As 2025 heads towards its final quarter, now is the perfect time for UK companies to think about corporation tax planning. Smart planning before your year-end can reduce your tax bill, improve cash flow, and keep more money in your business for growth.

Here are some key strategies to consider before the year closes 👇

Since 2023, companies have been able to claim 100% relief on qualifying plant and machinery under the Full Expensing scheme. This means that if you’re planning big investments — like IT equipment, machinery, or office upgrades — doing so before year-end could significantly reduce your taxable profits.

💡 Tip: Not everything qualifies (cars, for example), so get advice before making a purchase.

The balance between salary and dividends can make a big difference to overall tax efficiency. With frozen income tax thresholds and ongoing dividend tax changes, directors should review their mix of remuneration before 31 March or their company year-end.

If your company invests in innovation, new processes, or product development, you could benefit from R&D relief. The rules have tightened recently, but the savings are still valuable — sometimes worth thousands.

If your company has made a loss in 2025, don’t ignore it. Losses can often be carried back to reclaim tax from previous years or carried forward to offset future profits.

Employer pension contributions for directors and staff are usually deductible for corporation tax. Making contributions before year-end can reduce taxable profits while investing in the future.

If your company has made a loss in 2025, don’t ignore it. Losses can often be carried back to reclaim tax from previous years or carried forward to offset future profits.

Employer pension contributions for directors and staff are usually deductible for corporation tax. Making contributions before year-end can reduce taxable profits while investing in the future.

If you can legitimately defer income or bring forward expenses into this year, you may reduce your immediate tax liability. Just make sure it’s commercially justifiable and in line with HMRC rules.

Corporation tax planning isn’t about avoiding tax — it’s about being smart and efficient with your business decisions. A little planning before year-end can save you money, improve cash flow, and give you peace of mind.

👉 At Llewellyns, we work with businesses across South Wales to make sure they never pay more tax than they should. If you’d like to review your year-end position, get in touch today — it could make a big difference.