The current tax year ends on 5th April 2026 — and there are just a few weeks left. Once that date passes, many tax-saving opportunities are gone for good. Here are five things you should do right now.
1. Use Your Personal Allowance
The personal allowance for 2025/26 is £12,570. If you haven’t earned this amount yet — or if a spouse or partner hasn’t — it may be worth looking at how income is structured before 5th April. Unused personal allowance cannot be carried forward.
2. Pay Yourself the Right Dividend (Limited Company Directors)
If you run a limited company, the dividend allowance is £500 for 2025/26. If your company has profits available, review whether you’ve drawn the most tax-efficient amount before the year ends. Taking too much or too little could cost you.
3. Make a Pension Contribution
Pension contributions are one of the most powerful ways to reduce your tax bill. You can contribute up to £60,000 per year and get full tax relief. Contributions made before 5th April count for this tax year. Limited companies can also make employer pension contributions directly — saving corporation tax too.
4. Check Your Annual Investment Allowance
If you’re thinking of buying equipment, vehicles, or machinery for your business — do it before 5th April to get the tax relief this year. The Annual Investment Allowance is £1 million, meaning most small businesses can write off 100% of qualifying asset purchases against profit.
5. Review Your Business Structure
Are you still a sole trader? Now is a good time to review whether operating as a limited company could save you money. In many cases, incorporating can save thousands per year through a combination of salary and dividends.
Need Help Before 5th April?
At MBSC Accountancy & Consultancy Ltd, we offer tax planning consultations to help you make the most of the remaining weeks. We serve small businesses and self-employed individuals across Surrey and the UK.
