Top Tax Tips to Start the New Year Right

Practical tax tips to help you start the year on the right foot.

Top Tax Tips

Take stock of your finances and make sure your tax planning is working as hard as you are. Our practical tax tips will help you start the year on the right foot.

Tax Planning

A new year is a great time to take stock of your finances and make sure your tax planning is working as hard as you are. We work with lots of business owners who are brilliant at running their businesses but, understandably, don’t always want to spend their evenings thinking about tax.

Here are some practical tax tips to help you start the year on the right foot.

Review your director salary and dividends

The most tax-efficient mix of salary and dividends can change from year to year as tax thresholds and rates move. What worked last year might not be optimal now, so it’s worth reviewing your set-up early rather than realising too late.

Make the most of pension contributions

Company pension contributions are usually tax-deductible and don’t attract National Insurance. They’re a smart way to extract profits while planning for the future. Just make sure contributions stay within annual allowance limits.

Claim all allowable business expenses

It sounds obvious, but we still see business owners missing out on legitimate claims. Things like home office costs, software subscriptions, professional fees and even some mobile phone costs can add up over the year. If you’re unsure what counts, ask before you assume it doesn’t.

Plan for corporation tax early

Corporation tax bills can be a shock if you don’t plan ahead. Setting aside money monthly based on projected profits can help smooth cash flow and avoid nasty surprises. Early planning also opens up opportunities to reduce your tax bill.

Use capital allowances wisely

If you’re planning to invest in equipment, vehicles or technology, timing matters. Capital allowances can significantly reduce your taxable profits, but the rules can be fiddly. Getting professional advice before you buy can make a real difference.

Don’t forget personal tax planning

Your company doesn’t exist in a vacuum. Personal allowances, dividend tax bands and family circumstances all play a role. Joined-up planning often saves more tax than looking at the company in isolation.

Need a hand getting your tax planning sorted?

We help business owners across Norfolk and beyond take control of their tax with clear, practical advice.

Get in touch with Swinton Accountants today for a friendly, no-pressure chat. Call 01603 812131 or email enquire@swintonaccountants.co.uk