What planning opportunities should UK taxpayers explore before the end of the 2024/25 tax year for Self Assessment and Corporation Tax?

Why the end of the tax year matters, and what “planning” really means

For UK taxpayers, the period leading up to the end of the tax year can be one of the few predictable windows in which you still have genuine control over the timing of income, reliefs, allowances, and deductions. Once the clock ticks past 5 April, many opportunities disappear or become far harder to access. “Tax planning” in this context does not mean artificial schemes or aggressive structures. It usually means making sure you have used the reliefs Parliament has put in place, aligning cashflow and commercial decisions with tax rules, and ensuring you have the evidence, paperwork, and elections in place to support positions taken on Self Assessment or Corporation Tax returns.

Before diving into specific ideas, it helps to separate three concepts. First are opportunities that must be acted on before 5 April 2025 for individuals (the end of the 2024/25 tax year). Second are opportunities that depend on a company’s accounting period end date, which may not align with 5 April at all, but where decisions made before 5 April can still influence personal tax outcomes (for example, dividend timing). Third are “administrative” opportunities: ensuring records, elections, claims and compliance steps are done in time to avoid penalties and to secure reliefs that might otherwise be lost.

Know your deadlines: Self Assessment versus Corporation Tax

Self Assessment is driven by the tax year (6 April to 5 April). Many planning steps are about optimising the 2024/25 tax year position before 5 April 2025. That includes using annual allowances, timing income and deductions, and considering how marginal rates apply if you are close to thresholds.

Corporation Tax is driven by a company’s accounting period. A company with a 31 March 2025 year end is close to the tax year boundary, whereas a company with a 31 December 2024 year end is not. However, owner-managed businesses often have planning choices that affect both: directors’ remuneration packages, pension contributions, dividend timing, benefits, and the capture of business expenses. While a company’s Corporation Tax computation won’t be “locked” at 5 April, an owner’s personal tax position often is.

Start with a threshold review: where do marginal rates bite?

A practical first step is to map your expected taxable income for 2024/25. This is not just salary or dividends. It includes rental profits, self-employment profits, interest, foreign income, and chargeable event gains, as well as taxable benefits and any employment bonuses. Once you have a reasonable forecast, you can identify which thresholds matter for you.

Key “pressure points” are where small changes in income can have outsized tax effects. Examples include: entering a higher tax band; the reduction of the personal allowance once income exceeds a certain level; the interaction of income with child-related charges; and the rate at which dividend income is taxed once allowances are used. You do not need perfect figures to plan; you need a credible estimate that highlights whether you are close to a cliff edge or in a range where an extra pound of income is disproportionately expensive.

Maximise pension contributions in a way that fits your circumstances

Pension contributions are a classic end-of-year planning tool because they can provide income tax relief, and in certain cases can help reduce “adjusted net income” for threshold purposes. For many individuals, personal contributions made before 5 April 2025 can be used to claim relief in 2024/25. Relief is generally given at source for many personal pensions, with additional relief claimed via Self Assessment for higher and additional rate taxpayers where applicable.

Business owners should also consider employer contributions. For a company, employer pension contributions can be an allowable expense for Corporation Tax purposes if they are made wholly and exclusively for the purposes of the trade and are not excessive for the work performed. Employer contributions can be particularly efficient because they can reduce the company’s taxable profits and, depending on structure, can be more flexible than salary increases. However, there are annual allowance rules, and for higher earners, tapered annual allowance restrictions may apply. It is also important to consider cashflow and the commercial rationale, as well as ensuring contributions are paid by the relevant cut-off to count for the intended period.

A frequent mistake is to assume the intention to contribute is enough. Timing matters: for many arrangements, the date funds are received by the pension provider determines the tax year. If you are aiming to use 2024/25 relief, build in time for bank transfers, provider processing, and any identity or anti-fraud checks that might delay receipt.

Gift Aid and charitable giving: small action, useful impact

Charitable donations under Gift Aid can be valuable for tax planning. Donations made by individuals can extend the basic rate band and can reduce adjusted net income for certain threshold tests. For those paying higher rates, this can translate into additional relief claimed through Self Assessment. The administrative side matters: keep records of donations and ensure the charity has your Gift Aid declaration where needed.

For company owners, consider whether donations should be made personally or by the company. Corporate charitable donations can be deductible for Corporation Tax, but the facts matter. The best route can depend on profit levels, personal income position, and the nature of the charity relationship. Avoid confusing sponsorship or marketing arrangements with pure donations; each has different tax treatment and evidence requirements.

ISA subscriptions: not a tax deduction, but still powerful planning

ISAs do not create an income tax deduction, but they do shelter interest, dividends, and capital gains from tax. End-of-year ISA planning is about using the annual subscription limit before it resets. For taxpayers who are building investment portfolios, this can be a long-term strategy that reduces future Self Assessment complexity and future tax liabilities.

If you are investing through a limited company, note that companies cannot hold ISAs. The decision then becomes one of extracting funds to invest personally or investing via company structures, each with trade-offs. Personal ISA planning is often most relevant for owner-managers deciding whether to take additional dividends to fund personal savings and investments.

Capital gains: use annual allowances and consider timing of disposals

If you are planning to sell investments or assets, timing can be crucial. The tax year boundary affects which year gains fall into, and it can change the rate at which those gains are taxed depending on your income level and the availability of allowances. Some individuals use end-of-year planning to realise gains up to the annual exempt amount, to rebalance portfolios, or to crystallise losses to offset gains.

Loss planning can be as important as gain planning. If you have assets standing at a loss, and you were going to dispose of them anyway, crystallising the loss in the right tax year can help reduce taxable gains. Always consider anti-avoidance rules relating to reacquiring identical assets, and ensure transactions have commercial substance and are properly evidenced. If you are disposing of business assets, the availability of business-related reliefs can be relevant, and documentation around ownership, use, and trading status can matter significantly.

Marriage Allowance and transferable allowances: simple checks that get missed

For some couples, ensuring that available transferable allowances have been used can be an easy win. Where one spouse or civil partner has income below the personal allowance, transferring a portion of their allowance can reduce the other partner’s tax liability if the recipient is within the relevant tax band. The conditions are specific, and the decision should be made with a clear view of each partner’s income for the year.

Even where Marriage Allowance is not appropriate, end-of-year planning might include reviewing ownership of income-producing assets between spouses or civil partners, especially where there is flexibility to hold assets jointly or in different proportions. Any changes must be genuine, properly documented, and consistent with legal ownership and beneficial entitlement. It is not a last-minute paperwork exercise; it can have legal, financial and practical implications.

High Income Child Benefit Charge: reduce adjusted net income if relevant

If Child Benefit is in play and you or your partner has income in a range where the charge applies, the effective marginal rate on additional income can be very high. Planning typically focuses on managing adjusted net income. The most common legitimate levers include pension contributions and Gift Aid donations. The key is to measure the net cost: sometimes contributing to a pension or making a charitable donation produces a better overall outcome than paying the charge, especially when you value the underlying pension savings or charitable impact.

Administrative considerations matter here as well. If you have not been filing Self Assessment because you assumed you did not need to, this charge can trigger a filing requirement. End-of-year is a good moment to ensure you are registered if needed and that you understand what income counts. Getting ahead of it reduces the risk of backdated issues and penalties.

Self-employment and partnership planning: expenses, capital allowances, and record hygiene

For sole traders and partners, end-of-year planning is partly about making sure you have captured allowable expenses and have good records. This is not about inflating costs; it is about ensuring you have properly identified business expenditure that has been incurred wholly and exclusively for the trade. Typical areas include software subscriptions, professional fees, travel expenses that are genuinely business-related, and use of home considerations where applicable.

Capital expenditure planning can also matter. If you anticipate buying equipment, vehicles used in the business, or other qualifying assets, the timing of the purchase can affect when allowances are available. The specific relief depends on the nature of the asset, how it is used, and the relevant rules for your business structure. The end of the tax year is a natural checkpoint to decide whether planned purchases should be brought forward or delayed, based on both commercial need and tax outcomes.

Also review whether you have any bad debts or doubtful debts (where relevant), and ensure your accounting treatment aligns with tax rules. Where you use simplified expenses or cash basis rules, ensure you are applying the correct method consistently. Good record hygiene is a form of planning because it supports claims and reduces professional costs later.

Property income: review allowable costs, finance rules, and timing of repairs

Landlords should use the end-of-year window to review property income records carefully. Allowable costs typically include repairs and maintenance (not improvements), agents’ fees, insurance, and certain other running costs. The distinction between a repair and an improvement is often the most contentious point. In practice, keeping invoices, descriptions, and evidence of the condition and nature of work can be decisive if questions arise.

If you have multiple properties, consider whether the timing of significant repairs could sensibly be brought forward or delayed. That is not a reason to do unnecessary work, but if a repair is needed and you are near a threshold, the timing can affect the tax year in which the deduction arises. Also consider whether there are any reliefs or restrictions relevant to finance costs and how your cashflow is structured. Because property income can interact with overall income thresholds, it should not be planned in isolation.

Dividend planning for owner-managed companies: timing and band management

For directors and shareholders of private limited companies, dividend planning is often one of the most practical levers before 5 April. Dividends are taxed on the individual shareholder, and the date of payment or entitlement can determine the tax year. Planning here typically involves forecasting how much dividend income you need for living costs, the tax position of each shareholder, and whether paying dividends before or after the tax year end is beneficial.

It can be efficient to spread dividends between family shareholders if share ownership and dividend rights are properly established and commercially sensible. However, any arrangements must be legally robust: share classes, dividend waivers, and minutes must be properly drafted, and the company must have sufficient distributable reserves. Dividends paid without reserves can create legal and tax issues.

Also consider the interplay with salary. Some directors favour a mix of salary and dividends to manage National Insurance and income tax. The right balance depends on your circumstances, including other income sources and the company’s profits. End-of-year is a good time to check whether the remuneration strategy still fits the company’s performance and your personal position.

Director salary and bonuses: consider both tax and accounting periods

Salary and bonuses can be deductible for Corporation Tax if they are incurred wholly and exclusively and are properly accounted for. Timing matters: to be deductible in a particular accounting period, the company generally needs to have properly accrued the expense and, for certain items like bonuses, may need to meet specific conditions. On the personal side, salary is taxable when paid, and it can affect thresholds and marginal rates in the tax year.

Bonuses can be tempting at year end, but the “right” answer is not always to pay more. Consider cashflow, the company’s profit position, and how much additional personal tax will be triggered. A bonus might also affect entitlement to certain benefits or trigger charges. For some owner-managers, pension contributions can achieve similar objectives with a different tax and cashflow profile.

Benefits in kind and trivial benefits: tidy up and document properly

Benefits in kind create tax charges for employees and employers and can trigger reporting and National Insurance obligations. End-of-year is a good time to review what benefits have been provided: company cars, private medical insurance, loans to directors, reimbursements of personal expenditure, and home-working arrangements. Making sure benefits are correctly classified and recorded reduces the risk of unpleasant surprises later.

Some benefits can be provided in a tax-efficient way if they fall within specific exemptions, such as certain “trivial benefits” rules. But the exemption conditions are strict, particularly for directors of close companies. Good documentation is key: what was provided, to whom, why, and how often. Avoid patterns that look like disguised remuneration, and be wary of rolling “allowances” labelled as benefits if they are effectively extra salary.

Director’s loan accounts: avoid accidental tax charges

Director’s loan accounts can create significant tax consequences if a director owes money to the company. If loans are not repaid within required timescales, the company may face a tax charge, and the director may face benefit-in-kind implications if the loan is interest-free or low interest above certain thresholds. End-of-year is an ideal time to review the director’s loan position and plan repayments or alternative strategies.

Be cautious about “bed and breakfast” style repayments funded by short-term arrangements that effectively re-create the loan shortly after repayment. Rules and anti-avoidance provisions can deny the intended benefit. A clean plan focuses on genuine repayment, dividend declarations (where reserves allow and legal formalities are met), or salary/bonus payments, with the tax consequences modelled in advance.

Corporation Tax planning: focus on profits, reliefs, and evidence

Corporation Tax planning often starts with understanding the company’s forecast profits for its accounting period, not the personal tax year. If profits are higher than expected, consider whether planned expenditure should be accelerated where commercially sensible. This might include training, essential equipment purchases, software, professional advice, or marketing initiatives that the business was going to undertake anyway.

Capital allowances planning can be particularly impactful. The tax relief available depends on the type of asset and the company’s circumstances. Ensure that invoices clearly describe the asset, that it is owned by the company, and that it is used for business purposes. If assets are partly private use, that can affect the relief available.

For companies engaged in innovation, product development, or technical work, it is worth reviewing whether R&D-related reliefs or credits might apply. Even where eligibility exists, the quality of documentation is critical. Keeping contemporaneous project records, staff time allocations, and technical narratives can make the difference between a successful claim and a costly enquiry.

Group and connected party transactions: keep them commercial and properly priced

Many small companies transact with connected parties: director-owned landlords charging rent, family members providing services, or intercompany loans. Planning here is less about “end-of-year tricks” and more about ensuring the company’s accounts and tax computation reflect commercial reality. Payments should be at a reasonable level for the service or asset provided, supported by contracts or agreements where appropriate, and paid in a way that matches the documentation.

Rent paid to a director for use of property can have personal tax consequences and should be backed by a lease or licence and evidence of market rate where relevant. Payments to family members should be justifiable by actual work performed and appropriate remuneration levels. These areas are common enquiry topics because they can be used to shift profit out of a company without proper substance. The best planning is a clean, defensible position.

Loss relief and relief optimisation: don’t leave value on the table

If your business has made losses, there may be options to carry them forward, carry them back, or use them in different ways depending on the type of loss and the structure of the business. For companies, losses can sometimes be offset against other profits in the group if conditions are met. For unincorporated businesses, there can be options to relieve certain losses against other income, subject to rules and restrictions.

End-of-year is a good time to identify whether you are sitting on unused reliefs, such as prior-year losses, capital losses, or relief that requires a claim within a set period. The planning opportunity is often about making sure the claim is made and that it is used in the most beneficial order. Relief can be wasted if it is applied against income taxed at lower rates when it could have sheltered income taxed at higher rates, or if it is not claimed within a deadline.

Making Tax Digital and digital record readiness: a planning opportunity in disguise

Even if the primary aim is to reduce tax, modern compliance is increasingly about systems and data quality. Digital record keeping and reporting obligations can increase the cost of compliance if your records are incomplete or disorganised. Treating end-of-year as a “data close” period can reduce the time and professional fees required to finalise returns and accounts.

For individuals and businesses, consider whether your bookkeeping method captures all income streams, whether bank feeds or reconciliation processes are reliable, and whether you can separate personal and business expenditure cleanly. For companies, ensure expense claims policies are clear and receipts are retained. If you use accounting software, ensure nominal coding and VAT treatment (where relevant) is consistent. This is not glamorous planning, but it is often the highest return on effort because it reduces errors and improves decision-making.

Self Assessment housekeeping: avoid late filing surprises and protect reliefs

Planning is not only about the tax bill; it is also about avoiding penalties and stress. If you are not yet registered for Self Assessment but should be, make sure you do so in good time. If you have multiple income sources, create a checklist: employment income and benefits, dividends, interest, property income, self-employment, foreign income, and capital gains. Ensure you have the supporting documents available, such as P60s, P11D details (if relevant), dividend vouchers, interest statements, and letting agent summaries.

Also consider payments on account if they apply to you. If your income is falling, you may be able to reduce payments on account, but you should do so carefully; reducing too far can lead to interest charges. Conversely, if your income is rising, plan for cashflow: many taxpayers are caught off guard by the combined effect of balancing payments and payments on account.

Corporation Tax compliance planning: deadlines, instalments, and cashflow

Corporation Tax payment deadlines depend on the company’s accounting period and size. Even where planning opportunities exist, the company must be able to pay what it owes on time. Use end-of-year as a prompt to forecast Corporation Tax liabilities, review whether instalment payments might apply, and ensure reserves are set aside.

Also review whether your company’s accounting records are ready for year-end close. Late accounts can cascade into late returns and penalties. If you anticipate complexity—such as share issues, changes in ownership, property transactions, or significant one-off events—plan the timetable for finalising accounts and Corporation Tax computations. The cost of last-minute professional work is often higher, and the risk of errors increases.

Specific planning ideas for freelancers and contractors operating through limited companies

Contractors often face a blend of personal tax planning and company planning. Before 5 April, review your expected personal income from salary and dividends and decide whether any dividends should be declared before the tax year end. Also review reimbursed expenses and ensure they are supported by receipts and are genuinely business-related.

Consider pension contributions either personally or via the company. For many contractors, company contributions can be a straightforward way to extract value while reducing Corporation Tax, provided contributions are appropriate. Also check any potential IR35 or off-payroll working exposure, as that can change how income should be treated. While IR35 is not an “end-of-year election,” end-of-year is a good moment to ensure the company’s records and contracts align with the actual working practices.

Planning for companies with property, investments, or non-trading income

Some companies hold investments or property alongside trading activity. The tax treatment of such income can differ, and the presence of investment activity can affect access to certain reliefs. If your company has significant non-trading income, consider whether it changes the company’s broader tax profile and whether you need to separate activities for clarity. This is not necessarily about restructuring; often it is about clearer bookkeeping, documenting the purpose of holdings, and ensuring that transactions are correctly classified.

If you are extracting funds from an investment-holding company, dividend planning still matters, but you should also consider the company’s future plans. A company intending to reinvest profits may favour different strategies compared with a company that is a vehicle for personal investment returns. The right approach depends on long-term goals, risk tolerance, and the need for liquidity.

What to do if you are late to the process: a practical end-of-year checklist

If 5 April feels uncomfortably close, focus on high-impact, controllable actions. First, estimate your taxable income and identify whether you are near important thresholds. Second, check whether pension contributions or Gift Aid donations could deliver relief and improve your threshold position. Third, if you are a company owner, decide whether dividend timing should be adjusted and whether any director’s loan issues need addressing. Fourth, ensure your records are in order and that you can evidence any claims. Finally, build a cashflow plan for upcoming payments due under Self Assessment and Corporation Tax so you are not forced into poor decisions later.

Keep the mindset that planning is not a single action; it is a set of coordinated steps that should make commercial sense. If a transaction or expense would look odd without the tax benefit, it probably needs more careful thought. Where decisions involve legal changes—share rights, ownership of assets, or formal agreements—do them properly and allow time for documentation.

Common pitfalls that undermine otherwise good planning

One of the most common pitfalls is acting on assumptions rather than numbers. For example, paying a large dividend “because it seems tax efficient” without checking how it pushes you into higher rates, triggers threshold charges, or creates unexpected payments on account. Another pitfall is poor timing: making a pension contribution too late, declaring a dividend without proper reserves, or accruing a bonus incorrectly for accounting purposes.

Documentation is another weak point. Reliefs and deductions often stand or fall on evidence: invoices, contracts, board minutes, dividend vouchers, pension contribution confirmations, mileage logs, and contemporaneous notes about the business purpose of expenditure. Even where the tax position is technically correct, missing paperwork can cause delays, enquiries, and professional costs.

Finally, beware of trying to fix long-term structural issues at the last minute. If you need to change share ownership, restructure a business, or transfer assets, those steps can have legal and tax consequences that are not suited to hurried execution. End-of-year is often better used to plan the next steps and to implement quick, clean actions that are clearly within the rules.

Bringing it together: align personal and corporate decisions

The most valuable planning before the end of the 2024/25 tax year often comes from aligning personal and corporate decisions. An owner-manager who looks only at Corporation Tax might miss the personal tax cost of extracting profits, and an individual who looks only at Self Assessment might miss company-level opportunities to fund pensions, invest in the business, or tidy up director loan exposure.

A coherent approach starts with a forecast: personal income by source, and company profit and reserves. From there, you can decide how much to extract, in what form, and when. You can ensure reliefs like pension contributions and charitable giving are used effectively. You can confirm that expenses and allowances are correctly captured. And you can prepare the records that support your return positions, reducing compliance risk and stress.

End-of-year planning is not about chasing novelty. It is about doing the fundamentals well, using available allowances, managing thresholds, and ensuring the legal and accounting foundations are sound. For many taxpayers, that combination can make a meaningful difference to both the tax bill and the quality of the financial year-end process.