Tax year end on 5 April: the bookkeeping tasks to finish before it

The UK tax year ends on 5 April, and every year a surprising number of businesses discover on 6 April that they could have saved tax, or avoided stress, by doing a handful of things a few weeks earlier. None of the tasks is difficult. They just have to be done in the year, not after it. This checklist covers the bookkeeping jobs and the common planning points for sole traders, landlords and company directors, so you can work through it comfortably in the weeks before 5 April.

Tax rules and allowances can change, and individual circumstances differ, so treat this as a prompt list and take advice before making decisions with tax consequences.

Why 5 April matters

The tax year runs from 6 April to 5 April. For sole traders and landlords, profit for the tax year determines your Self Assessment bill. Many allowances and reliefs are available only in the year, and unused ones are generally lost. Under Making Tax Digital, the final quarter of the year also ends on 5 April, with its update due by 7 May. See Self Assessment deadlines and key tax dates.

Part one: tidy the records

Reconcile all accounts to the end of March

Reconcile every bank, card and payment account up to the latest statement, and again after 5 April for the final days. See how to reconcile a bank account.

Record all income

Check that every sale, including cash sales, platform payouts and rent, is recorded. Make sure invoices issued up to 5 April are in the books, and consider the position of invoices raised just after. Under the cash basis, income counts when received. See cash basis versus accruals.

Record all expenses and attach receipts

Check that every business cost is recorded and that you have a receipt or invoice for each. Chase missing items now, while suppliers can still provide copies. See how to keep receipts for HMRC.

Finalise mileage and home-working records

Complete your mileage log to 5 April and calculate your claim, and total your hours worked from home. See business mileage claims and working from home expenses.

Count stock and review debtors

If you hold stock and use accruals, count it at 5 April. Review the aged debtors list, chase overdue invoices and write off bad debts. See late-paying customers.

Part two: use your allowances

Annual Investment Allowance

If you need equipment, tools, computers or machinery, buying before the end of your accounting period can bring the relief into this year. The Annual Investment Allowance currently allows up to £1 million of qualifying spending to be deducted in full. Buy because the business needs it, not just for the tax, and keep the invoices. Cars have different rules.

Personal allowance and bands

Make sure your income is arranged sensibly across tax years and, for married couples and civil partners, consider whether each is making use of their personal allowance, within the rules. Our sole trader tax calculator shows the effect of different profit levels.

Trading and property allowances

If you have small amounts of trading or property income, the £1,000 allowances may cover it. Check whether it is better to use the allowance or claim actual expenses.

Dividend allowance

Company directors and shareholders have a dividend allowance, currently £500, and basic-rate band. Consider the timing of dividends relative to 5 April. Our director salary and dividend calculator can help you test the options.

ISAs and savings

ISA allowances are use-it-or-lose-it each tax year. If you have spare cash, consider whether to use the ISA allowance before 5 April.

Capital gains annual exempt amount

If you have sold assets with gains, the annual exempt amount is also use-it-or-lose-it. Property sales have their own 60-day reporting rule, so check the dates.

Part three: pensions

Pension contributions can reduce taxable income and are one of the most effective planning tools, subject to annual allowance limits and your earnings. For a limited company, an employer contribution is a deductible business expense. For a sole trader, personal contributions receive tax relief. Rules are detailed, including carry-forward of unused allowance from earlier years, so take advice from an adviser or accountant before contributing. Record any contributions correctly in your books.

Part four: for company directors

If your company's year-end is not 5 April, the personal tax year still ends then. Directors should:

• Check the director's loan account balance, since personal withdrawals within the tax year can affect planning. See director's loan account explained.
• Decide whether to pay a final dividend or bonus before 5 April.
• Make sure payroll reporting is up to date.
• Review whether any benefits in kind need reporting, with P11D due by 6 July.

See our guide to limited company bookkeeping.

Part five: for landlords

• Collect agent statements to 5 April and reconcile rent received.
• Separate repairs from improvements before the year closes. See bookkeeping for landlords.
• Record mortgage interest, and keep statements showing interest and capital split.
• Check whether you are in Making Tax Digital and prepare the final quarter's update.

Part six: Making Tax Digital and Self Assessment

If you are in Making Tax Digital for Income Tax, the final quarter ends on 5 April, with its update due by 7 May, and you then prepare the end of period statement and final declaration for submission by 31 January. If you are not yet in scope, you will still file a Self Assessment return by 31 January. Get your records ready early. See how quarterly updates work and the Making Tax Digital guide.

Part seven: set money aside

Estimate your tax bill now, and make sure the cash is available. Remember that payments on account on 31 January and 31 July can make the January payment larger than expected. A cash flow forecast helps.

A six-week countdown

When	Do this
Six weeks before	Reconcile everything, chase missing receipts
Four weeks before	Review profit, estimate tax, consider purchases and pension
Two weeks before	Finalise mileage and home-working, count stock
One week before	Make any planned payments and purchases
5 April	Year ends. Note closing balances
After 5 April	Reconcile final days, prepare quarterly update and year-end figures

Common mistakes

• Waiting until January to start
• Missing allowances that expire on 5 April
• Buying equipment you do not need just to save tax
• Forgetting mileage and home-working records
• Not setting money aside for the January bill
• Ignoring Making Tax Digital deadlines

How we can help

Our year-end bookkeeping and Making Tax Digital bookkeeping services get your records ready, and our parent firm Accotax can advise on planning and file your return. Get an instant quote or request a free health check before the year closes.

Frequently asked questions

When does the UK tax year end?

On 5 April. The new tax year starts on 6 April.

Can I still claim expenses after 5 April?

Only if they relate to the tax year and your accounting method. On the cash basis, you claim when you pay them.

What allowances are use-it-or-lose-it?

ISA allowances, the capital gains annual exempt amount and the personal allowance are not carried forward. Pension annual allowance can sometimes be carried forward.

Do I need to do anything on 5 April itself?

Not necessarily, but make any planned purchases, payments and contributions by then.

Can you help me prepare for the tax year end?

Yes. We finalise your records and prepare figures for your accountant. Get an instant quote.