Written By Jonathan Palmer

End of Tax Year Checklist for Small Businesses (2026)

The UK tax year ends on 5 April 2026, and for many small business owners and sole traders, this can feel like a ticking clock. Missed deductions, unfiled records, and last-minute scrambling can lead to unnecessary stress—and potentially larger tax bills.

This end-of-tax-year checklist helps you make the most of your finances, stay compliant, and start the new tax year in control.

 

1. Review Your Profit and Loss

Before the tax year closes:

• Check your accounts to see your actual profit and loss.
• Identify high-expense areas where you might reduce costs or accelerate purchases before year-end.
• Compare performance against your targets to identify trends or missed opportunities.

Tip: Even small adjustments now can make a difference in your tax bill.

 

2. Claim All Allowable Expenses

Many business owners miss out on tax-deductible expenses simply because they haven’t reviewed them.

Common allowable expenses include:

• Office supplies and equipment
• Travel and subsistence costs
• Professional subscriptions and insurance
• Marketing, website, or software costs

Tip: Keep receipts and invoices organised—HMRC may request evidence.

 

3. Pension Contributions and Tax Relief

Making contributions to a pension scheme before 5 April can reduce your taxable profits and benefit your future retirement.

• Sole traders and directors can claim tax relief on pension contributions.
• Consider topping up contributions if you haven’t maximised relief for 2025/26.

Tip: Speak to a financial adviser to ensure contributions are within annual limits.

 

4. Review VAT and HMRC Obligations

If you’re VAT-registered:

• Check for any outstanding VAT payments
• Make adjustments before the year-end
• Prepare for Making Tax Digital quarterly reporting, starting April 2026 for businesses over £50k turnover

Tip: Treat VAT as HMRC’s money, not business cash—keeping a separate VAT account helps avoid surprises.

 

5. Bookkeeping and Record-Keeping Clean-Up

Clean, organised records save time and stress:

• Reconcile bank statements
• Ensure invoices and receipts are properly logged
• Update your accounting software or spreadsheets

Tip: Tidying up now prevents issues during tax submission and quarterly MTD reporting.

 

6. Check Your Tax Payments and Deadlines

• Review PAYE, Corporation Tax, and other liabilities
• Consider early payments if you have available cash to reduce interest or penalties
• Ensure you have a plan for the first quarter of the new tax year

Tip: A short call with your accountant now can prevent last-minute surprises.

 

 

 

In Summary:

The end of the tax year is the perfect time to get organised, reduce stress, and save money.

At Honest Accounting, we help small business owners and sole traders:

• Maximise allowable deductions
• Stay compliant with HMRC
• Plan for the new tax year

 

Ready to get your business ready for 6 April 2026?

Book a free end-of-year review with us today. Call Chay Mottley at Honest Accounting today:

Email: chay@honestaccounting.co.uk
Mobile: 07983 187204

Request a callback 

 

Honest Accounting. Simple. Efficient. Always Compliant.