With the end of the tax year on 5 April approaching, now is the time for small business owners across Surrey to make the most of every available allowance. A little planning in the final weeks can make a significant difference to your tax bill — and help you head into the new year with confidence.
1. Use your annual allowances before they reset
- Use your £20,000 ISA allowance (or your spouse's)
- Maximise pension contributions — up to £60,000, with full tax relief
- Use your £3,000 annual gift exemption for inheritance tax planning
- Consider company pension contributions as a director to reduce corporation tax
2. Review your salary and dividend split
If you operate through a limited company and have not reviewed your remuneration structure this year, speak to your accountant before 5 April — adjusting your final dividend declaration now could still save you money.
3. Bring forward business expenditure
If you are planning to invest in equipment, software or other assets, consider purchasing before your year end. The Annual Investment Allowance allows businesses to deduct the full cost of qualifying plant and machinery — up to £1 million — in the year of purchase.
4. Check R&D tax credit eligibility
Many Surrey businesses are unaware they qualify. If your business has spent time developing new products, processes or software, you may be able to claim a significant tax reduction or cash credit from HMRC.
5. Get records in order for Making Tax Digital
Year end is a natural point to switch to cloud accounting software if you have not already. Keeping digital records from the start of the new year will make quarterly MTD submissions significantly simpler.
6. Consider loss relief if it has been a difficult year
If your business has made a loss, it may be carried back against earlier profits, offset against other income, or carried forward. The rules differ depending on your structure, so discuss this with your accountant before the year closes.
Talk to us about your situation
Our chartered accountants work with small businesses, landlords and contractors across Surrey, Kent and Sussex. Get in touch for a free initial consultation.
