If you run a limited company and you’re busy growing it (which we know you are), tax planning can easily slip down the list.
But here’s the thing…
Allowances reset on 05 April 2026. If you don’t use them, you lose them. No rollover. No second chances.
So let’s make sure you’re not giving HMRC more than you need to.
As you know, we’re always looking to mitigate your tax liabilities as best we can and this is one of the easiest ways to do it.
1. Pension Contributions – Are You Using the Most Tax-Efficient Pot Available?
Making pension contributions is still one of the most tax-efficient ways to extract profits from your company.
If your company pays into your pension:
- The contribution is usually allowable for Corporation Tax
- There’s no Income Tax or National Insurance to pay personally
- The funds grow tax-free
Subject to limits, the effective cost of putting £1 into your pension can be significantly lower once tax relief is factored in.
The question is:
Are you taking dividends and paying tax unnecessarily when you could be topping up your pension instead?
For owner-managed businesses turning over £500k–£5m, this is often a missed opportunity.
2. Dividend Allowance – Small, But Still Worth Using
For 2025/26, you can take £500 of dividends tax-free using your dividend allowance.
Now, £500 doesn’t sound life-changing.
But tax planning is rarely about one big move. It’s about stacking multiple smart decisions together.
Have you:
- Used your full personal allowance?
- Taken dividends in the most efficient salary/dividend split?
- Checked whether your spouse could receive dividends instead?
There are very few reasons not to extract profits using a small salary (up to the National Insurance threshold) and the balance as dividends — but the exact split matters.
And getting it wrong can mean paying 8.75%, 33.75% or more when you didn’t need to.
3. Capital Gains Tax Allowance – Use It or Lose It
The Capital Gains Tax allowance for 2025/26 is £3,000.
If you have:
- Investment portfolios
- Shares
- Property (not your main home)
You can realise gains up to this limit tax-free.
Many business owners sit on investments that have grown nicely… and do nothing.
Could you:
- Sell part of a holding now?
- Reset the base cost?
- Transfer assets between spouses first?
Care is needed — especially with anti-avoidance rules — but done properly, this can save serious tax over time.
Most people waste their Capital Gains Tax allowance every year. Don’t be one of them.
4. Spouse Planning – Are You Using Both Personal Allowances?
At the very least, neither spouse should waste their £12,570 personal allowance in 2025/26.
If your spouse is a shareholder (or could be), there may be scope to:
- Pay dividends at lower tax rates
- Shift investment income
- Balance overall household tax exposure
But be careful. If income is derived from your company and you’re the one doing the work, there are rules around diverting income.
This is where tailored advice matters.
The Bigger Question
When was the last time you reviewed all four of these together?
Pensions. Dividends. Capital Gains Tax. Spouse planning.
Individually they’re useful. Combined, they’re powerful.
If you’re ambitious, growth-focused and building something meaningful (which most of our clients are), then tax planning shouldn’t be reactive in March. It should be proactive now.
Don’t Leave It Until April 2026
We’d much rather have this conversation in March than in a last-minute panic.
If you want to check you’re not wasting allowances before 05 April 2026, let’s talk. Give us a call us on 01733 371180 or send us an email – advice@greenstones.co.uk.
Book a review meeting with your Lead Adviser today and we’ll make sure your money is working as hard as you are.