How to Save for Tax All Year Without the Stress
How to Make Tax Time Less Stressful My Tried and Tested Tips
Let’s be honest, for most sole traders and small business owners, tax season can bring a whole lot of stress. The pressure of deadlines, pulling together paperwork, and the fear of unexpected bills can quickly become overwhelming.
At Balanced Books Accounting, we’re all about making tax time feel less like a mad dash and more like a smooth, manageable part of running your business. With a few good habits and some forward planning, you can stay in control of your tax, avoid surprises, and feel more confident about your finances.
Here’s how I help my clients take the stress out of tax season, and how you can too.
1. Understand What You Owe, Before It Sneaks Up on You
One of the best things you can do for your peace of mind is get clear on your tax obligations early on. You’ll need to plan for:
Income Tax
National Insurance Contributions (NICs)
And if you're VAT registered, VAT
👉 The current tax year runs from 6 April 2024 to 5 April 2025
Your Self Assessment tax return for this period is due by 31 January 2026, and that’s also when any tax you owe must be paid.
You may also need to make payments on account (advance tax payments towards the next tax year), with deadlines on:
31 January (first payment)
31 July (second payment)
At Balanced Books, I help clients estimate how much they should be putting aside each month. That way, there are no surprises when the deadline rolls around. The earlier you get your figures to your accountant or bookkeeper, the sooner you’ll know what you owe, and that means more time to plan or save if needed.
2. Set Up a Dedicated Tax Savings Account
This is one of my favourite tips. Create a separate savings account just for tax. Each time money comes in, transfer a percentage of your income into that account.
Many online banks now offer “spaces” or “pots” where you can separate out funds for tax, VAT, or even just a rainy day. I usually recommend putting aside between 20 to 30% of your income, depending on your earnings and setup.
3. Keep on Top of Your Bookkeeping
Staying organised throughout the year is the best way to avoid a last-minute panic. I always suggest keeping your bookkeeping up to date on a monthly basis. It helps you track your income and expenses, monitor profitability, and avoid that end of year scramble.
Using bookkeeping software makes this so much easier, and it also gives you real-time insight into how your business is doing.
4. Review Your Finances Regularly
Every few months, take time to look at your numbers. Are you setting enough aside? Are your expenses creeping up? Has your income changed?
These regular check-ins help you adjust early and stay on track. If something isn’t adding up, you’ll catch it sooner rather than later—and that can save a lot of stress (and money) come January.
5. Automate What You Can
The less you leave to memory, the better. Automate transfers to your tax savings account whenever you get paid. You can also schedule reminders for key tax deadlines, check-ins, or bookkeeping tasks.
Automation keeps things ticking along, even when you're too busy to think about it.
6. Work With a Bookkeeper You Trust
If it all still feels overwhelming, that’s okay, you don’t have to do it all yourself.
At Balanced Books Accounting, we support business owners like you with bookkeeping, tax planning, and day to day organisation. Whether you want monthly support, help understanding your numbers, or just peace of mind at tax time, we’re here to make things easier.
7. Use Tax Time as a Business Check-In
Tax season isn’t just about payments. It’s a great time to reflect on how your business is doing. Are you meeting your goals? Are there areas you could streamline or improve?
When you’ve been saving consistently and reviewing regularly, tax time becomes less stressful and more strategic. It’s a chance to make confident, informed decisions for the future.
Let’s Make Tax Time Less Stressful
The tax deadline might be 31 January, but you don’t have to leave everything until then. With a little planning and the right support, you can turn tax time from stressful to straightforward.
📅 Important Dates to Remember
Tax year, 6 April 2024 to 5 April 2025
Tax return and payment deadline, 31 January 2026
Payments on account deadlines, 31 January and 31 July
If you'd like support getting your finances organised or want help building better habits around tax, I’d love to chat. At Balanced Books Accounting, we’re here to make sure tax season is one less thing to worry about.
📩 Ready to get ahead? Let’s talk.