Happy New (Tax) Year - the things you should be doing

It’s Tax Year End - Are You Ready?

Soooooo, I meant to do a series of shorter articles on this… But life and business happened (as it does), and the article series didn’t happen.

So instead — here’s everything in one bigger article! All in one place, and now you can work through it at your own pace (Spoiler - there's a free checklist to help too).

Let’s start here…

How was your January?

Did you get your 2024/25 tax return in by 31 January?

Did you enjoy doing it? (Don’t worry, be honest, I know not everyone enjoys numbers the same way as I do!)

Thinking back to January is making me sweat (although it could be a peri-menopause thing haha) because, according to HMRC, 475,722 taxpayers waited until the final day to file. The final day.

And then 27,456 of those left it until the final hour! (No-one should be doing their taxes after 11pm on a Friday night, not even me)

But honestly — I get it.

Deadlines create action. Especially for things we don’t enjoy.

But when it comes to your finances… leaving it until the last minute doesn’t just create pressure — it creates panic. It uses up way more mental energy than needed too.

For a lot of small business owners, it’s not just about “not liking it”.

It’s deeper than that.

It’s not just procrastination — it’s fear

From working with so many small business owners, I’ve realised something important:

You’re not putting this off because you hate numbers. You're certainly not putting it off because you’re lazy.

You’re most likely putting it off because:

• you don’t know where to start (it's piled up and now there is a lot)

• you’re not sure if you’re doing it right (absolutely don't want to get tax wrong)

• you’re worried you’ve missed something

So you avoid it… Until the deadline makes it impossible to ignore.

And then it becomes stressful, rushed, and overwhelming.

What I actually want for you instead

I want you to feel able to complete your tax return in July.

Not because you have to — but because you can.

Imagine - you click submit, and then disappear into the summer sunset with your drink of choice to enjoy the warm breeze, time with friends or family, and to just relax, because it's done, you know exactly what will need to be paid and when, and you can get on with the summer holidays.

How? Well when you understand your numbers and your records are organised, nothing feels hidden or uncertain and you don't have to waste precious mental energy trying to simultaneously remember to do it and forget about it because you don't want to do it.

That’s the shift.

I want to take you on a journey from avoidance → panic → mild relief → avoidance...

To awareness → confidence → control

And this article is here to help you do exactly that.

What we’re actually going to do

We are not trying to submit your tax return today. I mean, even I don't do mine in April.

We’re doing something much more useful.

We’re going to:

• understand what happened this year

• tidy everything up properly

• start the new year clean and structured

Think of it as:

Review → Reset → Relaunch

That’s it.

Quick note: When is the tax year end?

Officially, the tax year runs from the 6th April to the 5th April.

But here’s a simple, practical tip:

HMRC allows you to treat 1 April → 31 March as equivalent for tax year purposes.

So for most small businesses, it’s so much easier to:

• treat 31 March as your year end

• start fresh on 1 April

(If you're moving towards Making Tax Digital, aligning to calendar months can also help — but that depends on your setup and may need professional review. Message me if you need help)

PART 1: REVIEW

Understanding what actually happened

When you review your financial year, you’re not just “looking at the numbers”.

You’re understanding the story of your business.

Where money came from. Where it went. What worked. What didn’t.

But the real value isn’t just in looking back.

It’s in also asking:

What should happen next?

Start simple: The shape of the year

You don’t need full accounts to begin.

Start with three numbers:

1️⃣ Total income

How much came into the business this year?

Was it what you expected?

2️⃣ Main expense categories

Where did most of the money go?

• software / subscriptions

• suppliers

• marketing

• subcontractors / freelancers

  
  

3️⃣ Visible profit

Is there money left after expenses?

Or does something need adjusting?

Turn that into insight

Once you can see the shape of the year, ask:

• What helped the business grow?

• What created unnecessary stress?

• What would make this feel more stable next year?

The answers are often simpler than you expect.

You don’t need massive overhauls.

Just:

• clearer pricing

• better expense tracking

• regular check-ins

Small adjustments, but powerful ones.

A question for the new year

As one financial year closes and another begins, ask yourself:

What would make this business feel more solid this time next year?

Not bigger. Not busier.

More solid.

PART 2: RESET

Close the year properly (without the chaos)

This is where we tidy things up.

If the information is messy, everything that follows becomes harder.

It doesn't have to be perfect. But we can make things clearer.

You know how when a friend messages to say 'I'll be there in 10' and you realise you're still sitting in your towel staring at the wall, and you get dressed and manage to run around your place and tidy up to make things look better and run bits up the stairs and light a candle and then sit ready for them with 30 seconds to spare? It wouldn't pass the Kim and Aggie 'How Clean Is Your House?' tests, but suddenly things seem much better?

It's that, but for your finances.

Step 1: Clean the money trail

Start with how money moved.

Identify what’s missing

Most transactions will be in your business bank account.

But think about:

• cash payments

• personal card use

• “that one thing on Amazon”

Make a quick list.

Once you start, more will come to mind.

Identify mixed transactions

Look through recent months and mark anything unclear:

• personal expenses in the business account

• business expenses paid personally

• transfers you don’t recognise

You don’t need to solve everything immediately - for now we just identify it.

Step 2: Gather your records

Now we deal with the other common problem:

Everything is everywhere.

You've got

• receipts in emails

• invoices in folders

• photos on your phone

• something in a spreadsheet

And suddenly… answering a simple question becomes a treasure hunt.

Financial records should not rely on memory

You shouldn’t be asking “Where did I save that?”

Everything should have a place.

For the year that’s gone, go and collect everything.

Check

• your wallet

• your desk

• that drawer in the kitchen

• that drawer in the other room

• your emails

Get it all in one place.

When it's all in one place it’s then ready to be used. Whether you’re doing your own return, or someone else is doing it for you, now you know you have your records together.

Then we can move forward.

PART 3: RELAUNCH

Start the new year differently

Here’s the important bit:

A lot of year-end stress doesn’t start in March.

It starts much earlier.

When:

• transactions get mixed

• receipts disappear

• the money trail becomes unclear

You know money is coming in.

But when you try to answer simple questions… everything feels, well, harder than it should.

Step 1: Create a clear money system

Before thinking about tax.

Before analysing numbers.

You need one thing:

A clean, visible money trail

Someone else should be able to follow your business finances without asking you ten questions.

Start here:

✔ Use a dedicated business bank account (free options available)

✔ Keep business income and expenses separate

✔ Create one simple rule: Business money stays in the business account

It doesn’t need to be perfect.

But it should be consistent.

Map your money

List:

• how money comes in (bank transfer, Stripe, PayPal, cash…)

• how money goes out (card, direct debit, fees, transfers…)

This helps you see:

• what exists

• what might be missing

  
  

Step 2: Create a simple record system

You do not need complicated software to start.

Simple works.

Create a basic folder structure

Start with:

Business Finances 2026–27

Inside that set up 5 folders:

• Income

• Expenses

• Bank Statements

• Tax

• Queries

  
  

Capture receipts immediately

When you receive something:

• save it

• screenshot it

• forward it

Put it in the right place straight away.

No piles. No “I’ll do it later”. If you really get stuck put it in queries - that then becomes your task list to go through with your trusted finance professional.

Add a 10-minute weekly habit

Once a week:

• download receipts

• save invoices

• check transactions

That’s it.

Ten minutes is usually enough.

Simple storage tip

If storage feels messy or you're worried about space:

Set up a dedicated email like: yourbusiness-invoices-123@... Gmail or Outlook

Forward everything there.

Then, you can also use the free storage in Gdrive with Gmail or Onedrive with Outlook to keep pictures of your invoices / receipts you get paper copies of.

Use it as your central hub. Everything in one place is much easier to sort when needed.

Why this matters more than you think

When your records are organised, you can quickly see:

• what came in

• what went out

• what you have evidence for

And that creates something really important:

Confidence

Because clarity creates calm.

If you do nothing else, do this:

✔ Separate business and personal spending

✔ Identify anything unclear or missing

✔ Gather your records into one place

✔ Set up a simple folder system

✔ Start a weekly 10-minute finance routine

That alone will change how this feels next year.

Final thought

This isn’t about being perfect.

It’s about being clear enough.

You just need a system that works for you.

Want a simple way to work through this?

I’ve created a Tax Year-End Review & Reset Checklist to guide you through everything step by step.

You can download it free from the DaM Good Business Club Hub - you get free access by joining my newsletter here.

(Already a member? Sign in here with the password)

This is about creating a calmer, clearer way to run your business finances.

Not just at year end — but all year round.

And that’s where real confidence comes from.

Need help? Get in touch. Find me on LinkedIn or email me hello@damgoodbusiness.com