How to plan for the 2026/27 tax year

With the London Marathon and the new tax year starting in the same month, there are comparisons to be made between the tasks set for runners and limited companies.

​Getting prepared, having the right tools at your disposal and being organised will help make the journey as smooth as possible.

This guide will explain notable dates, what’s changed for this tax year and how you can plan for VAT returns.

Here are seven ways to get ahead for 2026/27.

1. Keep your records up to date

Making sure your financial records are accurate and up to date can be key to a less stressful year. A limited company need to keep six years’ worth of financial records, which must be separate from its directors and owners.

Setting up a system so you can easily present your company’s bills, statements and expenses at any time can save you a lot of admin later.

The right accounting software to organise those finances can make this process much simpler, so assess whether the software you have suits your business needs.

For example, if your business is VAT-registered, does your software have the necessary support for VAT and tax bills? Or is managing payroll a feature you need to prioritise for?

Decide what you require and choose the best option so you have the right tool to maintain accurate records throughout the year.​

2. Organise your calendar

Another piece of admin that can make the year easier to navigate for your business is marking key dates in your calendar. 

Here are some key dates to mark in your calendar:

• Annual accounts: File with Companies House within nine months after your company’s financial year ends

• Corporation tax payment: Pay HMRC within 9 months and one day after your accounting period ends 

• File company tax return: To be completed within 12 months after your accounting period ends

If you’re filing your company’s first accounts, you must do so within 21 months of the date you registered with Companies House.

If your business is VAT-registered, the deadlines to file your returns will depend on your VAT accounting period, so confirm the dates using your VAT online account. Add those deadlines to your calendar so there are no unexpected expenses to cover later in the year.

This tax year, there are changes in how you file a corporation tax return. 

As HMRC closed its Company Accounts and Tax Online (CATO) service, unless you have an agreed exemption, you must now file a corporation tax return using specific software that produces iXBRL (Inline eXtensible Business Reporting Language) accounts and computations.

HMRC has published a list of appropriate suppliers that allow you to file your return and accounts together.

3. Learn what’s changed for 2026/27  

To get ready for 2026/27, it’s important to know what else has changed since the previous tax year.

One difference is the level of dividend tax to pay, as shown in this table: 

The basic rate covers dividend income between £12,571 and £50,270, and the higher rate is for dividend income between £50,271 and £125,140. The tax-free dividend allowance will remain at £500.

Any tax you need to pay on dividend income should be declared with a self-assessment return by January 31, 2027. Remember to calculate your payment and include it in your business outgoings.

4. Review your VAT threshold

If your taxable turnover over any 12-month period is over £90,000, then you legally need to be VAT-registered.

However, if your business is not, it might be worthwhile to do so voluntarily. There are advantages and disadvantages of being VAT-registered if your business turnover is under the threshold.

​Pros: 

• Business credibility: It can make your business appear more credible and appealing to clients and investors

• New opportunities: Opens up working with other companies that only deal with fellow VAT-registered firms

• Potential reclaim: If you’ve paid more on purchases than you have on sales, you’ll get a refund from HMRC

Cons:

• More admin: You’ll have extra admin to do, as you’ll have to keep track of the VAT you’ve charged and paid to other firms

• Price impact: As you charge VAT on the goods you sell, it could mean raising your prices, which could impact sales

• VAT bills: Potential for high VAT bills if you charge more VAT than you get back

Before you make a decision, you can check using the HMRC tool, which estimates the impact being VAT-registered could have on your business.  

5. VAT payment plans

While you might have the funds to cover VAT returns, there are some circumstances where a VAT loan might be a better-suited way to pay for them.

​A VAT loan can help to improve cash flow by spreading the cost over a longer period of time, which is usually over three, six, nine or 12 months.

​The funds are often paid within 24-48 hours, and many lenders can send the money directly to HMRC to save you from making the payment and potentially spending it elsewhere.

The borrowing is usually secured against an asset, and the rates are typically higher than other business finance, although this will depend on how much you borrow and your business credit history.

Check whether a VAT loan would benefit your business in the next tax year.

6. Set out your cash flow forecast

An accurate cash flow forecast can put you in a great position to make important decisions for your business in 2026/27. 

Knowing how much cash is coming in and out of your business will let you better assess how to plan for the year. It allows you to make an informed decision to avoid financial issues before they happen.

You might decide to cut costs or expand, depending on how your forecast looks. Make sure to be realistic with your sales and keep your records as detailed as possible.

It might also be useful to set aside a different account to cover outgoings like VAT or self-assessment payments. This will keep those payments separate and might be another boost to being organised for the year ahead.

7. Explore tax relief options

As well as setting aside cash to pay for your tax bills, part of your forecast can also be to explore what business tax relief you could be entitled to.

​The options available will depend on a range of factors, including the sector of your business and the eligibility criteria.​

There is a wide range of tax relief options available, including:

• ​Small Business Rate Relief

• Annual Investment Allowance

• Employment Allowance

As you can claim up to four years’ worth of missed tax relief, speak to an independent financial adviser to understand what you could be eligible for.