Sophie Bennett
Why the Tax Year End Deserves a Head Start
The UK tax year runs from 6 April to 5 April, and if you are a sole trader or in a partnership, your Self Assessment return for that year is due by 31 January the following year. That sounds like plenty of time. In practice, January is when everyone else is also trying to file, and a missing receipt from eleven months ago can turn a straightforward job into a frantic one.
If you run a limited company, your accounting period end depends on your own year end, and corporation tax is normally payable nine months and one day after the period closes. Either way, the principle is the same: the earlier your records are in order, the less you pay for your accountant's time and the fewer surprises land on your desk.
Reconcile Your Bank Accounts First
Reconciliation simply means matching what your bookkeeping software says happened with what actually happened in your bank, credit card and cash accounts. Do it monthly if you can. If you have let it slide, block out a couple of hours and work through it methodically.
- Download or connect statements for every business account, covering the full period with no gaps.
- Match each transaction to an invoice, expense or transfer. Flag anything you do not recognise rather than guessing.
- Watch for personal spending that has crept into the business account. Drawings and director's loan movements need to be recorded clearly, not buried in "miscellaneous".
- Check for duplicates. Imported statements plus manual entries are a common source of double-counted income.
- Note bank charges, interest and currency differences so they are treated correctly.
A clean reconciliation is the single biggest thing you can do to speed up your year end. It also gives you confidence that your profit figure actually means something.
Gather Your Receipts and Records
HMRC expects you to keep records that support your tax return, generally for at least five years after the 31 January filing deadline for Self Assessment, and six years for limited companies. Digital copies are fine, so a photograph of a paper receipt stored in a folder is perfectly acceptable.
Rather than hunting through glove boxes and coat pockets in April, build the habit now:
- Set up one clear inbox — an email address, a cloud folder, or your bookkeeping app's receipt capture — and send everything there as it happens.
- Aim to have every business transaction backed by a document. If a receipt has faded or gone missing, ask the supplier for a duplicate.
- Record mileage as you go. A simple log of date, journey, purpose and miles is far easier than reconstructing a year of driving later. The approved mileage allowance rate is 45p per mile for the first 10,000 business miles in a tax year, and 25p thereafter.
- Keep bank statements, the invoices you have issued, and contracts or engagement letters together.
Review Your Expenses Properly
Expenses are where most small businesses leave money on the table. Being thorough is not about being aggressive — it is about claiming what the rules genuinely allow.
- Use of home: if you work from home, you can claim a flat rate of £6 per week for 25 to 50 hours, £12 for 51 to 100 hours, or £18 for more than 100 hours. Alternatively, work out a proportion of your actual costs. Pick one method and stick to it.
- Travel: business journeys only — commuting to a permanent workplace is not allowable.
- Equipment and software: many low-value items can be deducted in full in the year you buy them rather than spread over several years.
- Professional fees: accountancy, bookkeeping, insurance and subscriptions to relevant trade bodies.
- Training: allowable where it maintains or updates skills you already use in the business.
Keep a note of anything unusual. If you have bought something that feels half business and half personal, ask your accountant rather than deciding quietly on your own.
Check Your Income and Outstanding Invoices
Income is the other half of the picture, and it is easy to overlook. Run an aged debtor report and see who still owes you money. If an invoice has become genuinely irrecoverable, relief may be available — but you will need evidence of your attempts to recover it.
Also check whether you have received income outside your usual invoicing: grants, interest, rental income, or work arranged through a platform. If you made payments on account last year, confirm the amounts so your accountant can offset them correctly rather than you overpaying in January.
Hand Over to Your Accountant Early
Book a slot with your accountant well before the deadline, ideally several weeks ahead. Ask what format they would like the information in, and send a short summary of anything that changed during the year — a new vehicle, a VAT registration, a change of business structure, or a large one-off purchase.
Doing this in good time means questions get answered while there is still room to act on them. It also means you know your likely tax bill early enough to plan for it, rather than discovering it in a cold January panic. A calm, well-organised year end is not about being perfect with your paperwork. It is about doing the small things consistently, so nothing is left to the last minute.
