Start the New Tax Year Right: A Practical Checklist
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With the new tax year starting on 6 April 2026, it’s an ideal time to check that your business finances are in order. The start of a new tax year is time to check your systems are working properly and your plans for the year ahead are clear and realistic.
Follow our accounting checklist for small businesses to start the new tax year with confidence.
Review Last Year Before You Move Forward
Before setting new business targets, it’s always worth reflecting on the year just gone.
- Were your profits higher or lower than expected?
- Did you face any unexpected tax bills?
- Were there periods where cash flow felt tight?
- Did anything take you by surprise?
If you’ve already worked through your year-end review, this is the ideal moment to carry those lessons into the new tax year.
For more detail, read our guide on what to finalise before the end of the tax year.
Make Sure You’re Ready for Making Tax Digital (MTD)
From April 2026, Making Tax Digital will apply to sole traders and landlords with combined annual income (before expenses) over £50,000. The start of the tax year is the ideal time to check that your systems are ready.
Practical start-of-year actions for MTD:
- Check your bookkeeping software is MTD-compliant
- Move away from spreadsheets if you’re still using them
- Ensure your records are fully up to date
- Review how you track income and expenses
- Get clarity on how quarterly submissions will work
Still wondering whether MTD applies to you? Read our dedicated guide for more detail about who qualifies, what software you’ll need, and what to do next.
Update Your Budget and Cash Flow Forecast
A new tax year is a reset point for financial planning.
With rising costs, seasonal fluctuations and (for contractors) variable income between projects, cash flow forecasting matters now more than ever.
Take time to update your budget by:
- Setting realistic revenue targets
- Reviewing major supplier costs
- Planning for VAT and tax payments
- Building a sensible buffer
If you already have a payment plan in place with HMRC, the start of the tax year is a good time to review it and make sure it still reflects your current position.
Check Your Salary, Dividends and Tax Strategy
For limited company directors, the start of the tax year is also a good time to review how you take income from your business.
Company directors should:
- Review your salary versus dividend structure
- Consider tax-efficient drawings
- Assess pension contributions
- Check upcoming corporation tax deadlines
Sole traders should:
- Set aside tax regularly
- Review your payments on account
- Forecast your expected profit
By building tax planning into your routine, you avoid unexpected pressure and last-minute decisions later in the year.
Refresh Your Bookkeeping Systems
Strong bookkeeping makes everything else simpler.
You should:
- Reconcile all accounts
- Review your accounting software (Xero, QuickBooks or others)
- Organise digital receipts and documentation
- Confirm Making Tax Digital compliance
If your current system feels clunky or unclear, this is the right moment to fix it. Many businesses we support in York and Yorkshire move to cloud-based accounting because it saves time throughout the year.
Check for Tax or Regulatory Changes
Each new tax year can bring adjustments to thresholds, allowances or compliance requirements. It’s worth checking for any new:
- Income tax thresholds
- Dividend allowance updates
- VAT changes
- IR35 considerations for contractors
- Landlord tax rules
This is particularly important for contractors navigating IR35, landlords managing multiple properties, and growing limited companies balancing salary and dividends.
Set Clear Financial Goals for the Year Ahead
Once compliance is in order, shift your focus to growth.
Ask yourself whether this year you’ll be:
- Hiring new staff
- Investing in new equipment
- Expanding into new markets
- Purchasing any property
- Planning for a future exit
The start of the tax year is an ideal time to align financial goals with practical planning.
Decide If Your Current Accountant Is Still Right for You
The start of the tax year is also a natural point to review your professional support.
Do they respond promptly? Do they explain things clearly? Do they offer proactive advice, or simply file paperwork?
A supportive accountant should make your role easier, not more complicated. At Mollan & Co, we’ve built long-term relationships with businesses in York and the surrounding areas by offering clear advice, cloud-based systems and one-to-one support.
A Practical Checklist
Here’s a start-of-tax-year checklist to work through:
- Review last year’s performance
- Confirm Making Tax Digital readiness
- Update your budget and cash flow forecast
- Review salary, dividends or tax set-asides
- Reconcile your bookkeeping systems
- Check for new tax rules
- Set financial goals for the year ahead
Start the Year With Confidence
With a clear checklist and the right support, the start of a new tax year becomes an opportunity to strengthen your finances and move forward with confidence.
Whether you’re a contractor, landlord, sole trader or growing limited company, having a dedicated accountant who understands your situation makes the year smoother from day one.
If you’d like support reviewing your position, improving your systems or planning for the year ahead, our team at Mollan & Co is here to help. Get in touch for a straightforward conversation about what would make this year smoother.
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.
