Tax bills don’t have to feel like a nasty surprise. If you’ve ever had a moment of panic wondering “Have I saved enough?” you’re not alone. At striveX®, we help business owners take the guesswork out of their obligations so you can feel confident, cash-flow ready, and clear on exactly how to plan and save for tax.
Whether you’re running a limited company or flying solo as a sole trader, learning how to plan for tax is one of the smartest moves you can make. It helps you stay compliant, reduce financial stress, and take back control of your money.
Why is it important to plan ahead?
Every year, we speak to business owners caught off guard by a tax bill they weren’t prepared for. It’s not just about the number on the page, it’s the anxiety of not knowing what’s coming or how you’ll pay it.
By saving regularly throughout the year, you can avoid that end of year panic. When you know exactly what to expect, and you’ve already set aside the money, tax becomes just another task, not a source of stress.
Understanding Corporation Tax
Corporation Tax is charged on your limited company’s profits (that’s income minus allowable expenses).
How much should you save?
The current main rate of Corporation Tax is 25% for companies with profits over £250,000, and 19% for those under £50,000. If your company’s profits sit between those two figures, you’ll pay a tapered rate. For most small limited companies, setting aside 19%–25% of your monthly profit is a great place to start.
The best way to stay on top of this is with cloud-based accounting software like Xero or QuickBooks. These platforms let you track your real-time profit so you can calculate your expected Corporation Tax bill as you go.
Work with Strivex today
At striveX®, we specialise in helping UK limited companies manage their finances with confidence. Whether you need advice on Tax planning or support with company accounts, our experienced team is here to assist
Don’t forget: Director responsibilities
As a director, it’s also important to factor in your own tax responsibilities. If you pay yourself via a combination of salary and dividends, there will be personal tax to consider too.
Self-Assessment:
If you’re a director of a limited company, you’ll usually need to file a Self-Assessment tax return each year. This is where you report all your personal income — including any salary and dividends you’ve received from the company.Dividends are taxed separately from salary and at different rates, depending on your total income for the year. To avoid any surprises when your tax bill arrives, it’s sensible to set aside a portion of your dividend income in advance to cover this liability.
Working with an accountant to forecast both company and personal liabilities together ensures nothing is overlooked — and keeps you from dipping into company cash to pay a personal tax bill.
Top Tips for Planning Ahead
Here’s how to take the stress out of tax with proactive planning strategies tailored for limited company owners:
- Review income monthly: Don’t wait for year end. Set time aside every month to review your profit and update your forecast for the year.
- Separate your savings: Open a separate bank account (or use banking apps with ‘pots’ or ‘spaces’) to ring-fence your tax savings. That way, you’re not tempted to spend it.
- Plan for payments on account: If you’re self-employed, speak to your accountant about whether this applies to you — and how to avoid being caught short.
Prepare your tax return early: The earlier you submit, the sooner you’ll know exactly what’s due. It also gives you time to spread the cost if needed.
Ready to Take Control of Your Business Finances?
If you’ve found this guide helpful, imagine having a full roadmap to master your business finances — anytime, anywhere, at your own pace. That’s exactly what you get with StriveX financial education university, designed specifically for limited company owners like you.
Final thoughts...
Tax planning doesn’t need to feel overwhelming. With a solid strategy, the right tools, and proactive habits, you can completely transform the way you approach tax as a limited company owner.
At striveX®, we don’t just help our clients stay compliant — we help them feel in control. If you’re ready to make tax planning part of your monthly rhythm (not a once-a-year scramble), we’d love to help.
