As another financial year draws to a close, many business owners are focusing on wrapping up projects, managing cashflow, and preparing for a well-earned break. But before you sign off for the festive season, it’s worth taking some time to review your finances.

For companies with a December year-end, there’s still an opportunity to make smart, strategic moves that can improve your tax position, strengthen your balance sheet, and give you a clearer picture heading into 2026.

At Williamson & Croft, we work with clients across a range of sectors to make the most of this period, and here are ten key actions you can still take before the clock strikes midnight on 31 December.

1. Review and accelerate deductible expenses

Timing is everything when it comes to deductible expenses. If you know you’ll be incurring certain business costs early in the new year, for example, IT upgrades, marketing campaigns, or training sessions, it could make sense to bring them forward.

Purchases or payments made before your financial year-end can often be deducted from this year’s profits, reducing your corporation tax bill.

Typical examples include:

  • Office or equipment upgrades
  • Professional subscriptions or training
  • Repairs, maintenance, or small capital items
  • Marketing and advertising spend

The key is to ensure the expense is “wholly and exclusively” for business purposes. Just as importantly, make sure you have supporting documentation and that payment is made before 31 December to count in this period.

2. Review director remuneration and dividends

Your remuneration strategy should balance efficiency, compliance, and personal goals. December is an ideal time to step back and review how income has been drawn from the company this year.

Check that:

  • Director salaries are set at a tax-efficient level (often around the National Insurance threshold).
  • Dividends are within available retained profits.
  • All payments are properly declared and documented.

It’s also worth checking how recent changes to dividend and personal allowances affect your overall tax exposure. In some cases, paying an additional salary bonus before year-end may make sense, particularly if you expect profits to fall next year.

A short review now can help prevent unexpected personal or corporate tax charges later.

3. Make the most of capital allowances

Businesses investing in qualifying plant, machinery, and IT can take advantage of generous capital allowance rules.

The Annual Investment Allowance (AIA) currently provides 100% tax relief on qualifying expenditure up to £1 million per year, while the Full Expensing regime allows companies to claim immediate deductions on many types of capital investment.

If you’re planning to purchase new equipment, consider doing so before 31 December so that the expenditure falls within this accounting period. Even relatively modest purchases, such as laptops, vehicles, or office refurbishments, can add up to significant savings.

4. Maximise available allowances and reliefs

Several personal and business allowances reset at the end of the tax year (5 April), but it’s worth planning ahead to ensure nothing is missed.

You may still be able to:

  • Use up remaining dividend or capital gains allowances.
  • Make pension contributions for directors or employees.
  • Review benefits-in-kind to ensure they’re structured efficiently.

For owner-managed businesses, pension contributions remain one of the most effective ways to extract profits while saving for the future. Contributions must be paid before your accounting period ends to secure tax relief in this year.

5. Review aged debtors and creditors

A year-end review of receivables and payables helps ensure your financial statements are accurate and your cashflow healthy.

  • Chase overdue invoices before the Christmas slowdown – you’ll improve cashflow and reduce the risk of write-offs.
  • Consider whether any debts are genuinely unrecoverable; if so, they may qualify for bad debt relief.
  • Reconcile supplier accounts and ensure all liabilities are recorded.

Accurate ledgers don’t just make for cleaner accounts; they also strengthen your position if you’re seeking finance or preparing for audit.

6. Stocktake and assess work in progress

For product-based or manufacturing businesses, a physical stocktake at year-end is essential.

Identify and write down any obsolete, damaged, or slow-moving stock – these adjustments can legitimately reduce taxable profit.

Service-based businesses should also review work-in-progress (WIP). Revenue recognition is a common area of error; ensure that only work actually performed and billable by year-end is included. Overstating WIP can artificially inflate profits and create unnecessary tax exposure.

7. Review provisions, accruals, and prepayments

This is often an area where value is left on the table. Review:

  • Expenses incurred but not yet invoiced (e.g. utilities, interest, professional fees).
  • Annual costs that can be apportioned for part-year use (software licences, insurance).
  • Potential provisions for warranty claims, legal costs, or staff bonuses.

Making accurate accruals and provisions ensures that your accounts reflect a true and fair view – and can smooth taxable profits between accounting periods.

8. Don’t overlook your people

Your team is one of your most valuable assets, and year-end is a natural point to review remuneration, benefits, and morale.

If you’re considering bonuses, ensure these are agreed and communicated before 31 December so they can be accrued correctly.

You might also:

  • Review unused holiday balances and payroll reconciliations.
  • Check that P11D records are complete for benefits-in-kind.
  • Consider tax-efficient options like salary sacrifice schemes for pensions or electric vehicles.

These small steps can reduce overall employment costs while demonstrating care and transparency with your staff.

9. Double-check compliance and key deadlines

It’s easy to overlook upcoming compliance dates amid the year-end rush. Take time now to confirm:

  • VAT and PAYE submissions are up to date.
  • Corporation Tax payments and filings are scheduled.
  • Companies House information is current.
  • Any audit or review requirements are well in hand.

The weeks after the year-end can be extremely busy, so ensuring compliance now avoids unnecessary penalties and stress later.

10. Plan strategically for 2026

Once you’ve tied up this year’s loose ends, look forward.
Year-end reviews shouldn’t just be about minimising tax – they’re also a chance to shape your strategy for the year ahead.

Consider:

  • Budgeting and forecasting for cashflow and profitability.
  • Reviewing pricing, overheads, and funding structures.
  • Exploring opportunities for R&D tax relief, investment, or restructuring.
  • Assessing whether your current business structure still suits your growth plans.

Starting 2026 with clear goals and clean financial data puts you in a stronger position to make informed, confident decisions.

Final thoughts

Year-end doesn’t need to be a scramble. With the right preparation, it’s an opportunity to take control, improving tax efficiency, strengthening your financial position, and setting a strategic foundation for growth.

Even small, well-timed actions can deliver meaningful savings and operational benefits.
Whether you’re looking to tidy your books, invest in growth, or plan your next move, the time to act is now.

At Williamson & Croft, we work with clients across the UK to make the most of year-end opportunities – from tax planning and compliance to strategic financial advice.

If you’d like a tailored year-end review or guidance on optimising your December close, get in touch with our team.

We’ll help you identify what can still be done this year and make sure you’re ready for a strong start in 2026.