How to maximise your allowances and claim every expense, before 5th April

Here is our no-nonsense year-end checklist for small business owners and limited companies

As the tax year draws to a close, it’s easy to get caught up in the day-to-day. But for business owners who plan ahead, the period between November and March is a golden opportunity to save tax, protect your profit and set yourself up for next year, all without panic. Here’s a practical checklist to help you make the most of your allowances and claim every legitimate expense before 5th April.

1. Review your allowances, sooner rather than later

The UK tax year ends on 5th April, so whatever you do before then can meaningfully affect your tax bill. Starting early gives you time to adjust your strategy and avoid rushed decisions in March.

Ask yourself:

• Have you used your personal allowance? (For 2025/26, that’s £12,570.)
• If you’re a company director, have you drawn the most tax-efficient mix of salary and dividends?
• Have you considered your pension allowance, up to £60,000 a year and whether it’s worth topping up now? 

Why this matters – if your company has spare profit, contributing to your pension before year-end lowers your Corporation Tax bill and boosts your retirement pot.

2. Think smart about capital purchases

If you’re planning to invest in new equipment such laptops, software, furniture, buying before 5th April could reduce your taxable profit.

• Use the annual investment allowance (AIA) – many businesses can claim 100% tax relief on qualifying assets (up to £1 million).
• AIA typically applies to things like computers, tools and machinery.
• Cars are different. Unless electric, they often come under capital allowances rather than AIA. 

Tip: Don’t make a purchase just for tax’s sake. But if it’s already on your to-do list, bringing it forward could accelerate your tax relief by a whole year.

3. Don’t miss everyday business expenses

The little costs add up, but many business owners forget to claim them all. Use the checklist below to make sure you’re not leaving money on the table:

• Software subscriptions (e.g. QuickBooks, Canva, Zoom)
• Home office costs (a portion of rent, bills, phone, internet)
• Mileage, travel, or public transport
• Training, professional memberships, CPD
• Marketing, website, and advertising spend
• Client gifts (within HMRC guidelines)
• Bank fees, Stripe / PayPal charges
• Business insurance 

Tip:  Go through your bank statements line by line, many recurring expenses are fully deductible but easily overlooked.

4. Optimise salary and dividends (if you’re a Director)

For limited company owners, there’s a sweet spot between salary and dividends that keeps things tax-efficient:

1. Pay yourself a modest salary, ideally just up to the National Insurance threshold.
2. Take the rest of your income via dividends, staying within lower tax bands if possible.
3. Be mindful of the dividend allowance, which drops to £500 from April 2025.

Example: If declaring a large dividend would push you into a higher tax bracket, it may be better to delay it until after 6th April, even if waiting a few days.

5. Leverage pension contributions, this can be your secret tax weapon

Pensions remain one of the most powerful tools to reduce your personal and corporate tax burden:

• Employer pension contributions are deductible for the company.
• Personal pension contributions attract tax relief at your highest rate.
• You may be able to carry forward unused pension allowance from the last three years (if relevant).

What to check: How much of your £60,000 annual allowance have you used? Can you top up before the tax year ends?

6. Get your records ready for year-end

Before your accountant asks for documentation, make sure your books are in order:

• Reconcile your bank accounts
• Upload and organise receipts (use an app if you’re not already doing so)
• Match invoices to payments
• Review any director’s loan accounts

Why this helps: Clean, organised records don’t just make year-end smoother, they can also help you and your accountant spot tax-saving opportunities early and potentially reduce your accountancy fees.

7. Plan ahead, don’t just react

Too many small businesses leave tax and cash flow planning to the last minute. Instead, use the quieter months to build a simple financial roadmap:

• Create a cashflow forecast for the next 6 to 12 months
• Work out when major tax bills or liabilities will arise
• Decide how much profit you can reinvest
• Think ahead to your next big “payday” 

Ask yourself: “What small actions now will make next year feel easier and more profitable?”

In summary 

Here is what needs to be done before 5th April:

1. Review your allowances and income mix
2. Bring forward planned capital purchases
3. Claim all the business expenses you’re entitled to
4. Optimise salary and dividends if you’re a director
5. Make pension contributions strategically
6. Get your records fully year-end ready
7. Build a financial plan for the year ahead

Final thought 

You’ve worked hard all year so don’t let tax planning slip through the cracks. A few smart moves now can lead to a healthier bottom line, more control and a stronger start to the next tax year.

Need a little accountancy help?  Give us a call us on 01173 700 079 or e-mail hello@steppingstonesaccountancy.co.uk. You can also book a free 20-minute call with Yarka – https://calendly.com/yarka-ssa/20min