Every 6 April feels deceptively distant when you first flip the office calendar to January, yet the new tax year arrives faster than most owners expect. Leaving the tidy-up until the last week risks rushed figures, missed allowances, and the sort of penalties that sour otherwise healthy cashflow. In January 2025, HMRC warned that 3.4 million self assessment returns were still outstanding with just seven days to go before the filing deadline (HMRC, 2025). That snapshot shows how easy it is to let compliance slip when day-to-day trading feels more urgent.
The 2025/26 rules themselves are relatively stable – headline corporation tax remains at 25% for profits above £250,000 (HMRC, 2025) and the standard Personal Allowance stays frozen at £12,570. Nonetheless, small shifts in thresholds, benefits and reporting deadlines can add up over 12 months. With that in mind, we have put together a structured checklist to help you move early, stay organised and lock in every legitimate saving. Use it alongside our tax planning service at Calculo – if a point below prompts a query, we are only a call away.
Understand the headline changes for 2025/26
- Corporation tax bands: Profits under £50,000 continue at 19%; marginal relief applies between £50,001 and £250,000.
- Income tax freeze: Personal and higher-rate bands are unchanged, extending the impact of fiscal drag.
- National Insurance: Thresholds remain aligned with income-tax bands; confirm any directors’ annual methods with us before your first 2025/26 payroll run.
Taking stock of the main numbers now sets the tone for the practical steps that follow.
Review your expense records for accuracy
Small errors in mileage logs or staff credit-card coding often surface at year-end – precisely when time is shortest. Aim to reconcile in February:
- Mileage claims: Cross-check odometer readings vs. logged journeys.
- Software subscriptions: Cancel dormant seats before renewal.
- Supplier invoices: Prompt statements ensure VAT can be reclaimed on time.
Routine tidying avoids protracted questions from HMRC and keeps management accounts sharp.
Your new tax year payroll checklist
Payroll is usually the first area in which the new tax year rules bite. Before the first April pay run:
- Tax codes: Load the P9X notice and test-run weekly and monthly calculations.
- Directors’ NIC: Decide whether to use the cumulative or alternative annual method.
- Benefits: Update company-car CO₂ data; upload new advisory fuel rates.
- Workplace pensions: Review salary-sacrifice agreements in light of frozen thresholds to protect staff take-home pay.
A timely payroll update means employees see the right deductions from month one and you avoid corrective submissions later. If you outsource, our payroll support team at Calculo can complete the setup for you.
Check allowances and reliefs still in reach
Tax freezes make some allowances feel less generous, yet they remain valuable if actioned early. Examples:
- Annual Investment Allowance: Up to £1 million on qualifying plant and machinery still shields capital spend from corporation tax in year one.
- Directors’ loan accounts: Repay any overdrawn balances within nine months of the year-end to avoid a 33.75% s.455 charge.
- Dividend timing: For owner-managed companies, consider voting dividends before 5 April to use the remaining basic-rate band at 8.75%.
Plan these moves now rather than in March, giving your bookkeeper time to record transactions accurately.
Plan quarterly cashflow and VAT obligations
Rising costs continue to squeeze margins – 24% of UK businesses say higher employment costs would force them to raise prices (ONS, 2024). Map out VAT and corporation tax payment dates for the year so that funds are ring-fenced:
- VAT direct debits: Align filing deadlines with peak cash weeks.
- Time-to-Pay: Approach HMRC early if forecasts show a shortfall.
- Quarterly reviews: Revisit budgets against actuals and adjust price strategies promptly.
Use digital tools and data to stay organised
HMRC’s Making Tax Digital (MTD) dashboard is expanding; records kept in Excel and uploaded once a year will soon be out of date. Cloud apps can:
- Fetch bank transactions daily for smoother reconciliations.
- Attach receipts via mobile scanning, cutting paper clutter.
- Generate real-time management reports that highlight drift against thresholds.
Between March 2023 and March 2024 the number of incorporated companies rose by 0.9% (ONS, 2024); many of these new entrants start on best-practice digital platforms from day one. Established firms that have not yet switched risk falling behind competitors on both insight and efficiency.
Staying organised when the unexpected happens
Economic shocks, staff changes, or late invoices will still crop up during 2025/26. Build in resilience:
- Rainy-day fund: Aim for one month’s overheads in an instant-access account.
- Cross-training: Ensure at least two people understand each compliance deadline.
- Adviser contact: Speak to us the moment something looks off – earlier conversations keep options open.
Keeping momentum all year round
The new tax year is less a single date than a steady rhythm of obligations and opportunities. Work through this checklist before 6 April, lock each task into your diary, and revisit the notes every quarter. That disciplined approach frees you to focus on sales, people, and innovation, safe in the knowledge that HMRC deadlines, allowances and cashflow peaks are under control.