How to Prepare for the New Tax Year: What We’re Advising Clients Right Now

Now, we know taxes aren't exactly anyone's favorite topic. However, ignoring them won't make them go away, no matter how hard you try! Our job is to make sure you're prepared for the new tax year and can avoid those 'oh no' moments when HMRC comes knocking. With the next tax year creeping up, here's how we are advising our clients to get ahead.

1. Take a Good Look at Your Cash Flow

Think of cash flow as your business’s bloodstream; if it stops, things get messy fast.

We advise checking:

• When invoices are coming in (and when they really should have been paid)

• Any big bills looming on the horizon

• Months that feel like financial “dry spells” so you can plan ahead

  
  

Pinpointing these stress points now can really save your cash flow later down the line, when it might be too late to get on top of it.

2. Double-Check Your Payroll

Even small changes in tax thresholds or employment rules can affect your payroll.

We advise:

• Make sure employee contracts are up to date

• Update your payroll system with the new minimum wage rates or employee raises, if applicable

• Check your PAYE submissions and payments are up to date. There's nothing worse than a surprise HMRC letter...

3. Pension and Savings: Don’t Forget Your Future Self

Contributing to pensions and tax-efficient savings now is important, and you'll thank yourself later.

Tips we give clients:

• Maximise tax-efficient pension contributions, if you can afford it

• Check your workplace pension employer contribution rates for each employee

• Keep an eye on ISA or other personal savings allowances

4. Plan Dividends and Director Salaries

If you run your own company, how you take money out matters.

A few simple moves can save serious tax:

• Balance salary vs dividends for maximum tax efficiency

• Plan dividends in advance rather than “winging it”

• Ask your accountant!!

5. Keep Records in Check (Yes, the Boring Stuff)

No one likes paperwork, but good records are like a safety net:

• Update your bookkeeping (or Dext) regularly

• Keep receipts and invoices!

• Track payment/submission deadlines so nothing sneaks up on you

Think of it as preventive maintenance, like changing your oil before your car breaks down.

Bottom line: How to Prepare for the New Tax Year

Preparing for the next tax year doesn’t have to be scary. A little planning now can save money, stress, and maybe even a few grey hairs!

If you're unsure which of these affects you, make sure to contact your account manager so we can make sure you're prepared for the next tax year!