Four Accounting Tips For Peace Of Mind Over Christmas

The Christmas run-in can be hectic for already-busy business owners, especially when it comes to finances. While you might have the other essentials locked down on your to-do list, it can be tricky to find the time to stay on top of your accounts. However, a proactive approach now will not only give you peace of mind over the festive period, but also give you the freedom to hit the ground running when you return in January.

From end-of-year tips to quick tax wins, here’s a handful of pointers that could make your finances more agile and your business in better shape going into 2026.

1.  Know the Christmas dates for clients and suppliers

Make sure you’ve planned ahead for your payroll provider’s end-date and prepared for a potentially earlier payday for your team. The same goes for building your inventory or placing orders – supplier cut-off dates may be earlier in December which can affect your cash flow.

What’s more, workflows can be volatile in the run-up to Christmas as clients race to meet their own pre-holiday deadlines. High demand can often be followed by extremely low demand. If you have employees on a daily rate, plan ahead on staffing levels so you’re not overspending on resources.

2.  Prepare for the financial year-end

If your financial year ends in December, you don’t need us to tell you to get your accounts in order. But have you considered everything that might be tax deductible? Think new devices or investments to save extra money. Or if you need to reduce your tax bill further, consider increasing your pension contribution.

If you’re April to April, then don’t forget your Corporation Tax deadline is 1st January. This could affect your cash flow if you haven’t put funds aside yet, so it’s better not to leave this until the last minute.

3.  Get ready for your Self Assessment tax return

Another one for those whose financial year ends in April. Your Self Assessment tax return is due on 31st January but don’t leave it until after Christmas if you can help it. Sure, you have a month to blast through it when you return in January, but you can do better than that for your business…

Getting ahead on this in December not only allows you to focus on other business imperatives from the get-go in the new year, but it also prevents the potential mistakes and penalties that can come from rushing it. You also want enough time to make sure you’ve claimed everything you’re entitled to! 

4.  Deduct tax from Christmas activities

Tax-efficiency can be applied to the fun stuff too. If you’re buying gifts for clients, they could be tax deductible if they’re considered ‘advertising’ by nature – for example, promotional gifts or branded items. For your employees, small and non-cash gifts under £50 can often be given tax-free under HMRC’s ‘trivial benefits’ rules.

Staff Christmas parties are also tax deductible under certain conditions laid out by HMRC. It depends on a number of factors including price-per-head and how the party is categorised (i.e. whether it is an ‘all-staff’ event). When conditions are met, costs are generally allowable expenses for Corporation Tax and potentially on VAT for the staff-entertaining portion.

Hit the ground running in 2026 with Nabarro Poole

Although it can be game-changing for you and your business, making the right tax choices and planning ahead with your finances isn’t always easy. That’s where it pays to have an accountant by your side who knows your business well – and knows what it takes to help you stay lean, ahead of the game, and growth-ready for 2026.

As an owner-managed accountancy firm, we are acutely aware of the challenges you face and the opportunities you could be capitalising on. Get in touch for a friendly chat about your needs.