What To Do Immediately After the Tax Year Ends
The tax year ends on 5 April. For many business owners, the focus is on meeting the deadline. However, what you do immediately after the year ends is equally important.
A tidy close simplifies reporting, reduces errors, and prepares you effectively for the new tax year. Here is a straightforward checklist of what to do next.
1. Finalise Your Records to 5 April
Before the new tax year begins, make sure everything up to 5 April is complete.
Verify that:
- All income up to 5 April has been recorded
- All allowable expenses have been entered
- Any late invoices related to the old tax year are correctly included
- Dividend payments are properly documented
This is the time to fix small gaps. It is much easier to address missing items now than months later.
2. Reconcile Your Bank Accounts
Bank reconciliation confirms that your records align with your actual bank position.
Make sure:
- Every transaction up to 5 April has been accounted for.
- There are no unexplained discrepancies.
- Duplicate or missing entries have been corrected.
If your accounts are not reconciled, your figures cannot be fully trusted. Closing the year without reconciliation may cause problems later.
3. Review Outstanding Invoices
Carefully review unpaid sales invoices and supplier bills.
Ask yourself:
- Are there overdue invoices that need pursuing?
- Are there bills from the previous tax year that haven’t yet been recorded?
- Do you need to write off any bad debts? Keeping clear year-end records provides a realistic view of profit and cash flow.
4. Check Payroll Year-End Tasks
If you run payroll, April is a key period.
After 5 April, you should:
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Submit your final Full Payment Submission for the tax year
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Confirm year-end figures are correct
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Issue P60s to employees by 31 May
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Prepare for new tax codes and thresholds for the new year
Missing payroll steps can create compliance issues, so it is important to complete these tasks properly.
5. Archive the Previous Tax Year Properly
Once records are completed and reconciled, organise them systematically.
This involves:
- Saving digital copies of reports
- Clearly labelling folders by tax year
- Backing up data securely
- Storing supporting documents safely
A well-structured archive system makes it easier to respond to queries later and minimises confusion when preparing your next return.
Start the New Tax Year Clean
The days immediately after 5 April present an opportunity. Closing one year properly sets a stronger foundation for the next. Accurate records, reconciled accounts, and organised files reduce stress throughout the year.
They also prepare you for ongoing digital reporting requirements under Making Tax Digital.
How Rosemary Bookkeeping Can Help
If you are unsure whether your year has been closed correctly, support now can help prevent issues later.
Your local Rosemary Bookkeeper can:
- We remove the hassle of organising your financial paperwork
- We handle your VAT return promptly. time
- We can communicate directly with your accountant, saving you time
- We can provide monthly reports and figures to support your decision-making and help your business grow.
