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Tax Tips for the New Year: How to Get Your Finances in Shape for 2025

Tax Tips for the New Year: How to Get Your Finances in Shape for 2025

As we head into 2025, it’s the perfect time for small business owners in the UK to review their finances and prepare for the year ahead. By taking a little time now, you can make tax season easier and ensure your business is on track to save where it can. Here are some practical tax tips to help get your finances in order for 2025.

1. Organise your business records

One of the best ways to prepare for tax season is to keep your records accurate and up-to-date throughout the year. Good record-keeping means you can file your tax return smoothly and reduce the chance of missing any eligible expenses. To get started:

A little effort now can save a lot of time and stress later.

2. Maximise tax deductions and allowances

It’s important to take full advantage of any tax deductions or allowances available to your business. In 2024/2025, there are a few key areas where you could save:

Reviewing your expenses regularly ensures you don’t miss out on anything.

3. Stay on top of tax reliefs and grants

The UK government offers a range of tax reliefs and grants to support small businesses, so it’s worth staying informed. Some options for 2024/2025 include:

Make sure to regularly check for new reliefs or grants that could benefit your business.

4. Prepare for your Self-Assessment tax return

If you're a sole trader or partner, your self-assessment tax return is due by 31 January 2025. Here’s how to stay on top of it:

If you're unsure about anything or want to avoid mistakes, consider working with an accountant to get it right.

5. Plan for National Insurance contributions (NICs)

National Insurance Contributions are another important part of your tax planning. Whether you're a sole trader or run a limited company, here’s what you need to know:

Make sure you account for NICs when planning your cash flow, so you’re not caught off guard when payment time comes.

6. Consider pension contributions

Pension contributions are a smart way to save on taxes while preparing for the future. As a business owner, you can:

If you’re considering making pension contributions, it’s best to do so before the end of the tax year (5 April 2025) to take advantage of the tax relief available.

7. Set clear financial goals for 2025

The start of the year is the perfect time to review your business’s financial goals. Think about:

Having clear goals in place will help you stay focused and make better financial decisions throughout the year.

8. Review your business structure

As your business evolves, it’s worth considering whether your current business structure is still the best choice. If you're a sole trader, incorporating as a limited company could provide tax advantages, such as paying yourself through a combination of salary and dividends. This could be more tax-efficient as your business grows.

Reviewing your business structure with an accountant can ensure you’re making the most of the available tax efficiencies.

Final Thoughts

Taking the time to review your finances and tax strategy early in the year can save you time, money, and stress as you move through 2025. By staying organised, claiming all the deductions you're entitled to, and planning ahead for tax payments, you can ensure your business is on the right track for the year ahead.

If you’re unsure about any of these steps or need help with your tax planning, working with an accountant can provide peace of mind and help you avoid any pitfalls. Get in touch with us today by emailing gary.summons@perkaccounting.co.uk.

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