20 October 2026 – written by Steffen Kemmerzehl – Friendly Assist Accountancy – The Accounting Hub
Halloween is a good time for spooky stories, but few business owners want a frightening surprise from HMRC.
A missed deadline, an overlooked tax relief or a bookkeeping problem can turn into an unexpected bill. The good news is that a few simple checks can help you avoid common tax problems and identify opportunities you may otherwise miss.
Here are seven tax tricks to watch out for, along with some potential treats worth checking before the end of the tax year.
1. The VAT threshold that creeps up behind you
You do not have to be a large business to need VAT registration. The compulsory registration threshold is currently £90,000 of taxable turnover, measured over a rolling 12-month period.
That means you should not wait until your financial year ends to check your turnover. You could cross the threshold partway through the year, and the registration rules may require you to act sooner than you expect.
There is also a separate test where you expect your taxable turnover to exceed the threshold in the next 30 days alone.
Your tax treat: Regular turnover reviews give you time to understand whether registration is approaching, how VAT may affect your prices and whether your bookkeeping is giving you reliable figures.
Read our guide to VAT registration and staying compliant.
2. The bookkeeping records that hide a bigger problem
A pile of unreconciled bank transactions might not look frightening at first. But unexplained expenses, missing receipts and transactions posted to the wrong accounts can affect your reported profit and the tax you pay.
For limited companies, personal spending through the company can create another complication. If money taken by a director is not salary, dividends or a properly recorded business expense, it may need to be accounted for through the director’s loan account. Depending on the circumstances, this can have tax consequences for the director or company.
Your tax treat: Keeping records up to date makes it easier to spot errors, claim allowable business expenses and understand how much money is actually available to you.
If your accounts have fallen behind, deal with the backlog before filing figures that have not been properly checked. Correcting errors later can be more time-consuming and expensive.
3. The reliefs you may be overlooking
Tax planning is not just about avoiding penalties. It is also about checking that you have claimed the reliefs you are entitled to.
For example, if you make eligible charitable donations through Gift Aid, you may be entitled to additional tax relief if you pay higher-rate or additional-rate Income Tax. Gift Aid can also affect certain income calculations, including those used for some allowances and income-related charges.
There is a particularly useful rule for some people completing Self Assessment. Under the relevant conditions, Gift Aid donations made in the current tax year before submitting the previous year’s return can be included in that earlier return. This can bring tax relief forward, but the election must be made correctly and cannot simply be added later to an amended return.
Pension contributions can also provide tax relief, subject to the rules on eligible contributions, earnings and annual allowances. The best approach depends on your income, existing pension savings and wider financial position.
Your tax treat: Before submitting your tax return, check that you have included eligible Gift Aid donations and pension contributions, and that any relief you claim is supported by the records.
Do not make a donation or pension contribution purely for tax reasons without considering affordability and the wider financial implications.
4. The rental income split that does not match your expectations
If you own a rental property jointly, the way the property is owned can affect how rental income is taxed.
For married couples and civil partners living together, income from jointly owned property is generally treated as belonging to each person equally for tax purposes, even where the underlying beneficial ownership is unequal. In qualifying circumstances, a valid Form 17 declaration can allow income to be taxed in line with unequal beneficial ownership.
This is not a free choice to allocate income to whichever partner pays less tax. The ownership and entitlement to income must genuinely support the split, and the relevant conditions and time limits must be met.
Your tax treat: If you jointly own a rental property, check that the tax return reflects the actual ownership position and the rules that apply to you. Getting this right may help avoid paying the wrong amount of tax or having to correct earlier returns.
5. The tax bill that could have been easier to manage
The Self Assessment deadline can arrive quickly, particularly when you are busy running a business or managing other commitments.
For the 2025/26 tax year, the normal deadline for paying tax due is 31 January 2027. If you already pay tax through PAYE and your Self Assessment bill is less than £3,000, you may be able to have it collected through your tax code instead.
To use this option, you generally need to submit your online tax return by 30 December 2026, and you must meet HMRC’s other conditions. It is not available to everyone, so check your eligibility before relying on it.
Your tax treat: Preparing your return early gives you more time to check the figures, budget for the bill and explore eligible payment options. If you cannot pay on time, contact HMRC promptly rather than ignoring the problem.
You can also read our guidance on HMRC penalties and late tax returns.
6. The capital loss you forgot to claim
Selling shares or another asset at a loss is disappointing. However, an allowable capital loss may help reduce capital gains that would otherwise be taxable.
If you do not have gains to use the loss against immediately, you may be able to carry it forward. But you generally need to claim the loss within four years of the end of the tax year in which you disposed of the asset.
Your tax treat: Keep records of asset purchases, sale proceeds and associated costs, and check whether losses from previous years have been properly reported. A loss is not automatically useful for tax purposes just because the investment lost value; the relevant disposal and claim rules still apply.
If you have overseas assets, complicated investments or a mix of gains and losses, take advice before submitting the figures.
7. The childcare support that could ease family costs
Not every tax-related treat is for business owners. Tax-Free Childcare may help eligible working families with the cost of approved childcare.
For every £8 paid into an eligible childcare account, the government adds £2, up to £2,000 per child each year, or £4,000 for a disabled child. The support can be used for eligible childcare such as nursery care, before and after-school clubs and holiday activities.
HMRC reported that 601,620 families received Tax-Free Childcare top-ups in June 2026, with £55.7 million added to accounts that month.
Eligibility conditions apply, including rules around work, income and the age of the child. You generally cannot receive Tax-Free Childcare at the same time as Universal Credit or childcare vouchers. Families using the scheme must also reconfirm their details every three months.
Your tax treat: If you pay for childcare while working, check whether Tax-Free Childcare could help. It is worth comparing the available options to establish which support is appropriate for your circumstances.
Find out more on GOV.UK’s Tax-Free Childcare guidance.
Your Halloween tax checklist
Before the year gets away from you, take a few minutes to check:
- Is your rolling 12-month taxable turnover approaching the VAT threshold?
- Are your bookkeeping records complete and reconciled?
- Have you correctly recorded director withdrawals and personal expenses?
- Have you checked relevant Gift Aid, pension and other tax reliefs?
- Does your rental income split reflect the actual ownership and applicable rules?
- Have you planned for your Self Assessment bill and checked the available payment options?
- Have you reported any eligible capital losses within the time limit?
- Could you or your family qualify for Tax-Free Childcare?
You do not need to make every possible tax claim or change your financial arrangements just because a relief exists. The aim is to understand the rules, keep good records and make informed decisions before deadlines pass.
Need help with a tax problem before it becomes a nightmare?
Friendly Assist Accountancy supports sole traders, small limited companies and individuals with annual accounts, tax returns, VAT, bookkeeping issues, HMRC correspondence and UK or overseas income.
Whether you are concerned about a VAT registration date, struggling to bring your records up to date or unsure whether you have reported your income correctly, we can help you understand the issue and identify the next practical step.
Visit our UK tax help page to find out more.
I’m Steffen Kemmerzehl, an AAT Licensed Accountant at Friendly Assist Accountancy. I work with UK and international clients on tax residence, overseas income, pensions, property and other cross-border UK tax matters.
Please get in touch if you’re interested in arranging an appointment.