Mid-Year Financial Health Check: Are You On Track for 2025–26?
As we reach the halfway point in the 2025–26 tax year, now is the perfect time to take a step back and check in on your financial health. Whether you’re a sole trader, company director, or small business owner, a mid-year review can help you stay in control, plan ahead, and avoid nasty surprises down the line.
At Llewellyns Chartered Certified Accountants, we encourage all our clients to treat July as a time for reflection, review, and re-forecasting. Here’s how to do it:
🔎 1. Review Your Year-to-Date Performance
Start by comparing your actual income and expenses for April–June 2025 with your original budget or forecast.
Ask yourself:
- Are you meeting revenue targets?
- Are any costs running higher than expected?
- Is your cash flow stable?
This gives you a realistic picture of how the rest of the year might unfold and highlights areas to tighten or expand.
📊 2. Revisit Your Cash Flow Forecast
Cash is the lifeblood of your business — so understanding your incomings and outgoings is crucial. Update your cash flow forecast based on current trends, upcoming commitments (like the 31 July tax payment on account), and any seasonal changes.
A forecast helps you:
- Anticipate shortfalls
- Plan for investment
- Avoid late payment penalties
💡 3. Check Your Tax Position
Now’s the time to estimate your 2025–26 tax bill based on your profits so far.
✅ If profits are down, you may be eligible to reduce your July tax payment on account.
📈 If profits are up, you can begin setting aside funds early to avoid a surprise balancing payment in January 2027.
Also review:
- VAT obligations (if applicable)
- Payroll & National Insurance
- Corporation tax for companies
Need help estimating or reducing your tax payments? We can take care of that for you.
🧾 4. Tidy Up Your Bookkeeping
Mid-year is the ideal time to ensure your records are up to date, including:
- Bank reconciliations
- Categorised expenses
- VAT submissions
- Invoice follow-ups
Accurate books not only make your accountant happy — they also give you reliable insights and reduce stress at year-end.
📌 5. Set (or Re-set) Goals for the Rest of the Year
Business is unpredictable — but that’s no reason to fly blind. Use this moment to set smart goals for the remainder of the tax year.
Examples:
- Hire a part-time staff member
- Launch a new product or service
- Reduce aged debt by 30%
- Save 10% of profits for tax
Link these goals to measurable KPIs, and make sure your financial systems support them.
🎯 Let’s Help You Stay On Track
A quick mid-year financial check-in can make the rest of your year smoother, more profitable, and better prepared for January’s deadlines.
Whether you want to reduce your tax bill, manage cash flow, or scale smartly — we’re here to help.
📞 Contact us today to book your mid-year review with Llewellyns.