Year-End Tax Planning Checklist for Directors

Company year-end checklist

1. Make employer pension contributions — must be paid (not just resolved) before year-end to be deductible in this period.
2. Prepay allowable expenses — subscriptions, training courses, equipment ordered before year-end can often be deducted this period.
3. Purchase equipment — the Annual Investment Allowance (£1m) gives 100% first-year deduction on qualifying plant and machinery purchased before year-end.
4. Review your director's loan account — ensure any overdrawn balance will be cleared within 9 months of year-end, or prepare for the S455 charge.
5. Check your profit level — if you're just above £50,000, a pension contribution can bring you into the small profits rate (19% vs effective 26.5%). The saving can be significant.
6. Declare dividends — if you want dividends in this tax year, ensure they are declared and paid (or formally declared as immediately due) before 5 April.

Personal tax year (by 5 April)

1. Use your £500 dividend allowance — if you haven't taken any dividends, a small dividend now wastes none of the allowance.
2. Use your ISA allowance — £20,000 for 2026-27. Investment returns inside an ISA are completely free of income tax and CGT.
3. Check your adjusted net income — if approaching £100,000, a personal pension contribution or Gift Aid donation reduces the figure and may restore some personal allowance.
4. Review your Self Assessment position — ensure you have records of all dividends, salary, and any other income for the year's return.