(And number 8 might surprise you!)
Welcome to the new tax year. If you’re an early bird and have already filled in your return, congratulations! If you’re not, you still have plenty of time, but don’t leave it too long! In fact, to get this new tax year off to the best possible start, we’ve put together a list of essentials. These are 10 of the most important tasks to do NOW, setting yourself up for a much better 2025-2026 tax year.
Let’s dive in – and we promise that number 8 will surprise you!
1. Review Your Financial Records
Ensure all income, expenses, and financial transactions from the previous tax year are properly documented. This is crucial for accurate tax reporting and for preparing your Self Assessment, if applicable.
2. Organise Receipts and Invoices
Sort and file any business-related receipts and invoices for easy access, especially if you’re self-employed or running a business. These records will be needed for expenses, deductions, and tax filing.
3. Assess Your Tax Liability
Review your tax liability from the previous year. If you’re self-employed, review any outstanding tax payments due, including your Class 2 and Class 4 National Insurance contributions.
4. Consider Tax-Efficient Savings & Investments
Maximise your ISA (Individual Savings Account) contributions and pensions. Ensure you’re making the most of the £20,000 annual limit for ISAs and pension contributions, especially if you want to reduce your taxable income.
5. Update Your Personal Information with HMRC for the 2025-2026 Tax Year
Make sure your contact details, income details, and any other relevant information are up-to-date with HMRC. If you’ve had any major life changes, like moving or changing jobs, notify HMRC to avoid issues down the line.
6. Check Your Tax Code
Ensure your tax code is correct. If you believe there’s a mistake, contact HMRC to amend it. This helps ensure you’re paying the right amount of tax.
7. Plan for the Next Tax Payment
If you make payments on account, calculate how much you’ll owe for the next Self-assessment and set aside money to cover it. Be sure to note the deadlines for payments.
8. Review Capital Gains Tax (CGT) Position
If you’ve sold any assets, such as property or investments, check whether you’ve exceeded the CGT allowance of £6,000 for the 2024/25 tax year. Consider making use of any unused allowances.
9. Contribute to a Pension
Consider increasing your pension contributions for tax efficiency. Pension contributions can reduce your taxable income and may result in a tax refund, depending on your overall tax position.
10. Set Up or Update Record-Keeping Systems
Whether you’re self-employed or just looking to stay organised, ensure your accounting software or record-keeping system is up to date. This will help you track expenses, income, and tax deductions throughout the 2025-2026 tax year.
Are you feeling prepared and ready for the year ahead? If some of those essentials felt a bit overwhelming, don’t panic! You don’t have to do everything yourself. There are experts on hand to make business finances a doddle. With flexible plans and support that suits you, Timewise VA could be your new best friend in 25/26. Contact us to find a plan or package that’s right for you.