# Before 5 April 2026: The UK Director's Tax Year End Action List Last updated: 10 June 2026 UK limited company directors have until 5 April 2026 to use their dividend allowance (£500), ISA allowance (£20,000), CGT annual exemption (£3,000), and trivial benefits allowance (£300) — none of which carry forward. The pension annual allowance (£60,000) can be carried forward three years. Acting before the deadline could save hundreds to thousands depending on your position. 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](/blog/pension-contributions-limited-company-uk) 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](/blog/optimal-directors-salary-2026-27) 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](/blog/home-office-expenses-limited-company) 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 | Allowance | 2025/26 Amount | Carry Forward? | |-----------|---------------|----------------| | Dividend allowance | £500 | No | | ISA allowance | £20,000 | No | | CGT annual exempt amount | £3,000 | No | | Trivial benefits (director) | £300 | No | | Pension annual allowance | £60,000 | Yes (3 years) | | Personal allowance (salary) | £12,570 | No | --- ## 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](/blog/salary-vs-dividends-uk-2025-26) - **Business Asset Disposal Relief** rises to 18% (from 14%) - **Benefits in kind payrolling** becomes mandatory for new benefits - **[MTD for Income Tax](/blog/mtd-income-tax-april-2026)** launches for directors with income over £50,000 These don't require action before 5 April, but they should inform your 2026/27 planning. --- ## Doing This Without Spreadsheets AccountsOS tracks your dividend history, flags upcoming deadlines, and can answer questions like "have I used my dividend allowance this year?" or "what's my company's retained profit right now?" — in plain English. 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