The Year-End Tax Checklist for Architects, Engineers and Property Professionals

Before anything else, make sure your business structure is working for you — not against you. This is where most tax inefficiency starts.

• Review your salary and dividend split All Limited Co.

  If you operate through a limited company, make sure your salary and dividend split is optimised for the current tax year. The optimal salary to take is usually around the National Insurance secondary threshold — your accountant should be reviewing this annually.

• Check whether you're still in the right structure All

  Sole trader? Partnership? Limited company? As your earnings grow, your optimal structure changes. If turnover has increased significantly this year, ask your accountant whether incorporation would save you money.

• Declare all income sources All

  Rental income, freelance fees, consulting retainers, interest on savings, dividends from investments. Everything needs to be included in your Self Assessment. Missing income — even accidentally — can trigger HMRC penalties.

• Check IR35 status for each contract Engineers Architects

  If you provide services through your limited company to end clients, each contract needs an IR35 assessment. Getting this wrong is one of the most common — and costly — mistakes consultants make. Don't assume last year's status applies this year.

• Review partnership profit allocation Architects Engineers

  If your practice operates as a partnership or LLP, make sure the profit allocation in your partnership agreement still reflects the current contribution of each partner. Misaligned allocations can create unnecessary tax bills.

Most allowances reset on 5 April and cannot be carried forward. These are the ones most commonly missed.

• Use your Personal Allowance fully All

  The Personal Allowance is £12,570 for 2024/25. If you or your spouse earns below this threshold, consider restructuring income — such as employing a spouse or paying dividends — to make use of the allowance before year-end.

• Use your ISA allowance All

  You can contribute up to £20,000 per person into an ISA tax-free each year. This resets on 5 April. If you have savings or investments outside of an ISA, it's worth moving them in before the deadline to shelter future growth and income from tax.

• Maximise your pension contributions All

  Pension contributions attract tax relief at your marginal rate — making them one of the most powerful tax planning tools available. The annual allowance is up to £60,000 for 2024/25. If you haven't used your allowance for the last three years, you may be able to carry it forward.

• Review NHS pension contributions and annual allowance Medical

  The NHS pension is generous but complex. The annual allowance tax charge catches many higher-earning doctors off guard. Check your pension input statements early and consider a scheme pays election if you've breached the allowance.

• Use your Capital Gains Tax annual exempt amount All

  The CGT annual exempt amount is £3,000 for 2024/25. If you have investments sitting on a gain, consider crystallising gains up to this amount before year-end. This cannot be carried forward.

• Gift Aid and charitable donations All

  If you're a higher or additional rate taxpayer, you can claim the difference between basic and higher rate tax on Gift Aid donations through your Self Assessment. Keep records of all qualifying donations made during the year.

These are the allowable expenses most commonly underclaimed in professional services. Make sure everything is recorded and categorised correctly.

• Professional memberships and subscriptions All

  RIBA, ICE, CIBSE, RICS, BMA, GMC — annual fees for professional memberships are fully deductible. Make sure all are on your expenses list, including any CPD courses or professional journals.

• Professional indemnity insurance All

  PI insurance premiums are a fully allowable business expense. If you pay annually, make sure it falls in the right tax year — consider timing your renewal accordingly.

• Home office expenses All

  If you work from home regularly, you can claim a proportion of heating, electricity, broadband and even mortgage interest or rent. Many professionals claim less than they're entitled to here. Keep a record of the space used and hours worked.

• Software, tools and technology All

  AutoCAD, Revit, Tekla, accounting software, project management tools, Microsoft 365 — all deductible. Check whether any annual renewals fall in the current tax year and make sure they're captured.

• Claim R&D Tax Credits Architects Engineers

  If your practice has undertaken any innovative design or engineering work — developing new techniques, solving technical problems, trialling new materials or methods — you may qualify for R&D tax relief. This is significantly underclaimed in the built environment sector. Speak to your accountant about whether a claim is viable.

• Vehicle and travel expenses All

  Site visits, client meetings, travel between office locations. Keep a mileage log and retain receipts. If you use your personal vehicle for business, HMRC's approved mileage rate is 45p per mile for the first 10,000 miles.

• Annual Investment Allowance for equipment All

  Planning to purchase new equipment, computers, drawing tablets or office furniture? Buying before your year-end means you can claim the Annual Investment Allowance in the current tax year rather than waiting. The AIA is currently £1 million.

Property taxation has changed significantly in recent years. Make sure your records and planning are up to date.

• Reconcile all rental income and expenses Property

  Compile total rental income received for the year and all allowable expenses including mortgage interest (subject to the Section 24 restrictions), letting agent fees, maintenance, insurance, ground rent and service charges. Don't leave this until January.

• Check your mortgage interest position under Section 24 Property

  Since April 2020, mortgage interest is no longer deductible as an expense. Instead you receive a 20% basic rate tax credit. Higher rate taxpayers are particularly affected. If you haven't reviewed your portfolio structure since this change, it's overdue.

• Review whether incorporation makes sense Property

  Holding property in a limited company can be more tax-efficient for higher-rate taxpayers, particularly for mortgage interest and retained profits. However, there are significant costs to incorporating an existing portfolio. Get specialist advice before acting.

• Capital Gains Tax planning before a sale Property

  If you're planning to sell a property, the timing matters. Selling before or after 5 April can fall in different tax years, affecting which annual exempt amount applies and your overall tax bill for that year. Consider joint ownership with a spouse to use two annual exempt amounts.

• Claim all allowable property expenses Property

  Commonly missed: advertising for tenants, accountancy fees, replacement of domestic items (under the Replacement of Domestic Items relief), travel to the property for inspections or repairs, and a proportion of phone bills if used for property management.

• Report SDLT and CGT correctly on disposals Property

  CGT on residential property must be reported and paid within 60 days of completion — not at the end of the tax year. Missing this deadline triggers automatic penalties. Make sure any disposals during the year have been reported correctly.

Miss these and you'll be paying penalties as well as tax. Mark them in your calendar now.

A final checklist of housekeeping tasks that are easy to overlook but matter at year-end.

• Reconcile your bank accounts

  Make sure your bookkeeping matches your bank statements for the full year. Unreconciled accounts delay your accountant and increase the risk of errors in your return.

• Collect outstanding invoices

  If you use cash basis accounting, only income actually received counts for the year. Chase any outstanding invoices before 5 April if you want the income to fall in the current tax year — or after if you'd prefer it to fall in the next.

• Review and file expenses receipts

  HMRC requires you to keep records for at least 5 years. If your receipts are sitting in a pile or an email inbox somewhere, now is the time to organise them. Cloud accounting software like Xero or QuickBooks makes this much easier.

• Check your payments on account

  If your income this year is significantly different from last year, you may be able to reduce your payments on account. Overpaying is effectively an interest-free loan to HMRC. Apply to reduce if appropriate.

• Send everything to your accountant early

  The earlier you get your information to your accountant, the more time they have to identify planning opportunities. Leaving it until January means the year is already closed and options are limited.