Five Ways SMEs Can Save Tax in 2025

Updated for 2025. General guidance only — get tailored advice.

1) Use capital allowances wisely

Plan major purchases to maximise Annual Investment Allowance (AIA) and ensure assets are categorised correctly. Keep invoices and serial numbers for HMRC queries.

2) Optimise the timing of income and costs

Close sales and incur deductible costs strategically near year-end to smooth profits. Accurate management accounts help you decide.

3) Leverage reliefs available to you

From creative industry reliefs to R&D style schemes, ensure eligibility is considered and documented. We coordinate with specialist providers where appropriate.

4) Review payroll and dividends mix

For owner-managed businesses, blend salary and dividends tax-efficiently and review pension contributions.

5) Tidy VAT treatment and evidence

Sample invoices each quarter, ensure correct VAT rates (including reverse charge where relevant) and retain digital evidence. If you’re near the threshold, use our VAT threshold tracker.

Want proactive, year-round tax planning? Book a Free Consultation or email us.