Are You Giving Too Much to HMRC? Take Action Before April 5th!

Year-End Tax Planning for Business Owners: How to Keep More of Your Profits

The end of the tax year (5 April 2025) is fast approaching, and if you run a business, now is the time to make smart moves to keep more money in your pocket. Tax planning isn’t just for big corporations—small businesses and self-employed individuals can also take advantage of legitimate tax-saving strategies to reduce their bills.

Here’s how you can maximise your tax savings before the deadline:

1. Claim Every Allowable Expense

One of the easiest ways to cut your tax bill is by ensuring you claim all eligible business expenses. Many business owners miss out on deductions simply because they don’t realise what qualifies.

Common tax-deductible expenses include:

✅ Office costs – rent, utilities, phone bills, internet
✅ Business travel & mileage – fuel, train tickets, hotels
✅ Equipment & software – laptops, tools, accounting software
✅ Marketing & advertising – website costs, social media ads, printing

💡 Tip: Even small expenses add up. A quick review with AEL Markhams could uncover costs you’ve overlooked!

2. Use Capital Allowances Before the Deadline

Thinking of upgrading your business equipment? Making purchases before 5 April 2025 could reduce your taxable profit and save you money.

Under the Annual Investment Allowance (AIA), you can claim up to £1 million in tax relief on qualifying purchases such as:

🔹 Machinery & tools
🔹 Computers & office equipment
🔹 Business vehicles (check eligibility)

This means immediate tax relief on purchases instead of spreading deductions over several years.

3. Salary vs. Dividends – Are You Taking Money the Right Way?

If you run a limited company, the way you pay yourself can make a huge difference in your tax bill.

💷 Salaries – Subject to Income Tax and National Insurance (both employer and employee contributions).
📈 Dividends – Usually taxed at lower rates than salary but are affected by dividend tax changes.

With upcoming tax changes, now is the time to review whether your salary/dividend mix is still tax-efficient.

4. Pension Contributions – Reduce Tax & Secure Your Future

💡 Did you know that pension contributions can reduce your taxable income?

Your company can make pension contributions on your behalf, which:
✅ Reduce Corporation Tax
✅ Don’t count as personal income
✅ Help build long-term wealth

For self-employed individuals, you can claim tax relief on personal contributions up to your annual allowance.

🚀 Act before April 5th to maximise your pension contributions for this tax year!

This Blog Is Part of a 10-Part Tax-Saving Series!

This blog is just the beginning! Over the coming weeks, we’ll be sharing 10 essential tax-saving blogs covering:

🔹 Business Tax Tips – How to legally cut your company’s tax bill
🔹 Personal & Family Tax Breaks – Reduce your household’s tax burden
🔹 Investment & Savings Strategies – Grow your wealth tax-efficiently

📅 Stay tuned for expert advice on everything from VAT-saving tactics to tax-efficient property investments!

Got tax questions? Get in touch today and let’s make sure you’re not giving HMRC more than necessary!