With the end of the 2025/26 tax year now less than seven weeks away, business owners and company directors should remember that several valuable reliefs and elections must be made before 5 April. Which opportunities are about to close?
As 5 April approaches, attention typically turns to income extraction planning, capital allowances and the use of annual exemptions. For owner-managed companies, this includes reviewing the mix of salary and dividends, ensuring sufficient distributable reserves exist for planned dividends, and checking that any directors’ loan accounts are not inadvertently overdrawn.
For individuals and unincorporated businesses, the year end is a final opportunity to make pension contributions that secure tax relief for 2025/26, utilise the annual investment allowance where capital expenditure is planned, and crystallise capital gains to use the annual exempt amount before it is lost.
Employers should also review benefit planning before the year closes. Decisions on trivial benefits, bonus timing and benefit provision can affect both income tax and NI outcomes.
While some claims can be made after the year end, others depend on actions taken before 5 April. With reporting obligations under Making Tax Digital expanding from April 2026 for larger sole traders and landlords, this year end may be the last under the traditional self-assessment system for many businesses.
