Planning Tips for Business Owners: What to Do Before the New Tax Year

At Stringer Mann Chartered Financial Planners, we understand that navigating the ever-changing tax landscape can be challenging for business owners. That’s why we prioritise a client-centred approach, taking the time to understand your unique situation and goals. Our aim is to help you make informed decisions and take timely action during the remainder of the 2025/26 tax year to help protect your business and personal finances.

With the next tax year starting on 6 April 2026, now is the time to review and prepare your financial and tax plans. Here are the key actions business owners should take during the remainder of the current tax year to stay ahead of any upcoming changes and to help protect your financial goals:

1. Use your tax allowances and exemptions fully

Make sure you maximise pension contributions, ISAs, dividend allowances, R&D tax credits, and capital allowances during this tax year. With tax rates rising, using all available reliefs and allowances before the 2026/27 changes take effect can reduce your overall tax bill.

2. Plan for increased employer NICs and minimum wage costs

From April 2025, employer NICs rose to 15%, with the threshold dropping to £5,000, and the minimum wage increased by 6.7%. If you haven’t already, review your staffing costs and pricing strategy now to manage these higher expenses.

3. Review Business Relief (BR) exposure

From April 2026, a 20% inheritance tax charge will apply on BR assets above £1 million. If your business may be affected, consider making lifetime gifts or restructuring ownership before this change to reduce future IHT liabilities.

4. Reassess your remuneration approach

With NICs (National Insurance Contribution) changes now in place and further tax updates coming, it’s essential to work with your accountant this year to optimise how you draw income from your company before the next tax year starts.

5. Evaluate Capital Gains Tax (CGT) implications

CGT rates for non-residential property increased last year, with Business Asset Disposal Relief (BADR) rates rising further in 2025 and again in 2026. If you’re considering selling business assets or exiting* your business, plan your timing carefully during this tax year to limit your tax exposure.

6. Develop a tax-efficient pension drawdown plan

With most pensions set to become liable for inheritance tax from April 2027, consider whether starting or adjusting pension drawdown this year could benefit your overall tax position.

Don’t wait until the new tax year begins - take action now. Get in touch to review your situation and create a clear plan that keeps your business and personal finances on track.

Contact Stringer Mann on tel: 01442 874888, via email to: stringermann@sjpp.co.uk or visit our website to request a meeting.

The value of an investment with St. James's Place will be directly linked to the performance of the funds selected and may fall as well as rise. You may get back less than the amount invested.

The levels and bases of taxation and reliefs from taxation can change at any time. Tax relief is dependent on individual circumstances.

*Please note that advice with regard to exit strategy planning may involve the referral to a service that is separate and distinct to those offered by St. James's Place.