Tax Planning Strategies Before Year End: Maximizing Efficiency and Savings 

26/11/2025

Although tax planning is something many business owners prefer not to think about, giving it a small amount of attention before the end of the tax year can have a substantial positive impact on your business’s bottom line. The good news is that it doesn’t need to take much time. With just a few focused actions, you can make your business more tax-efficient and amplify the successes you’ve achieved throughout the year. In this article, we outline several practical steps to help you optimise your tax position.

A good starting point is to review your bookkeeping practices to ensure they are operating efficiently. This includes making sure you are capturing all allowable expenses throughout the year. If you are still using a manual system, switching to a cloud-based bookkeeping platform can greatly improve accuracy and convenience. Modern software often includes features such as digital receipt capture, enabling you to update your records quickly and reduce the risk of missing deductible costs.

Next, it’s worth taking time to review allowable business expenses, as defined on the Government’s website. Many business owners are surprised to learn that certain costs they never considered may, in fact, be deductible. For example, meals purchased while working away from your usual business location can be claimed as a business expense and offset against your profits.

Sole traders can find more information at: Expenses if you're self-employed: Overview - GOV.UK 

You should also consider whether your business may benefit from lesser-used reliefs, such as Research and Development (R&D) tax credits or the Enterprise Investment Scheme (EIS). While these apply to a minority of businesses, they can deliver significant tax advantages where relevant. R&D tax credits can reduce your Corporation Tax liability by up to 30%, depending on the scheme used, and this is in addition to deducting the underlying research costs as normal expenses. EIS, meanwhile, offers individual investors tax relief on qualifying investments and may provide exemption from Capital Gains Tax when shares are sold. Since these schemes have complex eligibility requirements, it is advisable to seek professional guidance before pursuing them.

Finally, consider whether you are operating under the most appropriate business structure. Although this may not affect the current tax year, reviewing it now can improve tax efficiency in future years. For instance, incorporating a business means its profits become subject to Corporation Tax, which has a main rate of 25%—significantly lower than the top additional rate of 45% Income Tax payable by high-earning sole traders. However, decisions such as incorporating a sole trader or partnership, forming a limited liability partnership, or dissolving a company to trade in an unincorporated manner involve multiple factors. These choices should not be made lightly and require careful consideration, due diligence, and often professional advice.

At Turbin and Turbin, we provide the professional guidance and support you need to carry out any of the processes discussed above. Whether it’s providing ongoing bookkeeping, analysing and processing R&D claims, or advising on incorporation and business structures, our client-focused approach ensures you have the answers and certainty you need to make informed decisions.

In preparing this article every effort has been made to ensure the content is up to date and accurate, however it is no substitute for professional advice. You should not make any decisions based solely on the information presented in this article.