Preparing for tax year end 2025/26
As we get closer to the end of the tax year, it’s a great opportunity to step back and review your financial situation, both personally and within your business. Acting early gives you more freedom to make thoughtful decisions and helps you avoid the extra pressure that comes with rushing.
This year‑end planning guide has been put together to walk you through the key areas worth considering before the tax year wraps up, along with upcoming changes that may affect your approach going forward.
Whether you run a business, employ staff, own property or simply want to make your personal finances more efficient, the guide is designed to offer clarity and highlight how you could achieve better financial outcomes.
Private Clients
Taking time to look over your personal wealth and the reliefs available to you can be incredibly valuable. This often includes reviewing your income tax position to see where efficiencies can be made and checking that your investment portfolio still supports both your financial goals and any tax considerations.
It’s also worth considering whether Capital Gains Tax might come into play if you plan to sell or restructure assets. Many people also find it helpful to look at their potential exposure to Inheritance Tax and explore the various reliefs and strategies that could help protect wealth for future generations.
Altogether, a thoughtful review can give you greater clarity, peace of mind and confidence that your financial plans are working as effectively as possible.
Property Tax
Property owners have a unique set of tax considerations, and reviewing these regularly can help ensure your strategy remains both efficient and future‑proof. This includes understanding how Stamp Duty Land Tax (SDLT) may apply to any recent or upcoming transactions, as well as recognising when company‑owned residential property might introduce extra reporting or tax requirements.
There may also be opportunities to reduce taxable profits through property capital allowances, particularly on qualifying investments or refurbishments. VAT remains another important area, especially for landlords, developers and those involved in more complex property arrangements, where early planning can help avoid unexpected costs.
With several changes on the horizon, including shifts to rental income tax, Council Tax surcharges and business rate reforms, taking a proactive approach can help you stay ahead.
Business Owners
For business owners, the end of the tax year is an ideal moment to take stock and ensure your business is set up for continued efficiency and long‑term success. This might involve reviewing the reliefs available to owner‑managed businesses, whether you’re thinking about profit extraction, restructuring or future succession planning. Upcoming changes to Inheritance Tax could also shape strategic decisions, particularly for those considering long‑term wealth planning or business transition.
It’s also helpful to revisit whether activities within the business are correctly categorised as trading or investment, as this can have a meaningful impact on compliance and tax outcomes.
Altogether, year‑end planning provides an opportunity to strengthen your business framework, reduce risk and build greater confidence in the future.
Employers
As we approach the end of the tax year, it’s a good time for employers to check in on a few key responsibilities and make sure everything is running smoothly.
This includes reviewing PAYE, wages, employee benefits and expense arrangements, and taking a fresh look at employment status, especially where contractors or self‑employed individuals are involved. Workforce planning may also be shaped by the Apprenticeship Levy, which, when used well, can provide real value to both employers and employees.
It’s also important to stay on top of off‑payroll working (IR35) requirements, ensuring that the right assessments and processes are firmly in place. Being aware of the key dates and deadlines throughout the year helps keep your organisation compliant and reduces the risk of any unexpected issues.
Making Tax Digital for Income Tax
Looking ahead, it’s also important to be aware that Making Tax Digital (MTD) will begin to affect many taxpayers from April 2026. From 6 April 2026, individuals with more than £50,000 income from self‑employment and/or property will be required to keep digital records and submit quarterly updates using MTD‑compatible software. This change is part of HMRC’s wider move toward a more accurate, modern and streamlined tax system. With further expansions planned in subsequent years, starting preparations early, whether that means updating your software, reviewing your record‑keeping or speaking with an adviser, can make the transition far smoother and help you stay compliant with confidence.
You can read our full Tax Year End Planning Guide here, detailing further information on how you can best prepare.
