Tax planning strategies for UK businesses in 2026

As we move into a new financial year, one thing is certain – the UK tax landscape is continuing to evolve.

Businesses face new reporting requirements, changing allowances, and shifting economic conditions. What worked last year might not be the most efficient approach this year.

In my experience, the businesses that stay ahead aren’t the ones reacting in March or April, they’re the ones planning early.

In this article I’m sharing my recommendations for the top strategies UK businesses should consider this year.

1. Review corporation tax obligations early

Too often, we see businesses leave this until it’s too late to make meaningful changes.

With corporation tax sitting at 25% for profits over £250,000, it’s worth getting ahead of your numbers early. A simple forecast can open up opportunities, whether that’s bringing forward investment, adjusting profit extraction, or making better use of available reliefs.

It doesn’t need to be overly detailed either, even a rough view early on can make a real difference to the decisions you make.

2. Maximise capital allowances

Capital allowances are still one of the most effective ways to reduce your taxable profits, but they are often underused.

If you’re investing in equipment, systems, or even upgrading your infrastructure this year, it’s worth checking what qualifies. I’ve seen plenty of businesses miss out simply because purchases weren’t properly captured or reviewed.

It’s one of those areas where a quick review can often uncover value that would otherwise be lost.

3. Leverage research and development tax credits

There’s still a misconception that R&D relief is only for labs or software firms.

In reality, many UK businesses (of all sizes) are doing qualifying work without realising it – improving processes, developing new products, solving technical challenges.

If that sounds familiar, it’s worth exploring. When approached properly, R&D relief can be a valuable incentive, but it does need to be handled carefully to ensure claims are robust and compliant.

4. Prepare for Making Tax Digital expansion

MTD is no longer something on the horizon, it’s becoming part of day-to-day compliance.

For many businesses, 2026 is the year to properly get systems in place. That means looking at your software, your record-keeping, and how regularly you’re reporting.

For some, this will be a straightforward shift – for others, it might take a bit more adjustment. Either way, it’s worth getting ahead of it now.

5. Strategic timing of expenses and income

Timing can make a real difference to your tax position. Bringing forward certain costs, delaying income (where appropriate), or simply being more deliberate about when transactions happen can all have an impact.

It’s not about overcomplicating things, just being a bit more conscious of timing than many businesses typically are. Verallo advises on the best timing strategies tailored to your business model.

6. Plan for future tax changes

The UK government has signalled further potential shifts.

We’re continuing to see signals around potential shifts in areas like dividends and business taxation. You don’t need to act on speculation but staying informed means you’re not caught off guard.

Even just being aware of what might be coming can help you avoid rushed decisions later.

Why this matters

At Verallo, we work closely with business owners who want more than just compliance – they want clarity and control.

Tax planning isn’t about ticking boxes. It’s about making better decisions throughout the year, with the right information in front of you.

If you’re thinking about how to approach 2026, now’s the right time to start the conversation.

If you’d like to review your position or sense-check your plans, get in touch with our tax experts.