The 2026/27 tax year ends on 5 April 2027. Some allowances cannot be carried forward, while rushed transactions can create commercial or tax problems. Start early enough to confirm eligibility and complete any action properly.
Review income and company extraction
Estimate salary, profits, dividends, rent, savings, pensions and benefits. Pay attention where adjusted net income may exceed £100,000 because the Personal Allowance tapers. Company owners should review salary, dividends, pension contributions, director’s loans and company cash together. Dividends require distributable profits and proper records.
Pensions, investments and gains
Confirm pension annual allowance, tapering, earnings and carry-forward before a major contribution. Review ISA capacity and investment suitability separately. The individual Capital Gains Tax annual exempt amount is £3,000 for 2026/27; consider expected gains, losses, timing and reliefs before a disposal.
Business expenditure
Check whether planned expenditure is revenue or capital and when it is treated as incurred. The Annual Investment Allowance is up to £1 million for qualifying plant and machinery, with separate conditions for full expensing and first-year allowances. Do not accelerate spending the business does not need.
Records and the next year
Reconcile bank accounts, payroll, VAT and director’s loans. Identify missing invoices and review evidence for expenses and reliefs. Update budgets for payroll and tax changes, and make sure MTD Income Tax processes are ready where applicable.
151
