August Check-In: 7 Moves to Lower Your 2026 Tax Bill
We are officially past the halfway mark of the year. August is a strategic time to pause, not to slow down, but to reassess. While tax season may seem far off, the financial decisions you make now will directly affect what you owe (or save) come March 15, 2026.
Too often, business owners scramble at year-end or in the weeks before the deadline to pull everything together but proactive planning gives you more control, more clarity, and often, more cash in your pocket. Here is how to use this August checkpoint to make smarter financial moves.
1. Review Your Year-to-Date Financials
Start by looking at your actual income and expenses so far. Whether you use accounting software like QuickBooks or Zoho Books or track things in spreadsheets, it’s time to pull a profit and loss report for January through July.
Ask yourself:
- Are my revenues aligned with my projections?
- Are any expense categories higher than expected?
- Am I consistently setting aside money for taxes?
This review can help you course-correct before year-end.
2. Estimate Your 2025 Tax Bill
Once you know your year-to-date profit, you can estimate your taxable income. If you are a self-employed individual, sole trader, or company, you will want to understand what portion of your income will be taxed.
Working with a tax professional or bookkeeper now can help you:
- Forecast your total income for the year.
- Estimate your tax liability based on your business structure and deductions.
- Set up or adjust your tax savings plan.
3. Catch Up on Bookkeeping
If your records are behind, now is the time to catch up. Staying on top of your bookkeeping:
- Ensures your financial reports are accurate.
- Helps you make informed decisions.
- Keeps you compliant in case of audit.
Whether you do your books quarterly or annually, waiting until January will only add pressure and possible penalties.
4. Track and Maximize Deductions
Every dollar you spend on legitimate business expenses can help reduce your taxable income. But you need a system to track those expenses properly.
August is a great time to:
- Organize receipts and categorize expenses.
- Review your mileage log or business use of personal assets.
- Ensure you are capturing deductible costs like rent, advertising, subscriptions, meals, and professional services.
Consider investing in tools or services that can help you organize and digitize your records.
5. Plan for Year-End Investments
Are you considering buying new equipment, software, or hiring staff? Making certain purchases or investments before December 31 can create opportunities for tax deductions or capital allowances.
However, not all expenses qualify, so it's best to discuss timing and eligibility with a financial advisor.
6. Explore Tax-Saving Strategies
You might still have time to take advantage of legal strategies that reduce your tax burden. These might include:
- Contributing to an approved pension scheme.
- Declaring dividends (if applicable).
- Writing off bad debts.
- Adjusting salary payments to manage profit.
Each option should be evaluated in light of your specific business and goals.
7. Schedule a Tax Planning Check-In
The smartest move you can make is to consult with your accountant or tax professional before year-end. A short check-in can reveal:
- Potential red flags.
- Missed deductions.
- Opportunities to save or reinvest.
At Premium Consultancy Services Limited, we offer mid-year (and late-year!) reviews to help our clients get ahead not just with taxes, but with strategy. Book a session with us if you would like help planning your next move.
Don’t Wait for the Deadline
The March 15, 2026 tax deadline might seem distant, but what you do in the coming months will determine whether you’re scrambling or smiling when it arrives.
Use August as your action month. Future you will thank you.
Need help getting organized or forecasting your tax bill?
Send us an email at info@pcsjm to get started. Let’s put a plan in place now, so next year’s tax season doesn’t catch you off guard.