Now Is the Time to Plan Your 2025/26 Self Assessment
- Angela Li
- 1 day ago
- 2 min read
As the end of the UK financial year approaches, now is the time to start preparing for your tax obligations. The UK tax year runs from 6 April to 5 April, and leaving tax planning until the last minute can lead to unnecessary stress, missed reliefs, and even penalties. Whether you are an individual taxpayer, self-employed professional, company director, or business owner, early preparation is key to staying compliant and optimising your tax position.
Review Your Income and Expenses
Start by gathering all relevant financial records. This includes employment income (P60 or P45 forms), dividend statements, bank interest, rental income, and any other sources of earnings. For the self-employed and business owners, ensure that bookkeeping is up to date and all allowable business expenses have been properly recorded. Accurate records not only make filing easier but also reduce the risk of errors.
Maximise Available Allowances and Reliefs
Before the tax year closes, review whether you have fully used available allowances. These may include your Personal Allowance, ISA allowance, pension contributions, Capital Gains Tax annual exemption, and dividend allowance. Making additional pension contributions or ISA investments before 5 April, for example, can provide valuable tax advantages.
Plan for Capital Gains and Dividends
If you are considering selling assets such as shares or property, timing can significantly affect your tax liability. You may wish to utilise your annual Capital Gains Tax exemption before the tax year ends. Similarly, company directors may review dividend strategies to ensure efficient use of personal allowances and lower tax bands.
Prepare for Self Assessment Deadlines
Although the Self Assessment filing deadline (31 January) may seem far away, early preparation allows you to understand your tax position in advance. Knowing how much tax you owe well before the deadline helps with cash flow planning and avoids last-minute surprises.
Seek Professional Advice Where Needed
Tax rules can be complex and subject to change. Consulting with an accountant or tax adviser before the end of the financial year can help identify planning opportunities and ensure compliance with current legislation.
In short, proactive planning before 5 April can save time, reduce risk, and potentially lower your tax bill. The sooner you begin reviewing your position, the better prepared you will be for the year ahead.
Comments