Smart Year-End Tax Planning to Boost Your Savings
- garethryan
- 16 hours ago
- 3 min read
As the tax year draws to a close, now is the perfect time to take stock of your financial position and ensure you are making the most of every allowance and relief available to you. Proactive year‑end tax planning can significantly reduce your tax bill, improve cash flow, and put you in a stronger position for the year ahead.
At RGA Accountants, we work closely with individuals and business owners to help them stay tax‑efficient, compliant, and confident. Below is a practical overview of key areas to consider before the tax year ends.
Understand Your Tax Allowances
Tax allowances are amounts you can earn or claim before tax becomes payable. Making full use of these allowances is one of the simplest ways to reduce your tax liability.
Key allowances to review include:
Personal Allowance – The amount of income you can earn tax‑free. This may be reduced for higher earners, so early planning is essential.
Marriage Allowance – If eligible, transferring part of your unused personal allowance to your spouse or civil partner can reduce their tax bill.
Dividend Allowance – For company directors and shareholders, understanding how dividends are taxed and using the allowance efficiently can lead to savings.
Capital Gains Tax Allowance – Planning the timing of asset disposals can help minimise capital gains tax.
Failing to review these allowances before the year end can mean missing out on valuable tax savings.
Make the Most of Available Tax Reliefs
Tax reliefs are designed to encourage certain activities, such as saving for retirement or investing in growth. Common reliefs that individuals and businesses should consider include:
Pension Contributions – Contributions may attract tax relief and reduce your taxable income.
Gift Aid Donations – Charitable giving can provide tax benefits for both individuals and higher‑rate taxpayers.
Trading Allowance – Useful for small amounts of self‑employed or side income.
Business‑specific Reliefs – Including reliefs for capital investment, research and development, or losses carried forward.
Understanding which reliefs apply to your situation can make a meaningful difference to your overall tax position.
Review Business Income Thoroughly
For business owners, directors, and the self‑employed, an accurate review of income is critical. This includes:
Ensuring all income is correctly recorded in the right accounting period
Reviewing invoicing and payment timing
Considering whether income can be deferred or accelerated (where appropriate and compliant)
A clear picture of your income allows for better planning and avoids unexpected tax liabilities.
Claim All Eligible Business Expenses
One of the most common ways businesses overpay tax is by failing to claim all allowable expenses. Reviewing your expenses before the year end ensures nothing is missed.
Common allowable expenses include:
Office and home‑office costs
Travel and mileage (where allowable)
Professional fees and subscriptions
Software, equipment, and technology costs
Marketing and advertising expenses
Keeping good records and understanding what qualifies as a legitimate business expense is essential to staying compliant while remaining tax‑efficient.
Why Year‑End Planning Matters
Year‑end tax planning is not just about reducing tax; it is about gaining clarity, avoiding last‑minute stress, and making informed financial decisions. With the right planning, you can:
Reduce your tax liability legally and efficiently
Improve cash flow
Avoid penalties and errors
Plan confidently for the year ahead
Seek Professional Advice
Tax rules and allowances can be complex, and they change regularly. What works for one individual or business may not be suitable for another. That is why professional advice is invaluable.
RGA Accountants LTD specialises in helping individuals, sole traders, and businesses maximise their tax efficiency while remaining fully compliant with HMRC requirements. Our proactive, personalised approach ensures no allowance, relief, or expense is overlooked.
If you want peace of mind and confidence that your tax affairs are optimised, now is the time to act.
Contact RGA Accountants LTD today to arrange a year‑end tax review and discover how much you could save.