Many business owners and individuals only think about tax when a deadline approaches or a tax bill arrives. While this is understandable, leaving tax planning until the last minute often limits the options available and can result in higher overall costs.

Tax planning is most effective when it is forward-looking. Decisions made earlier in the year give more flexibility and allow planning to be aligned with real commercial activity, rather than being forced into rushed actions that may not be optimal. Last-minute planning tends to focus on damage limitation rather than improving outcomes.

A common example is pension planning. Reviewing contributions in March gives limited scope if cash flow is tight or allowances have already been used. By contrast, reviewing pension strategy earlier in the year allows contributions to be phased, employer contributions to be considered, and carry forward allowances to be used more effectively.

The same principle applies to profit extraction for company directors. Decisions around salary, dividends, and employer pension contributions are best reviewed in advance, not after profits have already been drawn. Similarly, capital expenditure planning, use of capital allowances, and timing of asset disposals are far more effective when considered ahead of time.

Another issue with last-minute planning is that it often overlooks wider consequences. Actions taken purely to reduce tax in the short term can affect cash flow, future tax years, or long-term business goals. Proper planning considers these knock-on effects.

Regular tax reviews spread across the year help avoid surprises and allow adjustments as circumstances change. They also create space for broader conversations about growth, succession, and personal financial goals, rather than focusing solely on compliance.

In short, tax planning is not about clever tactics at the year end. It is about making informed decisions throughout the year. Clients who move away from reactive behaviour and towards regular planning usually find they pay the right amount of tax, at the right time, with far less stress.

For many people, pensions are seen as something to think about later in life rather than as part of annual tax planning. In reality, reviewing pension contributions before the end of the tax year on 5 April can be one of the most effective ways to reduce a current tax bill while also strengthening long-term financial security.

The key reason pensions are so powerful is the tax relief available on contributions. Money paid into a registered pension scheme benefits from income tax relief, which effectively boosts the value of the contribution. Basic rate taxpayers receive relief at 20 per cent, while higher and additional rate taxpayers can receive relief at 40 per cent or 45 per cent, subject to the rules.

Where pension planning becomes particularly valuable is for individuals whose income falls within certain bands. Those with income over £100,000 begin to lose their personal allowance, creating an effective marginal tax rate of up to 60 per cent. Similarly, families affected by the High Income Child Benefit Charge can face unexpectedly high marginal rates once income exceeds £60,000. In these situations, a pension contribution can reduce adjusted net income and restore allowances or reduce charges, often producing a much larger tax saving than expected.

For the 2025-26 tax year, the standard annual allowance is £60,000, covering all personal and employer contributions. Contributions are usually capped at 100 per cent of relevant UK earnings, although individuals with low or no earnings can still contribute up to £3,600 gross. Higher earners should be aware of the tapered annual allowance, which can significantly reduce the amount that qualifies for relief.

It is also important not to overlook the carry forward rules. Unused allowances from the previous three tax years may be available, allowing much larger contributions in a single year, provided the conditions are met.

A pension review before 5 April is not just about retirement planning. It is about understanding how pensions fit into wider tax planning and using the rules as they stand to make informed decisions. Taking advice before the year end ensures opportunities are not missed.

1 February 2026 – Due date for Corporation Tax payable for the year ended 30 April 2025.

19 February 2026 – PAYE and NIC deductions due for month ended 5 February 2026. (If you pay your tax electronically the due date is 22 February 2026)

19 February 2026 – Filing deadline for the CIS300 monthly return for the month ended 5 February 2026.

19 February 2026 – CIS tax deducted for the month ended 5 February 2026 is payable by today.

1 March 2026 – Due date for Corporation Tax due for the year ended 31 May 2025.

2 March 2026 – Self-Assessment tax for 2024-25 paid after this date will incur a 5% surcharge unless liabilities are cleared by 1 April 2026, or an agreement has been reached with HMRC under their time to pay facility by the same date.

19 March 2026 – PAYE and NIC deductions due for month ended 5 March 2026 (If you pay your tax electronically the due date is 22 March 2026).

19 March 2026 – Filing deadline for the CIS300 monthly return for the month ended 5 March 2026.

19 March 2026 – CIS tax deducted for the month ended 5 March 2026 is payable by today.

The government recently announced significant changes to the planned reforms to Agricultural Property Relief (APR) and Business Property Relief (BPR). The threshold for 100% relief will be increased from £1 million to £2.5 million when the changes take effect from 6 April 2026. The change will be introduced via an amendment to the Finance Bill 2025 with relief reduced to 50% on qualifying assets above the new level.

Spouses or civil partners will be able to pass on up to £5 million of qualifying agricultural and business assets between them free of inheritance tax, in addition to the existing nil rate bands. The transferable allowance will also apply to surviving spouses or civil partners who were widowed before the new policy was announced.

These changes adjust the reforms first announced at Autumn Budget 2024, which had attracted strong criticism from the farming community and rural businesses over the potential impact on small farms and family-owned enterprises. By raising the threshold, the government aims to significantly reduce the number of estates affected by higher inheritance tax charges, ensuring that the reforms are focused primarily on the largest estates.

The government estimates that around 85% of estates claiming APR in 2026-27, including those also claiming BPR, will pay no additional inheritance tax as a result of these changes.

Shares designated as “not listed”, such as those traded on AIM, will attract BPR at a flat rate of 50% (reduced from 100%) from April 2026. This measure was unaffected by the latest announcement.

CGT on certain UK residential property sales often has a strict 60-day reporting and payment deadline, so early planning can avoid penalties.

If you are selling a second property, such as a buy-to-let or a former home that is no longer your main residence, CGT will usually apply. This is different from selling your main home, which is often covered by Principal Private Residence (PPR) relief and therefore exempt from CGT.

The annual exempt amount applicable to Capital Gains Tax (CGT) is currently £3,000. CGT is normally charged at a simple flat rate of 24% and this applies to most chargeable gains made by individuals. If taxpayers only pay basic rate tax and make a small capital gain, they may only be subject to a reduced rate of 18%. Once the total of taxable income and gains exceed the higher rate threshold, the excess will be subject to 24% CGT. 

Most homeowners do not pay CGT when selling their main family home, as PPR relief usually applies. However, CGT is commonly payable on gains from:

• Buy-to-let properties
• Second homes or holiday homes
• Business premises
• Land
• Inherited property (based on the increase in value since inheritance, not since original purchase)

Any CGT due on the sale of UK residential property must usually be reported and paid within 60 days of completion. This requires submitting a UK Property CGT return and making a payment on account within that timeframe.

Failing to meet the 60-day deadline can result in penalties and interest, so it is important to plan ahead and obtain advice as early as possible when selling a property that is not fully exempt.

Are you ready for Making Tax Digital for Income Tax (MTD for IT)? This new way of reporting will become mandatory in phases from April 2026. If you are self-employed or a landlord earning over £50,000, now is the time to prepare for digital record keeping, quarterly updates and the new penalty system that will apply under MTD for IT.

The date from which you must start using MTD for IT depends on your level of qualifying income. If your qualifying income exceeded £50,000 in the 2024-25 tax year, you will need to use MTD for IT from 6 April 2026. If your qualifying income exceeded £30,000 in the 2025-26 tax year, you will need to use MTD for IT from 6 April 2027. Where qualifying income exceeds £20,000 in the 2026-27 tax year, the government has confirmed that MTD for IT will apply from April 2028. Qualifying income is defined as the total income you receive in a tax year from self-employment and property before expenses.

You are currently exempt from MTD for IT if you meet specific conditions that automatically exempt you from the service, such as reasons relating to age, disability, or location, if you have applied for and been granted an exemption by HMRC, or if your qualifying income is £20,000 or less in a tax year.

HMRC’s guidance on MTD for IT has been updated and now includes further information on both permanent and temporary exemptions. It explains which exemptions apply automatically and which require an application. Permanent exemptions are generally automatic and continue to apply unless your circumstances change. You will need to apply for an exemption if you believe you are digitally excluded from using MTD for IT. If you are not required to use MTD for IT, you must continue to report your income and gains through the self-assessment tax return where applicable.

Tackling fraud in the Construction Industry Scheme (CIS) was one of the measures addressed in the recent Budget. The changes are intended to allow faster intervention where fraud is suspected, while also simplifying certain administrative aspects of the CIS.

From 6 April 2026, HMRC will be able to act immediately where a business makes or receives a payment that it knew, or ought to have known, was connected to fraud. In these cases, HMRC will have the authority to withdraw Gross Payment Status (GPS) straight away, assess the business for any related tax loss and impose penalties of up to 30%. Penalties may apply to the business itself or, in some circumstances, to its officers. Where GPS status is removed due to fraud or serious non-compliance, the business will also be prevented from reapplying for five years, a significant increase from the current one-year restriction.

The government also announced plans to simplify the operation of the CIS. Planned changes include exempting payments made to local authorities and certain public bodies from the scheme and reinstating the requirement for contractors to submit nil returns. These measures are expected to take effect from 6 April 2026, following a period of technical consultation.

The CIS applies special tax and National Insurance rules to construction businesses, with contractors generally required to deduct tax from payments made to subcontractors. Deduction rates depend on whether the subcontractor is registered and whether they hold GPS, which allows payment without deductions.

The United Kingdom’s competition regulator, the Competition and Markets Authority (CMA), has launched a public consultation on a package of measures aimed at improving how Google’s search services operate in the UK. This follows the CMA’s decision last October to designate Google as having strategic market status in search services, meaning that Google’s dominance in online search has been formally recognised and targeted under the UK’s digital markets competition regime. 

Google Search is used for more than 90 per cent of general search queries in the UK, and thousands of businesses rely on it for visibility and sales. The proposed measures are designed to ensure that competition works better for people, firms and content creators, and that users and businesses have greater choice and control over how they interact with search services.

One key focus is improving rights and transparency for content publishers. Under the proposals, publishers including news and other content producers would be given clearer options over how their material is used in Google’s AI Overviews, the automated summaries that appear at the top of search results and can reduce traffic to original content. The CMA wants publishers to have the ability to opt out of having their content used in AI features or for AI training outside of Google Search, and for Google to take practical steps to ensure proper attribution where content is used

Another proposed change is to introduce fair ranking requirements, with Google required to demonstrate that its approach to ranking search results and integrating AI features is transparent and non-discriminatory for businesses, and that there is an effective process for raising and addressing issues.

The CMA is also consulting on measures to make it easier for users to switch search services and to improve data portability. These include making default choice screens a legal requirement on Android devices and introducing choice screens in the Chrome browser, aimed at helping people to choose alternative search providers. 

The consultation is open until 25 February 2026, after which the CMA will consider responses before deciding on final conduct requirements. 

A recent GOV.UK news release highlights a clear shift in tone from government, with a stronger focus on helping British scaleups stay and grow in the UK, rather than being pushed overseas for funding, talent, or commercial support. The announcement, led by Business Secretary Peter Kyle, brings together a mix of finance, regulatory reform, and sector support aimed at improving the conditions for high-growth firms.

While the headlines focus on “red tape”, the detail is more practical. It is about unlocking growth capital, speeding up decisions, reducing duplicated compliance, and making it easier for innovative companies to invest and scale.

Backing scaleups with bigger and bolder funding

A standout feature of the package is the British Business Bank making its largest ever direct investment into a private company, committing £25 million into Kraken Technologies, an AI-driven platform best known for improving billing and customer service systems in the energy sector.

The press release notes that Kraken is already used internationally at major scale, reportedly serving tens of millions of customer accounts. Importantly, it also indicates the business may list in London following its demerger from Octopus Energy Group, which underlines the wider policy goal of keeping UK champions anchored in Britain.

Alongside this direct investment, the British Business Bank is also investing £50 million each into two funds supporting life sciences and deep tech, Epidarex Capital and IQ Capital.

For growing businesses outside these sectors, this still matters. It signals that government wants the British Business Bank to play a stronger role in backing higher-risk, high-potential companies, rather than leaving them to seek overseas capital by default.

Cutting the right red tape, without cutting protection

The announcement also includes regulatory reviews that aim to simplify health and safety rules and streamline farming and agri-tech regulation. The stated intention is to reduce paperwork and duplication while keeping essential protections in place.

This is a point worth watching. Businesses rarely argue against safety or good governance. What they usually object to is complexity, repeat reporting, and uncertainty. When rules are hard to interpret, firms either over-comply at cost, or under-comply and take risk.

If the promised simplification is delivered well, it could improve productivity and help scaling firms spend more time building products and customers, rather than wrestling with process.

Changes to corporate reporting and competition processes

From a practical business perspective, two other points stand out.

First, the government is scrapping the Audit Reform Bill, with the stated aim of avoiding significant new costs for large firms.

Second, there are plans to allow virtual AGMs, streamline corporate reporting, and consult on speeding up and simplifying competition investigations while preserving the Competition and Marketing Authority’s independence.

Although some of these changes sound aimed at larger organisations, smaller companies often feel the knock-on effects through group reporting requirements, supply chain administration, and the general compliance climate. Any move toward clearer, more modern reporting standards can help reduce friction across the whole business environment.

A major commitment to battery innovation

The release also includes what it describes as the government’s largest single commitment to battery research and development, £180 million via the Battery Innovation Programme, itself part of a wider £452 million programme.

Battery innovation matters well beyond the automotive sector. It links to net zero targets, energy resilience, and the UK’s ability to compete in advanced manufacturing, all of which influence investment decisions and regional job creation.

What business owners should take from this

For business owners and advisers, the message is simple. Growth is being encouraged through a mix of investment funding and targeted simplification. The practical opportunity is to watch for new funding routes, sector initiatives, and regulatory changes that reduce drag on expansion.

For any company aiming to scale in 2026 and beyond, now is a good time to review funding options, compliance bottlenecks, and strategic investment plans, and to make sure growth ambitions are supported by strong financial reporting and cash control.

If you would like help reviewing your growth plans, funding readiness, or operational constraints, speak to your adviser and map out what practical steps you can take next.

Most business owners do not set out to be reactive. It just happens. A customer needs something urgently, a staff member calls in sick, a supplier increases prices, a bank balance looks tighter than expected, and suddenly the day has gone. You have been “busy”, but you have not moved the business forward in any deliberate way.

By contrast, planning business outcomes is about deciding what you want the business to achieve, then aligning decisions, time, money, and behaviour to make that outcome more likely. It is the difference between steering a car and just hoping the road will work out.

Both planning and reacting have their place. The problem comes when reacting becomes the default setting, and planning becomes something you “will do when things calm down”.

What it means to plan business outcomes

Planning outcomes means starting with the end in mind. You decide what success looks like, in practical terms, then you work backwards.

For example, a planned outcome might be:

• Increase monthly profit by £2,000 within six months
• Reduce working hours from 60 per week to 45 per week
• Improve cash reserves to cover three months of costs
• Move from low margin clients to fewer, better fee clients
• Launch a new service line that generates recurring income

Once an outcome is clear, planning becomes an organising tool. It helps you choose priorities. It also helps you say no to distractions that feel urgent but do not contribute to the destination.

Crucially, planning outcomes is not about writing a glossy business plan and putting it in a drawer. It is about forming a simple strategy and reviewing it regularly.

What it means to react to business outcomes

Reacting is what happens when the business is driven mainly by events, not intent.

That can look like:

• Cutting prices because a competitor undercuts you
• Working late because deadlines keep piling up
• Chasing overdue invoices only when the bank balance looks worrying
• Hiring in a rush because workload has become unmanageable
• Taking on “just one more client” even though capacity is already stretched

In a reactive business, management decisions are often short-term fixes. They solve today’s pain, but they rarely improve the underlying structure of the business.

This is why reactive businesses often feel exhausting. The work never ends, and the same problems keep returning in new forms.

The impact on performance, cash, and stress

Planning outcomes tends to improve performance because it creates focus. Resources are limited, so a business needs to be selective about where time and effort goes. Planning also improves consistency because you are not reinventing priorities every week.

Reactive management tends to create volatility. Cash flow swings are more common, workloads become lumpy, and decisions are made under pressure. That pressure often leads to “good enough” choices rather than good choices.

This also affects stress levels. A planned business is not stress free, but it is calmer. There is usually a sense of direction. A reactive business often feels like firefighting, even when sales are strong.

Why reacting becomes a habit

Many owners react because it feels productive. It provides quick wins and instant reassurance, and it is often linked to customer service and professionalism.

The issue is that reacting consumes the best thinking time. If you only ever respond, you never build the systems that reduce problems in the first place.

Another reason is that planning can feel uncomfortable. Planning forces you to choose. It forces you to face what is not working, and to stop pretending that everything can be done at once.

How to move from reactive to planned

A simple way to shift gears is to create a short “outcomes dashboard” and review it weekly. Pick three to five measures that matter, such as revenue, profit, cash in bank, pipeline value, and debtor days.

Then build one small planning habit into the week, such as:

• 30 minutes on Monday to plan the week’s priorities
• A mid-month cash review and invoice chase routine
• A monthly review of which clients are profitable and which are not
• A quarterly decision on what to stop doing

Small routines reduce the need for big rescue missions later.

The best businesses do both

Good planning does not eliminate reaction. It reduces unnecessary reaction.

The strongest businesses plan their outcomes but stay flexible when reality changes. They react to surprises, but they do not let surprises run the business.

If you want a business that grows, supports your lifestyle, and feels sustainable, planning outcomes is not a luxury. It is the work that makes everything else easier.