming months. 

Taking the time to assess income and expenditure well ahead of the new tax year could give you a clear picture of your financial situation.

It might also help you identify any gaps in your records, meaning you can tidy up your accounts before tax deadlines occur.

2. Make the most of any tax allowances and reliefs

Once you have this clear understanding of your business finances, you could start thinking about allowances and reliefs that could help reduce your tax liability.

Some of the areas worth considering include:

• The Annual Investment Allowance (AIA) – This allows you to claim 100% tax relief on qualifying plant and machinery, helping you secure tax savings. You can claim up to £1 million in 2026/27.
• Employment Allowance – This can reduce your employer National Insurance bill. You can claim up to £10,500 each year. 
• Director’s pension contributions – If you’re a business owner set up as an employee, making employer pension contributions into your pot can be a practical and tax-efficient way to extract profits. Since these are typically treated as a business expense, you could reduce your Corporation Tax bill while boosting your retirement savings.

Taking action before the new tax year commences could help you reduce potential tax bills and make decisions that strengthen your business. 

3. Review your business protection

Even if your focus is usually on day-to-day operations, January could be a prudent time to review your business protection ahead of the new tax year. 

Unexpected events, such as illness, the loss of an important employee, or equipment failure, could result in lost revenue or financial strain while operations are disrupted. 

Read more: 5 practical ways to protect your business from the unexpected

Even if you already have protection in place, circumstances might have changed since it was set up. 

Your business might have grown, or you may have taken on new partners or staff, which could mean your current levels of cover aren’t sufficient. As such, it’s worth reviewing your business protection now to identify any gaps. Doing so could ensure your business continues to run smoothly once April arrives and your focus is diverted. 

You may want to check key person insurance to cover the loss of vital team members or shareholder protection to ensure shares can be purchased if a partner leaves or passes away. Taking the time to do this ahead of the new tax year could give you the peace of mind that your business is equipped to handle the unexpected.

4. Prepare for Making Tax Digital

If you own a business, you likely already know that Making Tax Digital (MTD) requires VAT-registered businesses to keep digital records of transactions, submit this information quarterly to HMRC, and use compliant software such as Sage.

However, from 6 April 2026, these rules will apply to self-employed earners and landlords earning more than £50,000 a year. 

This could significantly affect the way you manage your business if you’re a sole trader, landlord, or are self-employed. 

For instance, you will need to keep accurate digital records throughout the year, which can affect your bookkeeping. 

Preparing for this now could give you time to check that your accounting system is compliant, update software, and train any staff who handle financial records.

Moreover, taking steps to get your digital records in order could reduce stress further down the line.

5. Organise your admin and record-keeping

Staying abreast of your admin and paperwork might not sound exciting, but it’s still a vital task to complete ahead of the new tax year. 

Now could be the ideal time to sort through invoices, receipts, and records, ensuring everything is up to date and properly filed. 

Even if your accounts are in good order, this could be the chance to determine whether your current filing system still works efficiently for you. 

For example, you could digitise more documents or streamline how information is shared with staff. 

Organising your admin and records ahead of April 2026 could give you clarity over your business’s finances and allow you to make more informed decisions ahead of the new tax year.

Get in touch

We could help you prepare your business for the new tax year well in advance, so you can focus on managing its day-to-day operations.

To find out more, please call us on 01822 617 960, email info@hansfordbell.co.uk, or fill in our online contact form, and we’ll be in touch.

Please note

This article is for general information only and does not constitute advice. The information is aimed at retail clients only.

All information is correct at the time of writing and is subject to change in the future.

Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.

The Financial Conduct Authority does not regulate tax planning.

Note that financial protection plans typically have no cash in value at any time and cover will cease at the end of the term. If premiums stop, then cover will lapse.

Cover is subject to terms and conditions and may have exclusions. Definitions of illnesses vary from product provider and will be explained within the policy documentation.