UK New Tax Year Checklist for Small Businesses

The UK tax year turns over on 6 April, and for a small business that date is a natural reset button. This UK new tax year checklist helps you close out the old year cleanly, update the things that change every April and set up simple habits for 2027/28, so next January feels calm instead of frantic.

A minimalist wall calendar with clean pages and a pen resting beside it on a plain surface — One afternoon around 6 April can set up your whole tax year.

Key takeaways

The UK 2027/28 tax year starts on 6 April 2027, so the days just before and after are the best time to tidy records and reset your systems.
Close out 2026/27 first: reconcile your bank, chase missing receipts and note anything unusual while you still remember it.
Payroll, pensions, allowances and rates can change each April. Check HMRC's current figures rather than relying on last year's.
Set a fixed percentage of income aside for tax from the first week of the new year, and review it every quarter.

Most small business owners only think about tax when a deadline is close. That is understandable, because running the business takes most of your attention. But the start of a new tax year is the one moment when the old year is finished and the new one is still a blank page. A couple of hours of admin now saves days of digging through emails and bank statements later.

This checklist is written for sole traders, partnerships and owners of small limited companies in the UK. Some steps apply to everyone, others only if you employ staff or run a company. It is general information, not tax advice. Your situation may differ, so check the details on GOV.UK and speak to an accountant or tax adviser before making big decisions.

6 April 2027 The first day of the UK 2027/28 tax year. The 2026/27 tax year ends the day before, on 5 April 2027. HMRC

Close out the 2026/27 tax year properly

Before you plan anything new, make sure the old year is complete. Your tax return for 2026/27 is filed later, but the records behind it are easiest to fix now.

Reconcile every bank and card account to 5 April. Match each transaction in your bookkeeping to the bank feed. Unmatched items usually mean a missing receipt, a duplicated entry or a personal payment from the business account.
Chase missing receipts and invoices. Search your inbox for suppliers you paid but cannot find paperwork for. Many online services let you download old invoices from your account page.
List money owed to you and money you owe. Note unpaid customer invoices and unpaid supplier bills at the year end. Your accountant may need these, depending on how your accounts are prepared.
Count stock if you hold any. A simple count of what is on your shelves at the year end helps your accounts reflect reality.
Write a short year-end note. Record anything unusual: a large equipment purchase, a new loan, a vehicle change, a month you were closed. You will forget these details by the time the return is due.

Pro tip

Create a folder called "Tax year 2026-27" and drop everything into it now: bank statements, the year-end note, your mileage log and any letters from HMRC. When your accountant asks for something, it is already in one place.

Update payroll for the new tax year

If you employ anyone, including yourself through a limited company, April is a busy month for payroll. Tax codes, thresholds and rates can change at the start of each tax year, and your payroll needs to reflect them from the first pay day after 6 April.

Check your payroll software has updated. Most payroll tools roll the new year's figures in automatically, but confirm the update has run before your first April payroll.
Apply new tax codes. HMRC sends tax code notices for employees whose codes change. Make sure these are entered before you run payroll.
Review minimum wage rates. Rates for the National Minimum Wage and National Living Wage are usually updated each April. Check the current rates on GOV.UK and adjust pay for anyone affected.
Send end-of-year forms. Employees who were with you at the end of the tax year should receive their P60 by the deadline HMRC sets. Check the current date and diarize it.
Review pension contributions. If you run a workplace pension under auto-enrolment, check whether any earnings thresholds or contribution settings need updating, and reassess any staff whose pay has changed.

Part-time staff deserve the same attention. In the UK, part-time workers have the right not to be treated less favorably than comparable full-time workers, so any pay rises or benefit changes in April should apply fairly across the team.

Common mistake

Running the first April payroll on last year's settings because "nothing has changed." Even small changes to thresholds or minimum wage rates can mean underpaying staff or deducting the wrong amount of tax. Always check the new year's figures before the first pay run.

Review how you pay yourself

The new tax year is the right moment to look at how money moves from the business to you. Allowances and bands usually apply per tax year, so decisions made early in the year are easier to plan around than last-minute ones in March.

If you are a sole trader

Your profit is taxed as your income, whether you draw it out or not. The practical question is how much to set aside. Look at last year's profit and tax, then pick a percentage of each payment you receive to move into a separate tax savings account. If your profit is growing, raise the percentage rather than lowering it.

If you run a limited company

Many directors take a combination of salary and dividends. The mix that makes sense depends on current allowances, rates and your personal circumstances, which can change from year to year. Agree a plan for 2027/28 with your accountant now, rather than declaring dividends whenever the bank balance looks healthy. Keep board minutes and dividend paperwork for each payment.

Company cars and other benefits

If the business provides a company car to you or a team member, remember that it is a taxable benefit in kind. The same applies to some other perks. Review any benefits you provide, confirm how they are reported and decide whether they still make sense for the year ahead.

Reset your bookkeeping and tax pot

A fresh tax year is the easiest time to change a habit, because there is no messy middle to fix. Choose two or three improvements and put them in place in the first week of April.

Separate business and personal spending completely. If you still mix them, open a dedicated business account and move all business payments to it from 6 April.
Set a weekly bookkeeping slot. Thirty minutes every Friday to categorize transactions and attach receipts beats a weekend of catch-up every quarter.
Automate your tax transfer. Set a standing order or a rule in your banking app that moves a fixed share of income into a separate savings pot.
Start a fresh mileage log. If you use a personal vehicle for business trips, record date, purpose and distance from the first day of the new year.
Check your digital record keeping. Making Tax Digital requirements are expanding for some businesses, so check on GOV.UK whether and when they apply to you.

A close-up of a printed calendar page showing the month of March with numbered date squares — As March ends, the old tax year wraps up and your new routines can begin.

Plan your key dates for 2027/28

Most stress around tax comes from deadlines that sneak up. Put the important dates for the whole year into your calendar now, with a reminder two weeks before each one. Your list will depend on your business, but it often includes:

Self Assessment filing and payment dates, including any payments on account
VAT return and payment dates, if you are VAT registered
Corporation Tax payment and filing dates, and the Companies House confirmation statement and accounts dates, if you run a company
Payroll dates for reporting and paying HMRC each month, if you employ people
Renewal dates for business insurance, licenses and key subscriptions

Check each date on GOV.UK or with your accountant, because some depend on your company's year end or your VAT period rather than the tax year itself.

A new tax year task tracker template

Copy this table into a spreadsheet and add one row per task. The examples below are made up for illustration only.

Task	Applies to	Owner	Due by (example)	Status	Notes
Reconcile bank to 5 April	All businesses	Owner	16 April	In progress	Two card payments missing receipts
Update payroll and tax codes	Employers	Bookkeeper	Before first April pay run	Done	Software update confirmed
Agree salary and dividend plan	Limited companies	Owner and accountant	30 April	Not started	Book a call this week

Add a column for "next review" if you want the tracker to work as a year-round tool rather than an April-only list.

Hypothetical example

Priya runs a small design studio as a limited company with two part-time employees. On 3 April she blocks out a Friday afternoon. She reconciles both bank accounts to 5 April and finds one supplier invoice she forgot to log. She checks that her payroll software has updated, enters a new tax code notice for one employee and confirms the minimum wage rate for her junior assistant. On 7 April she books a call with her accountant to agree a salary and dividend plan, then sets an automatic transfer of a fixed percentage of every customer payment into a tax savings account. Total time: about four hours, and her year-end folder is already complete.

Review pricing, costs and goals for the year

A new tax year is also a sensible point for a quick business health check. Tax admin tells you what happened; this step shapes what happens next.

Compare your profit to last year. Did revenue grow faster than costs, or the other way round? A quick look at your profit and loss report will tell you.
Review your prices. If your costs, wages or supplier prices have gone up, decide whether your prices need to follow. Give existing customers fair notice.
Cancel unused subscriptions. Scroll through last year's card statements and cancel software and services you no longer use.
Plan big purchases. If you expect to buy equipment or a vehicle, talk to your accountant about the timing and how the purchase is treated for tax.
Set two or three goals. For example, a revenue target, a cash buffer target and one admin habit you want to keep all year.

If you are close to the VAT registration threshold, keep a running total of your taxable turnover each month so you notice in time. The current threshold and rules are on GOV.UK.

Your UK new tax year checklist

Reconcile all bank and card accounts to 5 April 2027
Chase missing receipts and save them to a "Tax year 2026-27" folder
Write a year-end note of unusual events, purchases and changes
Confirm your payroll software has updated for 2027/28
Enter new tax codes and check current minimum wage rates
Diarize P60 and other end-of-year payroll deadlines
Agree how you will pay yourself in 2027/28
Set an automatic transfer into a separate tax savings pot
Start a fresh mileage log and weekly bookkeeping slot
Add every key tax and filing date to your calendar with reminders

Frequently asked questions

Why does the UK tax year start on 6 April?

It is a long-standing historical quirk linked to old calendar changes. What matters in practice is that the UK tax year runs from 6 April to 5 April, so your personal tax records and many allowances follow those dates.

Does my limited company follow the same tax year?

Not necessarily. A company has its own accounting period and year end, which can be any date. Payroll and your personal tax still follow the 6 April tax year, so many directors deal with two calendars at once.

Do I have to file my tax return straight after 5 April?

No. The tax return for 2026/27 has a later deadline. But you can file earlier, and gathering your records now makes that much easier. Filing early also tells you your bill sooner, so you can plan for it.

How much should I set aside for tax?

There is no single right number, because it depends on your profit, structure and personal situation. Use last year's tax bill as a guide, pick a percentage of income that comfortably covers it and review it quarterly. An accountant can help you set a figure that fits.

The bottom line

The new tax year is a gift for busy owners: a clean start with a clear deadline. Close out 2026/27 while the details are fresh, update payroll before your first April pay run, decide how you will pay yourself and put a simple tax savings habit in place from day one.

Block out an afternoon around 6 April, work through the checklist and fill in the tracker. Twelve months from now, you will open a tidy folder instead of a shoebox.