Survive the Summer, Win the Year: Your Q3 Cash & Tax Game Plan
- garethryan
- Jul 4
- 4 min read
Q3 Cash-Flow Survival Guide: How to Beat the Summer Squeeze & Stay Ahead on Year-End Tax Planning
For many UK businesses, Q3 (July–September) can be deceptively challenging. Staff holidays, customer slowdowns, and seasonal demand shifts can create serious cash-flow gaps. At the same time, savvy business owners know it’s also the perfect time to get ahead on tax planning for the 2025–26 financial year.
In this guide, we’ll show you how to:
Avoid the “summer squeeze” with smart cash-flow tactics
Take early action on tax planning before the year-end rush
Link short-term liquidity to long-term strategy
The Summer Cash Flow Squeeze: Why Q3 Hits Hard
Even successful businesses can experience a cash-flow crunch during summer. Key reasons include:
Delayed payments: Clients or customers often go on annual leave, pushing your invoices to the bottom of the pile.
Lower sales volumes: Hospitality, professional services, and retail businesses often see unpredictable revenue between July and September.
Steady outgoings: Payroll, rent, subscriptions, and utilities don’t take a holiday—even if your income does.
Without proper cash flow management, this seasonal dip can drain your reserves and leave you scrambling in Q4
Cash Flow Tactics You Can Implement Now
Invoice Sooner, Follow Up Faster
Don’t wait until the end of the month to invoice—send invoices immediately upon job completion or delivery. Consider setting shorter payment terms (e.g., 7 or 14 days instead of 30) and use software tools like Xero or QuickBooks to automate reminders.
Bonus tip: Offer small discounts (e.g., 2–5%) for early payments from reliable clients.
Forecast Weekly, Not Monthly
Monthly cash flow forecasting can hide problems until it's too late.
Instead, build a 13-week rolling forecast that breaks down:
Expected income
Known expenses
Tax liabilities
Payment deadlines
This lets you spot cash shortfalls weeks in advance—so you can take action early.
Delay Non-Essential Spending
If cash is tight, defer investments in new equipment, upgrades, or expansion unless they generate an immediate return. This helps preserve your working capital buffer for unexpected costs or client delays.
Ask yourself: Can this wait until October?
Cut Low-Impact Costs
Use Q3 to perform a lean audit of your recurring expenses:
Unused software licenses
Overpriced suppliers
Marketing campaigns with low ROI
Redirect those funds into cash reserves or strategic investments that support long-term profitability.
Year-End Tax Planning Starts in July—Here’s Why
While the financial year ends in April, the best tax-saving opportunities come from actions taken before December—not during last-minute January crunches.
Q3 gives you a mid-year vantage point to:
Assess profits so far
Review your salary/dividend strategy
Act on tax relief opportunities
Effective tax planning now can reduce your liability, protect cash, and eliminate January panic.
What You Can Do Now (Yes, in July!)
Review Pension Contributions
Company pension contributions are a powerful way to:
Reduce corporation tax
Boost director or staff retirement pots
Provide benefits without increasing salary costs
Make sure you're utilising your annual allowance (currently £60,000) efficiently.
Use Tax-Efficient Investments
Look into:
ISAs for directors/shareholders
Venture Capital Schemes like EIS and SEIS (great for high-growth investors)
Capital allowances on eligible equipment or software
These can lower taxable income and improve post-tax returns—but they need planning ahead.
Plan Family-Based Strategies
Use legitimate family arrangements to lower tax and increase financial efficiency:
Employ a spouse in the business (if they genuinely contribute)
Transfer assets where appropriate to make use of both partners’ tax allowances
Use Child Benefit, Gift Aid, and other household reliefs carefully
Get advice first—HMRC is sharp on compliance.
Schedule a Mid-Year Tax Review
This is the best time to sit down with your accountant for:
Profit forecasting
Dividend planning
Capital gain timing
Year-end optimisation strategy
Spending time on this now could save thousands in April.
Link It All Together: Cash Flow Feeds Tax Planning
Your cash position dictates what’s possible in terms of tax planning. When you:
Maintain steady cash in Q3
Avoid panic borrowing or fire sales
Delay unnecessary spending
.you create flexibility for investing in tax-efficient options like pensions or capital purchases later in the year.
Think of cash-flow management as your first step in building a tax-smart business.
Final Thoughts: Turn Q3 Into a Strategic Advantage
Summer doesn’t have to be slow. By tightening your cash controls and looking ahead to year-end tax planning now, you can:
Protect your working capital
Avoid January stress
Build a more resilient and tax-efficient business
Ready to Take Control of Q3? Let RGA Help You Lead, Not Lag.
Don't let summer slow your success. At RGA Accountants Ltd, we go beyond the numbers to give you:
✅ Weekly cash flow forecasting that keeps your business stable
✅ Tailored mid-year tax planning that protects your bottom line
✅ Strategic advice that helps you finish the year stronger than you started
Book your FREE Mid-Year Financial Review today—and let’s create a smarter, leaner, more profitable Q3 together.
Call us on 028 406 27730 or email gareth@rgaca.co.uk
Or visit www.rgaca.co.uk/contact to schedule your consultation
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