Mid-year tax review - steps to optimise your business finance

Written By Tara Liondaris

Stay in control before year-end sneaks up.

The halfway point in your financial year is the perfect time to stop, look around, and check you're on the right path. A mid-year tax review isn't just about avoiding nasty surprises – it's a smart way to reduce your tax bill, improve your cashflow, and make confident decisions for the months ahead.

When you're busy running a business, it's easy to focus on day-to-day work and push tax planning to the side. But taking time now to review your position puts you back in control – not just of your numbers, but your strategy too.

In this blog, we look at how to make the most of your mid-year review.

1.   Review your year-to-date figures

Start by checking your financial performance so far this year. Look at income, expenses, and profit margins – and compare them to the same period last year. Are your numbers where you expected them to be?

Watch out for:

  • Unusual spikes in income or spending

  • Lower margins than expected

  • Big changes in overheads

This helps you spot early warning signs, avoid over- or under-paying tax, and adjust your plans if needed.

 

2.   Revisit your business structure


The way your business is set up affects how much tax you pay. If your profits have grown or your plans have changed, your structure might need to change too.

Ask yourself:

  • Are you still trading in the most tax-efficient way?

  • Would it save money to switch from sole trader to limited company?

  • Are you taking income through the best mix of salary and dividends?

Now’s the time to check if your setup still works for your goals – and fix it before the year-end rush.

 

3.   Maximise allowances and reliefs


Many businesses miss out on valuable tax reliefs simply because they don’t realise they qualify.

Here are a few to look into:

  • Annual Investment Allowance (AIA) – Have you bought any new equipment, tools or assets? You may be able to claim the full cost.

  • R&D tax relief – If you’ve worked on innovative projects, even if they’ve failed, you could claim thousands back.

  • Capital allowances – Check if you’re claiming everything you're entitled to on business vehicles, machinery, or IT.

These reliefs can make a big difference – but only if you act before the year ends.

 

4.  Check your payroll and benefits


Payroll can be a minefield - and mistakes can be costly. Use your mid-year review to make sure:

  • Your payroll is up to date and running smoothly

  • Staff salaries and director pay are set at the right levels

  • Any benefits in kind (like company cars or private healthcare) are recorded properly

You’ll reduce risk, avoid underpayments, and make sure you stay on the right side of HMRC.

 

5.   Tidy up your bookkeeping


Accurate records make everything else easier – from budgeting to VAT returns. Mid-year is a great time to clean things up.

Focus on:

  • Recording all business expenses properly

  • Reconciling your bank accounts

  • Fixing any gaps, errors or duplicates

Good records mean fewer headaches later – especially when it's time to file your tax return.

 

6.   Plan ahead for cashflow and tax payments


Once you know how the year’s shaping up, you can forecast your tax bill and avoid scrambling for cash later.

Make sure you:

  • Estimate your Corporation Tax or Self Assessment bill

  • Set aside funds gradually

  • Check your payment on account deadlines

Good planning takes the stress out of tax and helps you manage your cash more smoothly.

 

7.   Speak to your accountant


Yes, we would say this – but a mid-year chat with your accountant really can save you time and money. We’ll:

  • Spot tax-saving opportunities you might miss

  • Help you set goals for the next 6 months

  • Make sure you’re not overpaying (or under-prepared)

We’ll also help you stay compliant, plan for growth, and make smart financial decisions with full confidence in your numbers.

 

Final thoughts – don’t wait until the year-end rush


A mid-year tax review gives you breathing room. It means you can fix problems early, take advantage of tax-saving strategies, and make the rest of your year more profitable.

Instead of rushing to meet deadlines at the last minute, you’ll feel more in control – and more prepared for what’s ahead.

Need help reviewing your finances?
Let’s get your mid-year review sorted.
Contact us today – we’ll help you find savings, reduce stress, and keep your business moving in the right direction.

Tara Liondaris
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