Stay Ahead of the Curve: 7 Mid-Year Tax Moves
7 Smart Mid-Year Tax Moves Every SME Director Should Make in 2025
June/ July is the perfect time for small business owners and directors to pause, review, and plan. Don’t wait until the year-end to think about tax. These mid-year steps could save you money—and headaches—down the line.
Here’s what to focus on:
1. Check Your Profit Position
Are you making more—or less—than expected? A quick review of your management accounts gives you clarity. This helps with tax planning and decision-making for the rest of the year.
2. Review Your Salary & Dividend Mix
If you're paying yourself a low salary and dividends, check if it's still working. Your profit levels, tax thresholds, and personal situation may have changed.
💡 Top Tip: Consider declaring interim dividends if your company has built up profits.
3. Use Investment Allowances Wisely
Thinking of buying a new laptop, software, or equipment? You might be able to claim 100% tax relief through Annual Investment Allowance or Full Expensing.
💡Top Tip: Buying before your year-end means earlier tax savings.
4. Consider Pension Contributions
Company-paid pension contributions are tax-deductible and NIC-free. If there’s surplus cash, it’s a smart way to reduce Corporation Tax and invest in your future.
5. Check If You Qualify for R&D Relief
If you’re building tech, improving systems, or developing new products, you could claim R&D tax relief—even as a startup. It's one of the most valuable reliefs available.
6. Clean Up Your Bookkeeping
Keep your records tidy. Ensure receipts are uploaded, expenses are claimed, and your accounts are up to date. Good records = easier year-end and fewer surprises.
✅ Pro Tip: Use tools like Dext or Xero to stay on top of things.
7. Stay Ahead of HMRC Deadlines
Corporation Tax, VAT, PAYE—it’s easy to miss deadlines when you're busy. Set reminders and keep an eye on any rule changes like Making Tax Digital or basis period reform.
Final Thought
Mid-year planning doesn’t have to be complicated. It’s about making small but smart adjustments while there’s still time. A 30-minute review with your accountant could mean real tax savings by next March.
🔍 Need a mid-year check-in? We’re here to help!
Email us at: info@satya.accountants