It’s a new tax year, here’s what smart business owners are doing in May

April is for headlines.
May is for action.

Now the new tax year has started, the most switched on business owners are already making decisions that will shape how profitable and tax efficient the next twelve months will be.

Here is what they are doing right now.

Reviewing Salary and Dividends

The set it and forget it approach does not work anymore. Tax thresholds, corporation tax rates and National Insurance rules change, and your remuneration strategy should change with them.

Directors should be reviewing:

• Optimum salary levels
• Dividend planning across the year
• Spouse involvement where appropriate
• Pension contributions as part of profit extraction

Small adjustments now can save thousands over the course of a full year.

Setting Profit Targets, Not Just Turnover Targets

Revenue is exciting. Profit is what actually matters.

Smart businesses are:

• Reviewing last year’s margins
  Adjusting pricing where needed
• Identifying underperforming services
  Forecasting corporation tax early

If you do not already know what your projected tax bill looks like, May is the time to get clarity.

Cleaning up Director Loan Accounts

Director loan accounts are often left to drift, which creates unnecessary risk.

Clearing balances, structuring drawings properly and planning distributions helps avoid:

• Unexpected tax charges
• Cash flow pressure
• Compliance issues later

May is planning month. The businesses that feel calm next January are the ones that made structured decisions now.