As 2026 gets underway, many business owners are asking the same question: how can I make this year stronger, steadier and more profitable than the last?
The answer isn’t about doing everything at once. The businesses that will thrive in 2026 are the ones that focus on strong foundations including clear financial visibility, proactive planning and the right advice at the right time.
Here are our top, practical tips to help you get ahead in 2026 and stay there.
Treat Your Accountant as a Strategic Partner
Your accountant should be more than someone who files returns once a year. When you work closely together, they become a valuable strategic partner who can help you make better decisions throughout the year.
A good starting point is to ask for support with:
- Reviewing cash flow patterns
- Identifying new or underused revenue streams
- Highlighting unnecessary or creeping costs
- Prioritising debts and understanding liabilities
One particularly powerful exercise is a 12-month cash flow forecast. This doesn’t need to be complicated, but it should map out:
- Expected monthly sales
- When money is actually received
- Regular outgoings such as wages, rent and stock
- Loan repayments and tax liabilities
If the numbers feel uncomfortable, don’t ignore them. Facing issues early can prevent far bigger problems later, including cash shortages or insolvency. This is just as important for freelancers and sole traders, where income can fluctuate throughout the year.
Make Sure You’re Claiming What You’re Entitled To
One of the simplest ways to improve profitability is to ensure you’re not paying more tax than necessary.
Depending on your business, this may include:
- Claiming all genuine allowable business expenses
- Making use of capital allowances and timing investments carefully
- Checking eligibility for reliefs such as Small Business Rate Relief
- Making charitable donations where appropriate
HMRC rules can be complex, and what’s allowable isn’t always obvious. Speaking to your accountant can quickly clarify what you can and can’t claim, helping you stay compliant while reducing tax where possible.
Use Tax-Efficient Investments Strategically
With tax thresholds remaining tight and Corporation Tax still up to 25% for many companies (HMRC), careful planning matters more than ever.
Tax-efficient options may include:
- Employer pension contributions, which are tax-deductible for companies and grow tax-efficiently
- Investment schemes such as EIS, SEIS and VCTs, which can offer income tax relief and Capital Gains Tax advantages on qualifying investments
- Investing in plant, machinery or technology, which may qualify for full expensing
These areas require professional advice, but when used appropriately, they can significantly improve long-term outcomes.
Pay Attention to Timing and Cash Flow
Timing can make a real difference to tax and cash flow.
Bringing forward essential expenses, delaying non-urgent income, or planning investment dates carefully can help manage taxable profits. Regular cash flow monitoring also ensures you’re prepared for:
- Payments on account
- VAT liabilities
- Quarterly reporting requirements
Staying ahead of these avoids last-minute pressure and unpleasant surprises.
Review Payroll, Benefits and VAT Schemes
Payroll decisions affect both personal and business tax. Reviewing the balance between salary and dividends for directors can improve efficiency while remaining compliant with HMRC rules.
Offering tax-efficient benefits such as electric company cars, cycle-to-work schemes or enhanced pension contributions can also reduce employer National Insurance and support staff retention.
On the VAT side, choosing the right scheme (Flat Rate, Cash Accounting or Standard) and regularly reviewing VAT recovery, can prevent costly mistakes. HMRC continues to identify VAT errors as a common compliance issue for UK businesses.
Reassess Your Market Fit
Many businesses are built on passion and that’s a good thing. But passion alone doesn’t guarantee demand.
If sales aren’t where you expected them to be, or customers aren’t behaving as predicted, it may be time to step back and reassess:
- Who truly needs what you offer?
- Are there customer groups you haven’t reached yet?
- How are customer priorities changing in 2026?
- Can your product or service be repositioned or adapted?
Changing direction doesn’t mean failure. In fact, adaptability is one of the biggest strengths a small business can have, particularly in a market shaped by rising costs and cautious consumers.
Proactive Planning Is the Real Advantage in 2026
The biggest difference between struggling businesses and growing ones is rarely effort, it’s planning.
Monitoring performance throughout the year allows you to:
- Spot issues early
- Take advantage of reliefs and allowances
- Prepare for legislative changes
- Reduce HMRC scrutiny
This is especially important as Making Tax Digital continues to expand and Companies House introduces tighter identity verification and transparency requirements (GOV.UK).
What Makes Growth Different in 2026?
Business growth in 2026 is shaped by a few unavoidable realities:
- Higher compliance expectations from HMRC and Companies House
- Ongoing pressure on cash flow after recent inflationary years
- MTD operations becoming the norm, not the exception
- Smarter tax planning being essential, not optional
The businesses that succeed won’t necessarily be the biggest or loudest, they’ll be the ones with clean records, clear systems and a plan they actually understand.
Our Final Thought
You don’t need to overhaul your entire business to get ahead in 2026. Focus on:
- Knowing your numbers
- Planning proactively
- Getting the right advice early
If you’d like help reviewing your finances, planning for the year ahead or making sure you’re compliant and confident, get in touch with Richard Riley & Associates. We’d love to help you get 2026 off to a great start.