Essential tax planning for small businesses in Dorking, Tadworth and surrounding areas in Surrey and Sussex
If you run a small limited company, you’re probably spinning more plates than you’d like. And for many directors across Dorking, Tadworth, Reigate and the surrounding Surrey & Sussex areas, tax planning is something that only happens once the year has already finished.
The problem? By that point, it’s usually too late to make meaningful changes.
That’s why a pre-year-end review is so valuable. By checking in with your accountant 1–3 months before your year closes, you get the chance to tidy up your figures, make smart tax-saving decisions and prepare for the year ahead with confidence.
Below, we explain the six key reasons a pre-year-end review can save you time, stress and money.
1. Optimise Your Salary & Dividend Strategy Before Year-End
Your salary–dividend mix has a major impact on your tax bill, but it can only be adjusted before your year-end.
During the review, your accountant can help you:
- Set your salary at the most tax-efficient level
- Assess whether additional dividends are possible
- Ensure the company has enough retained profits to pay dividends legally
- Avoid slipping into higher-rate brackets
- Plan around Child Benefit, student loan or personal allowance thresholds
This is a common issue for small business owners in Dorking, Tadworth, Leatherhead, Reigate, Horsham and across Surrey/Sussex.
Read our guide on running company and rules here.
Want to review your director pay strategy? Contact us today.
2. Use Pension Contributions Strategically
Pension contributions can be an powerful tax planning tool, when viewed purely from a tax perspective.
From a tax standpoint:
- Company pension contributions may reduce corporation tax
- They’re typically an allowable expense
- Timing matters, contributions before year-end impact this year’s figures
A review helps ensure contributions align with your projected profits and overall tax planning.
3. Use Allowances Before They Reset
If you don’t use certain allowances before year-end, you lose them.
A review helps ensure you make the most of:
- Annual Investment Allowance (AIA)
- Capital allowances (tools, equipment, EVs)
- Director trivial benefits (£300)
- Training and development costs
- Home office and mileage claims
- Electric vehicle charging costs
In busy areas like Dorking, Tadworth, Horsham and the wider Surrey/Sussex region, directors often miss out on tax relief simply because they didn’t know what was available. A review ensures you use what you’re entitled to.
4. Fix Bookkeeping Issues Before They Become Expensive
Bookkeeping problems can inflate your tax bill, delay your year-end or even cause compliance issues. A pre-year-end check can catch:
- Miscategorised expenses
- VAT errors
- Duplicate entries
- Unreconciled bank accounts
- Incorrect payroll postings
- Director’s loan account issues
Small businesses in Surrey’s surrounding areas often juggle multiple systems, bank feeds, or payment platforms. Fixing errors early avoids delays, prevents additional fees, and keeps your year-end running smoothly.
We also help clients using Xero accounting software to ensure their records are accurate and up to date.
Need help reviewing your bookkeeping before year-end? Get in touch.
5. Reduce Your Corporation Tax With Smart Timing
Your corporation tax bill is heavily influenced by what you do before the year closes.
A pre-year-end review helps you decide whether to:
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Accelerate or delay income
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Bring forward necessary purchases
- Adjust stock levels
- Make charitable donations before year-end
These decisions can significantly reduce your corporation tax — but only if taken in time.
6. Strengthen Cashflow & Plan for the Year Ahead
A review is not only about tax, it also prepares you for next year.
Your accountant can help forecast:
- Corporation tax payment dates
- VAT deadlines
- PAYE and pension obligations
- Your personal tax bill
- Seasonal cashflow fluctuations
- Opportunities to reinvest
This is especially useful for small businesses with irregular income patterns.
Ready to plan ahead with confidence? Contact us to book your pre-year-end review.
What Happens During a Pre-Year-End Review?
A pre-year-end review with Smart Accountants Sussex & Surrey is practical, focused and designed to save you money. Here’s what you can expect:
1. A clear snapshot of your current profit position
We review your year-to-date figures so you know how much tax you’re on track to pay, and where the opportunities lie.
2. Salary & dividend optimisation
We check whether your director pay mix is set at the most tax-efficient level and make adjustments while you still can.
3. Pension contribution review (purely from a tax perspective)
We assess whether company pension contributions could reduce corporation tax and how any changes affect cashflow.
4. Full allowances & reliefs check
Including AIA, capital allowances, trivial benefits, training costs, home office claims and EV charging, ensuring nothing is missed before year-end.
5. Bookkeeping & compliance health check
We identify VAT issues, miscategorised expenses, unreconciled accounts and director’s loan account problems before they become costly.
6. Forward-looking tax & cashflow forecast
We outline upcoming corporation tax dates, VAT deadlines, payroll obligations and your personal tax bill.
7. A tailored action plan before year-end
You leave with a simple, prioritised checklist showing exactly what to do to improve your tax position and tidy up your records.
Final Thoughts
A well-timed pre-year-end review doesn’t just save tax, it gives you clarity, confidence and control over your business finances. If you want to make smarter decisions before your year closes, we’re ready when you are.
Frequently Asked Questions
1. What is a pre-year-end review?
A meeting held before your company’s year-end to identify tax-saving opportunities while they still exist.
2. When should I book one?
Ideally 1–3 months before your year-end.
3. Can a pre-year-end review reduce my tax bill?
Yes — especially when combined with salary planning, allowances and timing adjustments.
4. Do pension contributions reduce corporation tax?
They may do, when made correctly and considered purely as a tax-deductible business expense.
5. Should directors review allowances before year-end?
Yes — many allowances expire at year-end if not used.
6. How do bookkeeping issues affect tax?
Errors may inflate taxable profit, misstate VAT or impact dividends.
7. Does timing income matter?
Yes — timing is a major factor in corporation tax planning.
8. Does a review help with cashflow?
Absolutely — it forecasts upcoming obligations and supports better decision-making.
9. Is this important for businesses in Surrey & Sussex?
Yes — especially those with fluctuating income or limited admin time.