Running a business means constant trade-offs between getting things done and getting them done right. Tax is the classic example. The rules change, rates move, allowances open and close. Miss an opportunity and you overpay. Get it wrong and HMRC comes calling. That’s why many owners lean on specialist taxation accountants – we spot reliefs early, shape remuneration, and keep cashflow healthy while reducing risk.
Two points matter this tax year. First, the dividend allowance remains £500 for 2025/26, so dividends above that are taxable at your marginal rate (HMRC, 2024). Second, the VAT registration threshold is £90,000, which still catches growing micro-businesses sooner than expected (HMRC, 2024). Against a backdrop of choppy investment data – UK business investment fell 4.0% in Q2 2025 versus Q1 – timing and planning now make a measurable difference (ONS, 2025).
What specialist taxation accountants actually do
We’re not here to swamp you with forms. We focus on decisions that move the needle and keep you compliant:
- Proactive planning: Map the year’s key moves – equipment purchases, hiring, dividends, bonuses – to align with allowances and deadlines.
- Reliefs and claims: Identify what you can claim, from full expensing to R&D credits, and evidence it properly.
- Risk management: Reduce enquiry risk with clean records, reconciliations and disclosures that answer HMRC’s questions before they’re asked.
- Cashflow focus: Sequence VAT, PAYE, and corporation tax so liabilities are forecast, funded, and never a surprise.
If you want a straightforward starting point, book a quick call and tell us your top three concerns. We’ll triage them and suggest next steps.
Full expensing, capital allowances and timing
Capital allowances are often under-used. Since April 2025, companies within corporation tax can generally deduct 100% of qualifying main-rate plant and machinery in the year of purchase – full expensing – and 50% of special-rate assets in year one (HMRC, 2025; HMRC, 2025). That can transform payback periods.
A simple example:
- The plan: Spend £120,000 on qualifying kit in December.
- Without advice: Spread spend across tax years, miss the optimal profile, and drift into marginal relief at 25%.
- With advice: Advance or defer purchases to keep profits in the 19% small profits band where possible, or optimise around marginal relief. Combined with full expensing, the year-one tax saving could be £30,000+ depending on profit levels and asset mix.
Specialist taxation accountants model these scenarios and tell you when to cut the purchase order – not just if you can claim.
R&D, VAT and remuneration – where value is often left on the table
- R&D credits: From April 2024 the merged scheme provides a taxable expenditure credit at 20% for qualifying costs, set off through the corporation tax computation (HMRC, 2025). The key is defining eligible projects, capturing staff time and subcontractor costs, and writing a clear technical narrative. We prepare claims that match HMRC guidance line by line.
- VAT optimisation: With the registration threshold at £90,000 and deregistration at £88,000, monitoring rolling 12-month turnover matters. We also assess schemes – Flat Rate Scheme: Useful for low-input service businesses; Cash Accounting: Helpful when customers pay slowly; Annual Accounting: Eases admin for stable turnover. The right scheme improves cashflow and reduces admin.
- Owner remuneration: With a £500 dividend allowance and frozen personal allowance for many owners, the salary-dividend mix needs attention. We weigh employer NIC, pension contributions, and benefits in kind. Where appropriate, we consider company pension funding to reduce corporation tax while building long-term value.
Specialist taxation accountants vs doing it yourself
We respect hands-on owners. But here’s a practical comparison we see repeatedly:
- DIY records: Quarterly submissions are on time; claims are cautious; VAT is paid but schemes aren’t reviewed. Result – no penalties, but tax paid is higher than necessary.
- Advised approach: We run an annual tax planning review before your year-end. We model full expensing, review VAT schemes, optimise remuneration, and prepare any R&D claim with evidence. Result – lower effective tax rate, smoother cashflow, and reduced enquiry risk.
An anonymised client case: a specialist manufacturer with £1.8m turnover and £210k profit. We advanced £160k of plant purchases to fall within full expensing, moved them onto Cash Accounting for VAT, and documented a modest R&D claim focused on process tooling. Year-one corporation tax reduced by £41k, VAT cashflow improved by roughly £18k over two quarters, and the R&D credit added £23k to post-tax profits. Same business, better timing and evidence.
Using specialist taxation accountants to prepare for digital changes
Making Tax Digital for Income Tax starts from April 2026 for sole traders and landlords with qualifying income over £50,000, and from April 2027 for those over £30,000 (HMRC, 2025). That means digital record-keeping, quarterly updates, and a year-end finalisation. We help you choose software, set up bank feeds, and design a light process that captures invoices and expenses without fuss.
On Companies House changes, the government is tightening accuracy and transparency under the Economic Crime and Corporate Transparency Act, with more digital filing and verification across the period to 2027 (Companies House, 2025). Even where timings evolve, it’s sensible to tidy registers, director information and registered office details now. We’ll keep you updated and make sure filings are right first time.
A clear engagement process that saves time
- Discovery: We review your structure, bookkeeping, and the last two returns.
- Planning session: We map the current year – major spend, profit outlook, dividends, and cashflow constraints.
- Quarterly reviews: We track sales against VAT thresholds, check allowances usage, and adjust remuneration.
- Claim and file: We prepare corporation tax, R&D if relevant, and statutory accounts with supporting workpapers ready for HMRC or Companies House questions.
Why this matters now for SMEs
ONS reports a 4.0% quarterly fall in business investment in Q2 2025, even though levels are roughly flat year on year (ONS, 2025). When investment stutters, the businesses that plan tax well often maintain momentum – they unlock headroom for kit, people and marketing while keeping risk low. Specialist taxation accountants bring that discipline. We watch thresholds and allowances so you don’t have to, optimise purchases and claims, and keep your financial story tidy for lenders and HMRC.
Good tax outcomes are built, not guessed. For 2025/26, the dividend allowance is still £500, corporation tax tops out at 25% with marginal relief between £50,000 and £250,000 of profits, and full expensing can deliver major year-one relief on qualifying assets. Add the VAT threshold at £90,000 and the shift to digital reporting from 2026, and there’s real value in getting ahead. Our advice is simple: let specialist taxation accountants run a quick year-end and VAT review, model full expensing and remuneration, and put light-touch digital records in place.
If you’re weighing DIY against expert support, we’ll quantify the difference before you decide. Speak to us about specialist taxation accountants support for your business, and we’ll build a plan that saves time and money while reducing risk. Contact us for specialist taxation accountants advice today.