5 Tax-Saving Wins for South West Business Owners

It’s that time of year again. The days are getting longer, the daffodils are out across Somerset, and the UK tax year is rapidly drawing to a close.

While we at Dolmans Accountants won’t be asking for your 2025/26 records for a few months yet, there is a small window of opportunity right now that you don’t want to miss. Once the clock strikes midnight on 5th April, many of your most valuable tax allowances reset or disappear forever.

If you’re looking for a proactive accountant in Bristol, Bath, or Taunton, here are five “use it or lose it” wins you should consider before the deadline.

1. Maximise Your Pension Contributions

Pensions are one of the most efficient ways to reduce your tax bill. For most people, the annual allowance is £60,000. By contributing before 5th April, you can significantly reduce your taxable income.

If you are a higher-rate taxpayer, this is particularly effective. Not only does the contribution grow tax-free, but it can also help you pull your income back below key thresholds (like the £100,000 mark where you start losing your Personal Allowance).

2. Don’t Let Your ISA Allowance Go to Waste

You have a £20,000 ISA allowance every year. Whether you prefer a Cash ISA or Stocks and Shares, any growth or interest earned inside that wrapper is completely tax-free.

Unlike some other business expenses, you cannot “carry forward” an unused ISA allowance to next year. If you have the cash sitting in a standard savings account, moving it into an ISA before the deadline is a no-brainer for long-term tax efficiency.

3. Use Your £3,000 Capital Gains Exemption

Planning on selling some shares or a piece of property? For the 2025/26 tax year, the Capital Gains Tax (CGT) exemption is £3,000.

If you have assets that have increased in value, it might be worth “crystallising” some of those gains now to use up this year’s tax-free limit. If you wait until 6th April, you’ll be starting from scratch on a new year’s allowance.

4. Review Your Dividend Strategy

For many of our limited company clients in the South West, dividends are a key part of how they pay themselves. You currently get a £500 tax-free dividend allowance.

Beyond the allowance, it’s also worth looking at the tax bands. With dividend tax rates set to rise by 2% for basic and higher-rate taxpayers from 6th April 2026 (increasing to 10.75% and 35.75% respectively), taking a planned dividend before the change could save you a significant amount in the long run.

5. Thinking Ahead: The MTD Transition

While we don’t need your paperwork today, it is worth noting that Making Tax Digital (MTD) for Income Tax officially kicks off in April 2026 for those earning over £50,000.

If you are still using spreadsheets or paper ledgers, this final month of the tax year is the perfect time to trial digital software. It gives you a “clean break” to start the new year on a digital footing, making life much easier when the mandatory rules arrive.

Need a hand with your year-end planning?

At Dolmans Accountants, we help businesses across Bristol, Bath, and Taunton stay ahead of the curve. You don’t need to have your receipts ready to have a conversation about your tax strategy.