12 tax tips of Christmas: A festive countdown for OMBs
’Tis the season for sparkle, strategy… and smart tax planning. As the year draws to a close, owner-managed businesses have a brilliant opportunity to tidy up their finances, optimise tax positions, and head into January feeling confident rather than rushed.
To keep things light (and useful), we’ve wrapped up our top year-end advice into the 12 Tax Tips of Christmas, a festive countdown designed to help you make informed decisions before the year closes.
1. Review directors’ salaries and dividends
Whenever your year end falls, check whether your salary/dividend mix is still tax efficient. A quick review can avoid unnecessary tax and optimise personal allowances.
2. Use your annual investment allowance
If you’re planning to invest in equipment or machinery, doing it before year-end could bring forward valuable tax relief.
3. Don’t forget trivial benefits
Gift cards, festive treats or small staff gifts under £50 can often be tax-free if they meet HMRC’s criteria, perfect for Christmas cheer without the tax bill.
4. Maximise pension contributions
A top-up before year end can reduce your corporation tax while meaningfully supporting long-term personal wealth planning.
5. Bring forward certain expenses
Some business expenses can be incurred this year, improving your taxable position just in time for the holiday season. For example, if you need to incur repair or redecoration costs, but you can choose the timing of this.
6. Make the most of R&D relief
If you’ve innovated, developed new products or otherwise incurred costs that meet the Research and Development relief criteria in 2025, don’t miss out. This is one relief too many OMBs overlook.
7. Review your cash flow forecast
January’s self-assessment payments for individuals can catch people off-guard. If, as an OMB, you are planning dividend or bonus payments, a festive cash flow forecast now can minimise the New Year stress.
8. Gifts to clients
Gifts to clients will ordinarily not be allowable as a tax deduction. However, if there is a conspicuous advertisement for your business, the cost (in conjunction with any other gifts to them) does not exceed £50 and the gift is not food, drink, tobacco or a voucher exchangeable for goods, then the cost will generally be allowable.
9. Claim allowable home working costs
If you or your employees work from home, even partially, ensure you’re claiming the appropriate amounts.
10. Use the employment allowance
If eligible, this reduces your National Insurance bill and can provide a helpful boost during the year-end crunch.
11. Consider Staff Bonuses
If performance bonuses are due, timing the payment could affect tax relief and staff morale, both great reasons to review now.
12. Charitable Donations
If you want to give yourself a warm fuzzy feeling, where your limited company gives money, equipment or trading stock, shares in another company, employee time on secondment or sponsorship payments, this will usually be deductible from your total business profits before tax.
A Final Note from Us
The festive period is the ideal moment to reflect, regroup, and get ahead on tax planning. If you’d like tailored guidance or support with year-end strategy, the Moore South team is here to help you start 2026 with clarity and confidence.