by Asim Abbas
11 November 2026 
Company year-end tax planning: a checklist for directors
Company year-end tax planning: a checklist for directors
The weeks before your company’s year end are the best time to review your tax position. Decisions made after the year end often come too late.
- Review profits against the £50,000 and £250,000 limits
- Consider capital purchases and timing
- Make employer pension contributions before year end
- Check the director’s loan account
A short review can reduce Corporation Tax, set up efficient profit extraction and avoid nasty surprises like s455 charges.
This checklist covers the main points to consider.
The year-end checklist
- Estimate profit: are you in the 26.5% marginal band between £50,000 and £250,000?
- Capital purchases: AIA or full expensing on equipment bought before year end
- Employer pension contributions: deductible when paid, not accrued
- Bonuses: accrued bonuses are deductible if paid within nine months
- Director’s loan account: clear overdrawn balances to avoid s455
- Dividends: check distributable reserves and personal tax bands
- Bad debts: write off irrecoverable debts
- Stock and work in progress: value accurately
- R&D: identify qualifying projects
- Associated companies: check how many count
Corporation tax calculator
Model year-end options.
A company expects profit of £120,000. The director makes a £20,000 employer pension contribution before the year end. Profit falls to £100,000 and Corporation Tax drops by £5,300, as the saving is at the 26.5% marginal rate. The pension contribution is free of Income Tax and NI for the director.
Pension contributions
Employer contributions must be paid, not just accrued, before the year end to be deducted in that period. They must be wholly and exclusively for the business, which is rarely an issue for working directors.
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If you owe the company money at the year end and don’t repay it within nine months and one day, s455 tax applies at 33.75%, or 35.75% for loans made from 6 April 2026. Beware of bed and breakfasting rules on repaying and re-borrowing.
Personal tax alignment
Coordinate company decisions with your personal tax year ending 5 April, especially around dividends, the £100,000 threshold and the Child Benefit charge.
See our guides to Corporation Tax rates, capital allowances and director’s loans, or HMRC’s Corporation Tax guidance.
What should I do next?
Six weeks before.
Before year end.
Avoid s455.
Frequently Asked Questions
When should I do year-end tax planning?
Ideally four to six weeks before your company year end.
Are employer pension contributions deductible?
Yes, when paid before the year end.
Can I accrue a bonus?
Yes, if paid within nine months of the year end.
What is the s455 rate?
33.75%, or 35.75% for loans made from 6 April 2026.
What is the marginal Corporation Tax rate?
26.5% between £50,000 and £250,000.
Need help with this? Wingate Accountants offers fixed-fee online accountancy support across the UK. Call 0161 531 4179 or request a quote at wingateaccountants.co.uk.
About the Author
Ali Imran
I’m Ali Imran, an accountant at Wingate Accountants. I help sole traders, landlords and directors get their returns filed early and accurately, without the last-minute panic.
