Financial Planning Tips for the New Tax Year

The 2025/26 tax year has officially begun. But for many small and medium business owners, it's just another date in the calendar. While some haven’t yet submitted their 2024/25 tax return, this is actually one of the best times of year to get proactive about your finances.

Financial planning at the start of a new tax year can help reduce stress later, improve cash flow, and even save you money. Whether you're a sole trader or running a growing limited company, having a clear financial strategy now will set you up for success over the next 12 months.

In this blog, we're sharing some practical tips to help you plan with confidence for the tax year ahead.

Review Your Business Structure

Let's start with the basics. Is your current business structure still working for you?

As your business evolves, it might be more tax-efficient to switch from sole trader to limited company, or vice versa. Limited companies pay Corporation Tax whereas sole traders are taxed via Self Assessment, so if your profits are rising, it’s worth running the numbers.

Make the Most of Allowances and Reliefs

The new tax year means a fresh set of tax allowances – and you don’t want to miss out.

For example, for 2025/26:

• The Personal Allowance remains at £12,570.

• The Dividend Allowance has dropped to £500.

• The Capital Gains Tax annual exempt amount is £3,000.

Plan for Key Dates and Cash Flow

The earlier you prepare for your tax and VAT deadlines, the smoother your year will run.

For example, 31 January 2026 is the deadline to file your 2024/25 Self Assessment and pay any tax owed. But by preparing early, you’ll have more time to save and reduce the risk of surprises.

If you’re VAT-registered, your deadlines fall one calendar month and 7 days after your VAT quarter ends – so add those to the diary.

You might like: Key Dates for the 2025/2026 Tax Year.

Switch to the Better Accounting Software

The move towards digital tax is speeding up, especially with Making Tax Digital for Income Tax (MTD ITSA) starting from April 2026 for self-employed individuals and landlords earning over £50,000.

Get ahead by moving to MTD-compatible software now, and avoid last-minute panic. It’ll also give you a better grip on your business finances year-round.

Set Aside Money for Tax

No one likes a surprise tax bill so it’s smart to set funds aside each month.

As a rule of thumb, aim to save around 20–30% of your profits to cover Income Tax and National Insurance (more if you're VAT registered or a limited company with Corporation Tax to consider).

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From setting budgets to using the right software and making use of tax allowances, a little early action goes a long way. Need a helping hand with your business tax planning for 2025/2026? Get in touch today with Catherine on 01423 431 889 or email catherine@bctaccountants.co.uk for your FREE consultation call.

Please note: all stats are accurate for the 2025/26 tax year.