Company Year-End Checklist: 20 Things to Do Before Your Accounts Close

Your company year-end is the most important date in your financial calendar. The actions you take (or fail to take) in the weeks before your accounting period closes can mean thousands of pounds saved or lost, penalties avoided or incurred, and the difference between a smooth filing process and a stressful scramble.

This comprehensive checklist covers 20 essential tasks every UK limited company director should complete before their year-end. Use it as your guide to maximise tax efficiency, ensure compliance, and start your new financial year with clean, accurate books.

Why Year-End Planning Matters

Year-end isn't just an arbitrary date on the calendar. It's the moment when your company's financial position crystallises for tax and reporting purposes.

Tax savings opportunity: Many tax planning strategies must be implemented before year-end to count. A pension contribution made one day late goes into next year's accounts instead. Equipment purchased after year-end delays your tax relief by 12 months. Missing these windows costs real money.

Compliance risk: Your annual accounts deadline starts ticking from your year-end. If your records aren't in order, you'll face a rushed preparation process that increases the risk of errors, omissions, and potentially late filing penalties.

Cash flow clarity: Understanding your true financial position at year-end helps you plan for the Corporation Tax payment due 9 months later. Surprises are never welcome when it comes to tax bills.

Clean slate: Addressing issues before year-end means starting your new financial year with accurate, reconciled books rather than carrying forward problems that compound over time.

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Timeline: When to Do What

Effective year-end planning isn't a last-minute activity. Here's when to tackle each phase:

3 Months Before Year-End

Strategic review phase. This is when you should:

• Review your projected profit and tax position
• Identify major tax planning opportunities (pension contributions, equipment purchases)
• Assess your salary vs dividend strategy for the remainder of the year
• Check your director's loan account position
• Review outstanding invoices and consider bad debt write-offs
• Plan any major purchases or investments

Why this timing matters: Large financial decisions need time. Pension contributions take days to process. Equipment must be delivered and available for use. Waiting until the final weeks limits your options.

1 Month Before Year-End

Reconciliation and cleanup phase. Focus on:

• Reconciling all bank accounts
• Matching receipts to transactions
• Chasing any outstanding invoices
• Processing all expense claims
• Reviewing and categorising unmatched transactions
• Confirming VAT position and submissions

Why this timing matters: One month gives you buffer time to chase missing documentation, query discrepancies with suppliers, and address any issues that reconciliation reveals.

At Year-End

Final actions phase. Complete:

• Make any last pension contributions
• Process final purchases and invoices
• Confirm director's loan account is clear or documented
• Verify all dividend paperwork is complete
• Take stock inventory (if applicable)
• Final bank reconciliation

Why this timing matters: These are the actions that must be completed by the exact year-end date. Even one day late means they fall into the next accounting period.

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The Complete Year-End Checklist: 20 Essential Tasks

Tax Planning Actions

1. Review Salary vs Dividend Mix

Before your year-end, assess whether your current salary and dividend structure remains optimal.

What to check:

• Has your profit level changed significantly since you set your salary?
• Have tax rates or thresholds changed?
• Do you have unused Personal Allowance that could be utilised through salary?

Why it matters: The optimal mix changes with profit levels and tax legislation. For 2025/26, the most tax-efficient salary for most directors is £12,570 (the Personal Allowance), with remaining extraction via dividends. But if your company profits are modest, you might benefit from a different approach.

Action: Calculate whether adjusting your salary for the final months makes sense. Remember that salary must be voted on and paid by year-end to count.

For detailed calculations, see our salary vs dividends guide.

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2. Make Pension Contributions

Pension contributions represent the most powerful year-end tax planning tool available to limited company directors.

What to check:

• How much of your £60,000 annual allowance have you used?
• Do you have carry-forward allowance from the previous 3 years?
• Has the contribution hit your pension fund before year-end?

Why it matters: Employer pension contributions are fully deductible for Corporation Tax, free from Income Tax, and exempt from National Insurance. A £30,000 pension contribution could save your company £7,500 or more in tax.

Action: Calculate your available allowance and make contributions at least 10 working days before year-end to ensure they're processed in time.

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3. Purchase Necessary Equipment (Capital Allowances)

The Annual Investment Allowance lets you deduct 100% of qualifying equipment costs in the year of purchase.

What to check:

• What equipment have you been planning to buy?
• Can it be ordered, delivered, and available for use before year-end?
• Does it qualify for AIA (plant, machinery, computers, furniture)?

Why it matters: A £10,000 laptop purchase made before year-end saves £2,500 in Corporation Tax immediately. The same purchase one day later delays that relief by 12 months.

Action: Order equipment with enough lead time for delivery before year-end. Keep delivery notes and invoices as proof of timing.

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4. Submit Any Outstanding Expense Claims

Expenses must be properly documented and claimed within the accounting period they relate to.

What to check:

• Have all directors and employees submitted expense claims?
• Are there any personal costs that were actually business expenses (home office, mobile phone)?
• Have all mileage logs been submitted?

Why it matters: Unclaimed expenses mean paying more Corporation Tax than necessary. Once the year closes, those expenses belong to the next period.

Action: Send a reminder to all directors and employees to submit outstanding claims. Review personal bank statements for any business expenses paid personally.

For guidance on what you can claim, see our allowable business expenses guide.

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5. Consider Timing of Major Purchases

Sometimes delaying a purchase makes more sense than accelerating it.

What to check:

• Are profits higher this year than expected next year?
• Would bringing forward a purchase accelerate relief at a higher tax rate?
• Are there any purchases planned for next month that could be brought forward?

Why it matters: If this year's profits are at the 25% rate but next year's will be at 19%, accelerating purchases gives relief at the higher rate. Conversely, if profits are lower this year, deferring might make sense.

Action: Review projected profits for both years and time major purchases accordingly.

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Reconciliation Tasks

6. Reconcile All Bank Accounts

Bank reconciliation confirms your accounting records match actual bank transactions.

What to check:

• Does your accounting system balance match every bank statement?
• Are there unexplained differences or unmatched transactions?
• Have all bank accounts been included (including savings and credit accounts)?

Why it matters: Unreconciled accounts often hide errors, duplicate entries, or missing transactions. These will surface during accounts preparation and cause delays.

Action: Complete reconciliation for all accounts up to a recent date. Investigate and resolve any differences before year-end.

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7. Match Receipts to Transactions

Every business expense should have supporting documentation.

What to check:

• Which transactions are missing receipts?
• Can missing receipts be obtained (contact suppliers, check emails)?
• Are there receipts that haven't been matched to transactions?

Why it matters: HMRC can disallow expenses without proper documentation during an enquiry. Good documentation also speeds up accounts preparation.

Action: Review unmatched transactions and either obtain missing receipts or document why they're unavailable.

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8. Review Unmatched Transactions

Transactions that don't match any invoice or receipt need investigation.

What to check:

• What do the unmatched transactions relate to?
• Are they legitimate business expenses that simply lack documentation?
• Are any personal transactions incorrectly recorded in business accounts?

Why it matters: Unmatched transactions create uncertainty in your accounts. They could be missed expenses (reducing your profit incorrectly) or personal items (inflating business expenses incorrectly).

Action: Investigate each unmatched transaction and either properly categorise it or reclassify as director's loan if personal.

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9. Confirm All Invoices Issued and Received

Sales and purchase invoices determine your reported income and expenses.

What to check:

• Have invoices been issued for all completed work?
• Have all supplier invoices been received and recorded?
• Are there any invoices that should be accrued (work done, invoice not yet received)?

Why it matters: Under-invoicing delays income recognition (potentially good for tax) but creates cash flow issues. Missing purchase invoices means missing deductions.

Action: Review work completed near year-end and ensure appropriate invoicing. Contact suppliers for any expected invoices not yet received.

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10. Review Aged Debtors and Creditors

Your aged debtor and creditor reports reveal potential issues and opportunities.

What to check:

• Which customers haven't paid and how long has it been?
• Are any debts realistically uncollectable (bad debt candidates)?
• Are there disputed amounts that need resolution?
• Do you owe suppliers amounts that should be paid or queried?

Why it matters: Debts over 6 months old may qualify for bad debt relief, reducing your taxable profit. Aged creditors might indicate forgotten liabilities or opportunities to query incorrect charges.

Action: Contact overdue debtors and consider writing off genuinely uncollectable amounts. Review aged creditors for any items that should be queried or paid.

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Record Keeping

11. Ensure All Mileage Logged

Business mileage is a valuable tax deduction that's easy to forget.

What to check:

• Have all business journeys been recorded with dates, destinations, and purposes?
• Are records complete for all vehicles used for business?
• Has the correct mileage rate been applied (currently 45p per mile for first 10,000, then 25p)?

Why it matters: 10,000 business miles at 45p per mile equals £4,500 in deductions, saving over £1,000 in Corporation Tax. Without records, HMRC can disallow the claim.

Action: Review calendars and diaries to identify business trips. Create mileage logs for any undocumented journeys while memory is fresh.

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12. Confirm Director's Loan Account Position

The director's loan account (DLA) tracks money flowing between you and your company.

What to check:

• Is the DLA in credit (company owes you) or debit (you owe company)?
• If overdrawn, what's the balance at year-end?
• Have all transactions been correctly recorded?

Why it matters: An overdrawn DLA at year-end triggers Section 455 tax of 33.75% on the outstanding balance. This is refundable when repaid, but creates a cash flow cost.

Action: If overdrawn, consider declaring dividends to clear it (if profits permit) or repaying before year-end. Review all DLA entries for accuracy.

See our director's loan account guide for detailed guidance.

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13. Review Intercompany Transactions (If Applicable)

If you have multiple companies, transactions between them need careful documentation.

What to check:

• Have all intercompany charges been properly invoiced?
• Are management fees reasonable and documented?
• Do intercompany balances reconcile between entities?

Why it matters: HMRC scrutinises intercompany transactions for potential profit shifting. Pricing must be at arm's length (market rate), and all charges must be properly documented.

Action: Ensure intercompany invoices exist for all charges. Verify balances match between entities and document the basis for any management charges.

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14. Check Dividend Paperwork Complete

Dividends require proper documentation to be valid.

What to check:

• Have board minutes been prepared for each dividend declaration?
• Have dividend vouchers been issued to all shareholders?
• Do dividends match what's actually been paid?

Why it matters: Without proper paperwork, HMRC could reclassify dividends as salary (triggering NI) or as director's loans (triggering Section 455 tax).

Action: Prepare any missing board minutes and dividend vouchers. Ensure amounts match actual payments made.

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15. Verify PAYE Filings Up to Date

If you run payroll, all submissions must be current.

What to check:

• Have all Full Payment Submissions (FPS) been filed on time?
• Are there any outstanding Employer Payment Summary (EPS) requirements?
• Have all PAYE and NI payments been made?

Why it matters: Late or missing PAYE filings attract penalties and interest. Errors discovered during year-end preparation are harder to correct.

Action: Review RTI submission records and correct any errors. Ensure all payments to HMRC are up to date.

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Compliance Checks

16. Confirm VAT Returns Submitted

VAT compliance is separate from annual accounts but equally important.

What to check:

• Have all VAT returns been submitted on time?
• Is your VAT registration status correct for your current turnover?
• Are there any errors in previous returns that need correcting?

Why it matters: Late VAT submissions accumulate penalty points. Errors not corrected become harder to address over time.

Action: Review VAT submission history and address any outstanding returns. Check whether current turnover requires VAT registration if not already registered.

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17. Review Confirmation Statement Status

Your Confirmation Statement confirms Companies House records are accurate.

What to check:

• When is your next Confirmation Statement due?
• Is all company information at Companies House accurate?
• Have any changes occurred that need reporting?

Why it matters: The Confirmation Statement must be filed within 14 days of your confirmation date. Late filing attracts penalties and risks company strike-off.

Action: Check your Companies House record for accuracy. File your Confirmation Statement if due.

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18. Check Companies House Filings

Beyond the Confirmation Statement, ensure all required filings are current.

What to check:

• Are previous year's accounts filed?
• Have all director appointments/resignations been notified?
• Are any filings outstanding or overdue?

Why it matters: Outstanding Companies House filings affect your credit rating, can block banking applications, and may result in penalties or strike-off.

Action: Log into Companies House and verify your filing history is complete. Address any outstanding requirements.

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19. Verify Registered Address Correct

Your registered office address must be genuine and accessible.

What to check:

• Is your registered address current and correct?
• Does official mail reach you reliably?
• Has your address changed during the year?

Why it matters: Legal documents and HMRC correspondence go to your registered address. Missing important notices can have serious consequences.

Action: Verify your registered address on Companies House. Update if necessary using form AD01.

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20. Review Shareholdings and PSC Register

Your shareholding structure and People with Significant Control register must be accurate.

What to check:

• Have any shares been issued, transferred, or cancelled?
• Is your PSC register up to date?
• Have there been any changes to beneficial ownership?

Why it matters: Inaccurate shareholding records affect dividend entitlements and can create problems during company sales or funding rounds.

Action: Review share register against your records. Update PSC register for any changes in beneficial ownership.

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Common Year-End Mistakes to Avoid

Even experienced directors make these errors. Be aware of these pitfalls:

Leaving it too late. Many tax planning opportunities require time to implement. Pension contributions need processing time. Equipment must be delivered. Starting year-end preparation in the final week leaves no room for delays or issues.

Forgetting timing rules. Expenses must be incurred before year-end, but dividends must be declared (and ideally paid) before year-end. Understanding these timing requirements prevents costly mistakes.

Relying on memory for mileage. Reconstructing mileage records months after journeys were made is unreliable and may not satisfy HMRC in an enquiry. Record journeys as they happen.

Ignoring the director's loan account. An overdrawn DLA seems harmless until you face the 33.75% Section 455 tax bill. Check your DLA position regularly, not just at year-end.

Not checking Companies House. Your Companies House record is public. Errors or outdated information affect how customers, suppliers, and banks view your company. Review it annually.

Assuming the accountant will sort it. Even with an accountant, you need to provide complete, accurate records. Gaps in documentation create delays and potentially missed deductions.

Missing VAT deadlines. VAT penalties operate on a points system. Each late submission brings you closer to financial penalties. Year-end focus on Corporation Tax can cause VAT to slip through the cracks.

Failing to document dividends. Dividend payments without proper board minutes and vouchers can be reclassified by HMRC, resulting in unexpected tax bills.

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What to Prepare for Your Accountant

If you use an accountant for accounts preparation and filing, having these items ready speeds up the process and potentially reduces fees:

Bank reconciliation. A reconciled bank account with all transactions categorised saves hours of accountant time.

Receipt documentation. Either digital copies organised by month or physical receipts in date order. The easier they are to match to transactions, the faster accounts preparation goes.

Year-end bank statements. Statements showing balances at the exact year-end date, not just the last statement you received.

Asset register. A list of all equipment, vehicles, and other assets with purchase dates and costs. Highlight anything bought or disposed of during the year.

Director's loan account statement. A clear record of all transactions between you and the company, with supporting documentation.

Dividend documentation. Board minutes and dividend vouchers for all dividends paid during the year.

Stock valuation. If you hold stock, a count and valuation at year-end. Include any write-downs for damaged or slow-moving items with explanations.

Outstanding debtors and creditors. Lists of who owes you money and who you owe at year-end, with any bad debt documentation.

PAYE records. Payroll summaries, P60 information, and confirmation of all RTI submissions.

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DIY vs Accountant at Year-End

Should you handle year-end yourself or engage a professional?

Consider DIY if:

• Your company is straightforward (simple trading, few transactions)
• You're confident with accounting principles
• Your books are well-maintained throughout the year
• You have time to learn filing requirements

Consider an accountant if:

• Your company has complex transactions (multiple income streams, overseas dealings)
• You want tax planning advice specific to your situation
• Time is more valuable than accountant fees
• You're uncomfortable with filing requirements or HMRC interaction
• This is your first year-end

The hybrid approach: Many directors maintain books themselves using software like AccountsOS, then have an accountant review and file the final accounts. This combines the cost savings of DIY bookkeeping with professional oversight at year-end.

For more guidance, see our article on whether you need an accountant for your limited company.

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How AccountsOS Helps with Year-End

Year-end preparation is dramatically simpler when your books are accurate and up-to-date throughout the year. AccountsOS provides the tools to make year-end a non-event rather than an annual crisis.

Real-time reconciliation: Bank feeds keep your records synchronised. Monthly reconciliation becomes a five-minute check rather than an annual marathon.

Intelligent categorisation: Transactions are categorised as they arrive. By year-end, your books are already organised and ready for review.

Deadline tracking: Never miss a filing deadline. AccountsOS monitors all your compliance dates and alerts you in advance.

Year-end reporting: Generate the reports your accountant needs with a click. No more hunting through spreadsheets or bank statements.

Tax estimation: See your projected Corporation Tax liability update in real time as transactions flow in. No year-end surprises.

See how it works to learn more about streamlining your year-end process.

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Frequently Asked Questions

When should I start my year-end preparation?

Start at least 3 months before your accounting period ends. This allows time for strategic tax planning decisions (pension contributions, equipment purchases) and gives you a buffer for any issues discovered during reconciliation. Leaving it to the final week severely limits your options and increases stress.

Can I change my company year-end date?

Yes, you can change your accounting reference date by filing form AA01 with Companies House. You can shorten your accounting period at any time or extend it once every five years (up to 18 months maximum). Strategic reasons for changing include aligning with the tax year, smoothing profits between periods, or timing around major business events.

What happens if I miss the year-end deadline for tax planning?

Most year-end tax planning opportunities are lost once your accounting period closes. Pension contributions, equipment purchases, and expense prepayments all need to happen before year-end to count in that period. However, you can start planning for next year immediately, and some reliefs (like R&D tax credits) can be claimed up to two years after the end of the accounting period.

How do I handle expenses I forgot to claim?

If the expense was incurred during your accounting period but not recorded, you can still include it in your accounts if you have documentation. If you discover expenses after accounts are filed, you may need to amend your return (possible within 12 months of the filing deadline for Corporation Tax returns).

Should I clear my director's loan account before year-end?

If your DLA is overdrawn (you owe the company money), clearing it before year-end avoids the 33.75% Section 455 tax charge. Options include repaying the loan, declaring dividends to offset it, or ensuring legitimate expenses are properly processed against the loan. Be aware of the "bed and breakfasting" rules if repaying temporarily.

What records do I need to keep after year-end?

Keep all financial records for at least 6 years from the end of the accounting period. This includes invoices, receipts, bank statements, contracts, and all supporting documentation. HMRC can enquire into Corporation Tax returns for up to 4 years (longer if they suspect fraud), and Companies Act requirements extend to 6 years.

Can I submit my accounts early?

Yes, you can file annual accounts with Companies House any time after your year-end, up to the 9-month deadline. You can also file your Corporation Tax return early, though you should wait until you're confident the figures are final. Filing early starts the enquiry window running sooner but demonstrates good governance.

What's the difference between year-end and filing deadline?

Your year-end (accounting reference date) is when your accounting period closes. Your filing deadline is when documents must be submitted to Companies House and HMRC. For annual accounts, the filing deadline is 9 months after year-end. For Corporation Tax returns, it's 12 months after year-end. Corporation Tax payment is due 9 months and 1 day after year-end.

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Take Action Now

Your company year-end is both a compliance requirement and a planning opportunity. The directors who extract maximum value from their companies are those who prepare systematically, not those who scramble at the last minute.

Your next steps:

1. Check your calendar for your year-end date
2. Work backwards to set preparation milestones
3. Download or print this checklist
4. Begin with the items furthest in advance
5. Review progress weekly as year-end approaches

With proper preparation, year-end becomes a straightforward process rather than an annual headache. Start your preparation today, and you'll thank yourself when filing time arrives.

For more tax planning strategies, see our year-end tax planning guide, or review limited company accounting requirements to understand your ongoing compliance obligations.

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This checklist reflects UK company law and tax regulations as of January 2025. Requirements may change, and individual circumstances vary. Consider professional advice for complex situations or significant tax planning decisions.