End of the Tax Year: What to Finalise Before 5 April
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The end of the tax year is an important date for sole traders, limited company directors and landlords.
This year, the end of the 2025/26 tax year falls on 5 April 2026.
While the January filing deadline often gets more attention, the end of the tax year is an opportunity to review your position, make adjustments where needed, and ensure everything is accurate before the year closes. The figures up to this point form the basis of your tax calculations.
With a bit of planning, the end of the financial year doesn’t need to feel rushed or stressful. It’s simply a chance to pause, check your numbers, and move forward with confidence.
Why is the End of the Tax Year Important?
The end of the tax year determines:
- How much Income Tax you’ll pay (if self-employed)
- Your dividend and salary position (if a company director)
- Your rental income calculations (if a landlord)
- What reliefs and allowances you can claim
For sole traders and freelancers, self-employed tax calculations are based on income and expenses up to 5 April.
For limited companies, your corporation tax year end may fall on a different date, but 5 April still affects your personal tax position as a director.
In simple terms, once 5 April passes, that tax year is closed. That’s why it’s sensible to review your records beforehand to ensure everything is complete and accurate.
What to Finalise Before 5 April
If you’re self-employed, freelancing or contracting, here are the key areas to review before the end of the tax year:
- Bookkeeping
All income and expenses should be recorded properly. Cloud accounting software makes this easier, but it’s still worth checking everything is reconciled and categorised correctly.
- Allowable Expenses
Small costs add up. Whether it’s for travel, software subscriptions, professional fees or home office costs, make sure you’re claiming what you’re entitled to.
- Outstanding Invoices
Your taxable profit is based on invoiced income (depending on your accounting method). Make sure you understand what has and hasn’t been included.
- Pension Contributions
Pension contributions can reduce your taxable income. If you’re considering making one, it must be paid before 5 April to count for that tax year.
- Payments on Account
Many self-employed individuals forget about payments on account. Reviewing your expected tax position now helps you plan ahead rather than being caught off guard later.
This is where working with an end-of-year tax return accountant can bring clarity, not just in filing your return, but helping you understand the numbers behind it.
Limited Company Directors: Key Year-End Actions
If you run a limited company, the end of the tax year is also a good point to review your personal position as a director.
Here are some areas worth checking:
- Salary and Dividends: Have you taken the most tax-efficient mix of salary and dividends this year? Is there scope to declare further dividends before 5 April?
- Director’s Loan Account: If you’ve borrowed from or lent money to the company, check that your director’s loan account is accurate and compliant.
- Pension Contributions: Employer pension contributions can be a highly tax-efficient way to extract profit. These must be paid before the year ends to count.
- Capital Purchases: If the company is planning equipment purchases, you may wish to review timing in light of available allowances.
- Personal Tax Forecast: Even if your company year-end falls later, your personal tax position resets on 5 April. A quick review with your year-end accountant can ensure there are no surprises.
This isn’t about last-minute changes. It’s about making informed decisions.
Landlords: Don’t Forget These Before the Year Ends
If you own rental property, the end of the tax year is a good time to make sure everything is properly recorded.
- Reconcile Rental Income: Check all rental income has been logged accurately.
- Review Deductible Expenses: Mortgage interest (subject to current rules), repairs, letting agent fees, insurance and maintenance should all be reviewed.
- Clarify Repairs vs Improvements: Repairs are usually deductible. Improvements are treated differently. Getting this right can affect your tax bill.
- Prepare for Making Tax Digital: Making Tax Digital for Income Tax is approaching. Keeping accurate digital records now will make compliance far easier in future.
Our end-of-financial-year accounting checklist can help landlords feel confident they’ve covered everything, especially as rules continue to evolve.
A Quick End-of-Tax-Year Checklist
Over the years, we’ve noticed a few areas that often get overlooked. Work through this simple end-of-year checklist for a practical way to ensure nothing is missed.
- Bookkeeping up to date
- All income recorded
- Expenses reviewed and categorised
- Pension contributions considered
- Dividends reviewed (if applicable)
- Director’s loan account checked
- Rental income reconciled (if applicable)
- Rough tax position estimated
Need Help Before the Deadline?
At Mollan & Co, we work with contractors, landlords and growing businesses across York and the wider UK. You’ll have a dedicated accountant who understands your situation and helps you plan ahead, not just file paperwork.
If you’re looking for an experienced year-end accountant or need help with your end of year tax return, get in touch with our team. We’ll make sure everything is in hand.
Author ProfileI'm the owner and Managing Director of Mollan & Co Accountants. I'm a skilled and efficient accountant with more than 20 years of experience in the industry.
I developed valuable skills in business and commercialisation through my work in the science and technology departments within the Scottish University sector. Then, in 2001, I formed my own internet-based marketing company, producing and distributing 360° virtual reality tours for the Scottish tourism sector.
I now use my commercial skills, expert tax knowledge and first-hand experience to help other businesses grow and flourish through strong accounting practice.
Our success at Mollan & Co is directly related to the success of our clients.
