Accountancy

Pre-Year End Tax Planning Delivers £64,000 Corporation Tax Saving

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Corporation Tax Planning

For owner-managed businesses, the months leading up to a financial year end represent one of the most valuable windows for tax planning. Without a structured review in place, profitable companies can find themselves facing avoidable liabilities simply because the right questions weren't asked in time. Timing and preparation are everything — and the difference between reactive and proactive advice can be considerable.

Strategic Tax Advice for Owner-Managed Businesses

The P10 Accountancy team works closely with director-shareholders to identify and implement legitimate tax planning opportunities before year end deadlines pass.

In this case, we were approached by a long-established owner-managed company ahead of its March 2026 year end. The business had enjoyed a strong trading year and had accumulated significant cash reserves. With four active director-shareholders — all operating Self-Invested Personal Pensions — there was a clear opportunity to combine immediate tax efficiency with longer-term commercial planning.

Our detailed pre-year end review projected profit before tax of approximately £320,000, creating an estimated corporation tax liability of £80,000 at the prevailing rate.

We carried out a full review of pension contribution opportunities available to each director, including current annual allowances, unused brought-forward allowances from prior years, and the corporation tax treatment of employer contributions. We prepared three separate planning scenarios — each clearly illustrating taxable profit positions, estimated liabilities, and cash retained within the business and pension structures — allowing the directors to make a fully informed decision before the year end closed.

Delivery For Our Clients

The solution we delivered was as follows.

Projected profit before planning — £320,000
Taxable profit after planning — £80,000
Original corporation tax estimate — £80,000
Revised corporation tax liability — £16,000
Corporation tax saved — £64,000
Directors benefiting — 4

This solution delivered on all objectives for our clients:

✔ Reduced the corporation tax liability by £64,000 through legitimate pension planning

✔ Retained long-term value within the directors' pension arrangements rather than losing it to tax

✔ Established a foundation for future SIPP property acquisition and leaseback — creating a tax-efficient structure for the business going forward

Tax Planning for Owner-Managed Businesses

Are you approaching a financial year end and looking to review your corporation tax position? Do you want to understand how pension planning could work alongside your wider business strategy? Our accountancy team specialises in proactive, commercially-led tax advice for owner-managed businesses. Get in touch to explore what planning opportunities may be available before your year end passes.

A £64,000 Saving Before the Year End Closed: Strategic Pension and Tax Planning for a Growing Business

For owner-managed businesses, the period immediately before a financial year end is often the most important window for legitimate tax planning. With the right advice in place early enough, profitable companies can significantly reduce their tax exposure while simultaneously building long-term financial value for their directors and shareholders.

Proactive Planning That Goes Beyond the Tax Return

At P10 Accountancy, our approach to year end planning goes well beyond simply preparing figures after the fact. We work with business owners in advance — reviewing management accounts, forecasting the year end position, and identifying genuine planning opportunities while there is still time to act on them.

In this case, we were engaged by a four-director owner-managed business ahead of its March 2026 year end. The company had traded strongly, accumulated healthy cash reserves, and faced a projected corporation tax liability of £80,000. All four directors held Self-Invested Personal Pensions, creating the conditions for a planning exercise that could deliver both immediate tax relief and long-term strategic benefit.

Following a full review of available pension allowances — including brought-forward relief from prior years — we structured an employer pension contribution strategy that reduced taxable profits from £320,000 to £80,000, cutting the corporation tax bill from £80,000 to £16,000 and delivering a total saving of £64,000.

Delivering Excellence for Our Clients

Our recommended strategy for this case delivered the following:

Corporation Tax Saved: £64,000
Taxable Profit Reduced From: £320,000 to £80,000
Tax Liability Reduced From: £80,000 to £16,000
Directors Benefiting: 4
Pension Vehicle: Self-Invested Personal Pensions (SIPPs)
Long-Term Strategy: SIPP acquisition of commercial premises for company leaseback

Planning Ahead for a More Tax-Efficient Year End

Are you an owner-managed business looking to reduce your corporation tax liability before your financial year closes? Our accountancy team works with directors and shareholders to identify legitimate planning opportunities — combining tax efficiency with long-term commercial strategy. Get in touch to discuss your position before your year end arrives.