End-of-Year Tax Planning for Mansfield Businesses
- Brealey + Newbury
- Nov 17
- 5 min read
As the tax year draws to a close, now is the ideal time to make sure your business is running efficiently and tax-smart. Proactive planning can make the difference between scrambling to meet deadlines and entering the new financial year confident and organised.At Brealey & Newbury, our team of experienced small business accountants in Mansfield helps local businesses prepare ahead, saving time, stress, and money.
What Is End-of-Year Tax Planning for Small Businesses?
End-of-year tax planning means reviewing your finances before your accounting year closes to ensure you’ve maximised allowances, claimed eligible expenses, and set aside enough for upcoming tax bills. It’s about being proactive, tidying your records, checking deadlines, and reducing unnecessary liabilities before it’s too late.
Why End-of-Year Planning Matters
Many small businesses focus on meeting deadlines, but fewer use the year-end as a chance to improve their tax position. A quick mid-to-late year review helps you:
Avoid last-minute errors and penalties.
Identify allowable deductions that reduce your tax bill.
Improve cash flow by planning for Corporation Tax or Self Assessment.
Make strategic investments while still in the current accounting year.
Having a clear view of your financial position now gives you time to act, not just react.
Getting Your Books in Order
A well-organised year-end starts with accurate records. Reconcile your bank accounts, credit cards, invoices, and expenses. Ensure that every transaction is categorised correctly and that your accounting software or spreadsheets are up to date.
This is also the perfect time to review your Making Tax Digital (MTD) compliance and ensure all systems are submitting correctly. Clean records mean your accountant can focus on strategy and savings, not chasing missing receipts.
Claiming Allowable Expenses Correctly
Many business owners miss out on legitimate tax deductions simply because they don’t record them properly. Allowable expenses might include:
Home working costs (where applicable).
Business travel, fuel, and mileage.
Staff training and professional development.
Professional fees and subscriptions.
Repairs and maintenance of equipment or premises.
Avoid mixing personal and business costs, and keep receipts or digital copies for all claims. Even small recurring expenses add up to meaningful savings at year-end.
Capital Allowances: Timing Is Everything
If you’re planning to buy equipment, vehicles, or other business assets, the timing of the purchase can make a difference. The Annual Investment Allowance (AIA) allows you to claim 100% of qualifying expenditure up to a generous limit in the same tax year.
Purchasing assets before your year-end can reduce your taxable profits now, while deferring until next year delays the benefit. Speak to your accountant about what qualifies and whether it’s better to buy before or after your year closes.
Dividends, Salaries and Director Pay
For limited company directors, striking the right balance between salary and dividends is key to tax efficiency. Paying a small salary up to the National Insurance threshold and topping up income with dividends can reduce overall tax, but thresholds and rates change yearly.
Ensure all payments are documented properly before the year-end. Late or misclassified payments can trigger unnecessary tax or compliance issues.
Using Losses and Reliefs Wisely
If your business has experienced a challenging year, trading losses may still offer value. These can sometimes be carried back or forward to offset against profits, reducing tax across multiple years.
Other reliefs, like Research & Development (R&D) credits for eligible businesses, can also provide significant savings. Even if you’re not sure whether you qualify, a brief review with your accountant can clarify your options and ensure no opportunity is missed.
VAT Checks and Threshold Awareness
The current VAT registration threshold remains a key consideration for many growing businesses. If your turnover is approaching it, plan ahead to register or consider whether the Flat Rate Scheme might be more efficient.
Existing VAT-registered businesses should double-check:
All returns are submitted and reconciled.
MTD software is functioning correctly.
Output and input tax are accurately recorded.
Small errors now can cause big headaches later, especially if HMRC requests evidence during an audit.
Payroll, PAYE & Pension Contributions
Payroll deadlines don’t pause for year-end. Check that your RTI (Real Time Information) submissions are up to date and match your financial records.
Consider the timing of any staff bonuses or directors’ pension contributions, making them before the year-end can increase allowable deductions. Confirm that your pension auto-enrolment duties are being met and contributions are up to date for all eligible employees.
Corporation Tax Provisioning
Corporation Tax is due nine months after your company year-end, but it’s best to plan early. Work out a rough provision based on current profits and set that money aside in a separate account. This prevents nasty surprises later and helps keep your cash flow stable.
Your accountant can also review whether earlier payments or strategic spending can legitimately reduce this figure.
Personal Tax and Self-Assessment Reminders
If you’re a sole trader or company director, now’s the time to gather your personal tax records too. Submitting your Self Assessment return early has two advantages: you’ll know exactly what you owe and can plan your cash flow accordingly.
The 31 January payment deadline often catches people off guard. Filing early removes stress and may even reveal refunds from overpaid tax or student loans sooner.
Budgeting and Planning for the Year Ahead
Once your accounts are finalised, use the data to plan ahead. Create a simple forecast for the next 12 months, factoring in rising costs, staffing needs, and potential growth areas.
Understanding seasonal patterns helps smooth cash flow and avoid future shortfalls. Your accountant can help you model best and worst-case scenarios, especially useful in uncertain economic conditions.
Mansfield Focus: Local Business Trends
Mansfield and wider Nottinghamshire have a diverse economy of tradespeople, retailers, and service providers. Many businesses experience seasonal slowdowns over winter and spring, followed by summer recoveries.
This makes year-end an ideal time to stabilise finances, manage cash reserves, and plan for the next cycle. Local small business accountants understand these regional trends and can tailor advice to your specific industry.
10 Smart Year-End Actions to Take This Week
Reconcile all bank and credit card accounts.
Review outstanding invoices and chase payments.
Check VAT and PAYE submissions are complete.
Record all allowable expenses.
Review capital purchases before the year-end.
Set aside Corporation Tax provisions.
Plan director pay and dividend withdrawals.
Update payroll and pension records.
Forecast next year’s cash flow.
Book a tax planning review with your accountant.
Frequently Asked Questions
What expenses can I claim at year-end?
Typical business expenses include travel, phone bills, insurance, and professional subscriptions. The rule of thumb: they must be wholly and exclusively for business use.
When should I make capital purchases for tax purposes?
Before your financial year-end, if you want to include them in this year’s allowances. Check timing with your accountant to ensure it fits your cash flow.
Do I need to submit my tax return early?
You don’t have to, but doing so gives you certainty over what’s owed and avoids the January rush.
What happens if I miss the Corporation Tax deadline?
Late filing penalties start immediately, and interest accrues daily. Preparing early avoids costly fines.
How can a small business accountant help with year-end planning?
They’ll identify missed allowances, manage your records, and ensure your tax position is optimised, saving you time, stress and unnecessary expense.
Plan Ahead with Brealey & Newbury
A well-prepared year-end review isn’t just a compliance task, it’s an opportunity to improve efficiency, reduce tax, and plan confidently for the year ahead.
Contact Brealey & Newbury, Mansfield’s trusted small business accountants, to book your end-of-year financial review. Our friendly team can help you understand your numbers, prepare for tax deadlines, and make informed decisions for growth.
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