Before 5 April 2026: The UK Director's Tax Year End Action List

The personal tax year ends on 5 April 2026. That gives UK limited company directors roughly six weeks to take actions that could save hundreds — or thousands — in tax.

Unlike your company year-end, 5 April is fixed. There is no extension. Miss it and the allowances are gone.

This is a checklist, not a guide. Each item has a yes/no action and an indicative saving.

The Checklist

1. Pay yourself a dividend before 5 April

The dividend allowance for 2025/26 is £500. This is the amount you can receive in dividends tax-free (above your personal allowance).

From 6 April 2026 the allowance stays at £500, so there is no particular reason to delay — but if you have profits sitting in the company and haven't taken dividends this year, now is the time.

Tax saving: Up to £168.75 (higher rate taxpayer using the full £500 allowance)

Action: Check your retained profits. If they exist and you haven't taken dividends this year, declare a dividend before 5 April. Document it with a board minute and dividend voucher.

2. Max your ISA allowance

The ISA allowance for 2025/26 is £20,000. It disappears at midnight on 5 April — it cannot be carried forward.

As a director, you're likely taking dividends rather than a high salary. ISA contributions are made from after-tax income, but growth and withdrawals inside an ISA are completely tax-free forever.

Tax saving: Depends on investments, but sheltering £20,000 of investments from future dividend or CGT tax is significant long-term.

Action: If you haven't used your ISA this year, transfer or invest up to £20,000 before 5 April. Many platforms let you do this in minutes.

3. Make a pension contribution before 5 April

Your company can contribute directly to your personal pension as an employer contribution. This is:

• A legitimate business expense (reduces Corporation Tax)
• No employer National Insurance (unlike salary)
• No income tax for you personally
• Within the annual allowance of £60,000 (or 100% of salary if lower — note: this is personal earnings, so if your salary is £12,570 your personal limit is £12,570, but employer contributions have no earnings limit)

The carry-forward rules allow you to use unused allowances from the previous three tax years — but only if you were a member of a registered pension scheme in those years. A 2025/26 contribution uses this year's allowance first.

Tax saving: At 25% Corporation Tax rate, a £10,000 company pension contribution saves £2,500 in Corporation Tax immediately.

Action: Speak to a financial adviser if unsure of limits. Instruct your company to make a pension contribution before your company's year-end (not just before 5 April — it needs to fall in the right accounting period for CT relief).

4. Check your salary is set correctly for 2025/26

The optimal director salary for 2025/26 is £12,570 (the personal allowance). This:

• Uses your full personal allowance
• Maintains your State Pension qualifying year
• Avoids employee NI (the secondary threshold is £9,100, so you'll pay a small amount of employer NI above this — many directors accept this for the State Pension benefit)

If you're paying yourself less than £12,570 or more than £12,570 as salary (rather than making it up in dividends), check whether your structure is optimal.

Action: Review your payroll. If your salary isn't at £12,570, speak to an accountant before 5 April about whether to adjust it this year.

5. Claim use-of-home allowance

If you work from home and your company hasn't paid you a use-of-home allowance this year, it can still do so before 5 April (or before your company year-end).

The HMRC flat rate is £6/week (£312/year) with no receipts required. You can claim a higher amount if you calculate actual costs (a portion of mortgage interest/rent, utilities, council tax proportional to rooms used).

Tax saving: £312 is a small but genuine deduction. Worth the 10 minutes it takes.

Action: Have your company pay you £312 or a calculated actual-cost amount. Keep a brief note of how you calculated it.

6. Use your annual trivial benefits allowance

Directors of close companies can receive up to £300/year in trivial benefits — completely tax and NI-free. Each benefit must be under £50 and cannot be cash or a cash voucher.

Examples: gift cards for specific retailers, flowers, a bottle of wine, an event ticket.

This allowance resets on 6 April. If you haven't used it this year, you have until 5 April.

Tax saving: £300 of tax-free value. The saving depends on your marginal rate — for a higher-rate taxpayer this is roughly £135 in avoided personal tax.

Action: Purchase something under £50 for yourself before 5 April. Keep the receipt. Note it as a trivial benefit in your records.

7. Review your Capital Gains Tax position

The CGT annual exempt amount for 2025/26 is £3,000 for individuals. CGT rates on investment gains are 18% (basic rate) or 24% (higher rate).

If you have gains to crystallise from investments outside an ISA, consider whether doing so before 5 April uses your annual exemption efficiently.

From April 2026, Business Asset Disposal Relief (on qualifying business disposals) rises from 14% to 18% — so if you're planning to sell business assets, the timing matters.

Action: Review any investment gains. Consider whether to sell and rebuy (bed and ISA) to use the £3,000 exemption before it resets.

8. Check you're registered for Self Assessment

If you:

• Received more than £10,000 in dividends this year
• Had income over £150,000
• Are a new director who hasn't filed before

...you need to be registered for Self Assessment. The deadline to register for 2025/26 is 5 October 2026, but it's worth confirming now rather than discovering a penalty later.

Action: Log into your HMRC personal tax account and confirm you're registered for Self Assessment. If not, register now.

What Expires on 5 April

The Changes Coming in April 2026

While you're thinking about year-end, it's worth knowing what changes from 6 April 2026:

• Employer NI rises to 15% (from 13.8%) — affects how you structure salary vs dividends
• Business Asset Disposal Relief rises to 18% (from 14%)
• Benefits in kind payrolling becomes mandatory for new benefits
• MTD for Income Tax launches for directors with income over £50,000

These don't require action before 5 April, but they should inform your 2026/27 planning.

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