As we head into December, many small business owners understandably have one foot on the mince-pie tray and the other stepping into the New Year. But before the festive cheer takes full hold, there’s no better time than now — in the quieter days between Christmas and New Year — to plan ahead.

With recent changes from the Autumn Budget 2025, and the uncertainty of 2026 ahead, getting organised now could pay off big later.

Here are 7 smart moves to give your business the best head start for 2026 👇

December often brings a slowdown — fewer orders, delayed payments, holiday staff leave. Use this quieter period to:

• Review outstanding invoices and chase up late payers.

• Forecast cash flow for Q1 2026 — include expected sales, recurring costs (rent, energy, salaries), tax liabilities.

• Build a cash buffer to cover unexpected bills or delays.

This helps avoid the all-too-common January scramble.

The Autumn Budget 2025 introduced updated rules on capital allowances. From 1 January 2026, there’s a 40% first-year allowance available for qualifying plant and machinery expenditure for many businesses.

If you’ve been considering equipment upgrades — computers, machinery, tools — now may be a smart time to plan them. Claiming the first-year allowance could reduce your taxable profits, improving your cash flow for the year ahead.

The Budget also brought some subtle but important changes to dividend taxation rules for 2026.

If you’re a director or owner:

• Review your planned salary/dividend mix for 2026.

• Reassess drawings in light of potential changes to dividend taxation rates.

• Factor in personal tax thresholds (frozen for a few more years) when planning take-home pay.

Getting this right before April will help you avoid unexpected surprises once the new tax year starts.

Use this downtime to tidy up:

• Ensure all receipts, expenses and invoices are filed properly.

• Reconcile bank statements, credit cards, and loans.

• Identify any missing records or potential tax-deductible expenses before the year-end.

• Fix any bookkeeping issues before the busiest months — it saves time and stress later.

Your future self (and your accountant) will thank you.

2026 may bring change — higher costs, tax changes, shifts in demand.

Use Christmas break to:

• Review your business plan and set realistic 2026 goals.

• Forecast sales, growth, staffing needs.

• Plan for capital expenditures, cashflow, tax liabilities, and investment in growth or marketing.

• Reassess pricing strategy (inflation, costs, market changes).

A refreshed plan now saves panic-mode later.

With every new tax year comes updated rules — whether it’s around capital allowances, dividend taxation, or business rates.

Use this quiet spell to:

• Check what’s changing in 2026 (for example, capital allowances updates).

• Ensure your business structure is still optimal (sole trader, limited company, etc.).

• Confirm that your bookkeeping software is ready, and that you or your accountant are prepared for any new reporting requirements.

Finally — just because it’s Christmas doesn’t mean you can’t get a head-start.

At Llewellyns Chartered Certified Accountants, we’re offering year-end reviews to help clients:

• Optimise salary/dividend mix under 2026 tax rules

• Identify capital allowances and savings opportunities

• Forecast cashflow for the new tax year

• Ensure their business is structured correctly for growth

If you’re ready to build a stronger, leaner business in 2026 — get in touch 📞

Business owners are often too busy chasing day-to-day operations. But the real winners are those who use the quiet moments — like the Christmas break — to plan, prepare, and position themselves for success.

Get ahead now — and give your business a flying start into 2026.