Topic hub
Tax Reserves
HMRC is your most patient creditor, and your most expensive.
Tax bills should never be a surprise. They are a predictable percentage of money you have already earned.
This hub covers how much to set aside for Corporation Tax, VAT and Self Assessment, and the habits that make January just another month.
Written by Daniel, peer-reviewed by Sarah
Last reviewed:
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A decision map for this topic
Start with the problem in front of you, then follow the related guide instead of reading the whole library at once.
I need a calendar I can run
Build dates from the actual HMRC account, VAT scheme and accounting period rather than a generic checklist.
Open the guide →I need to understand a current tax obligation
Use the dedicated VAT, Corporation Tax, MTD and Self Assessment guides before acting.
Open the guide →Director payments are unclear
Keep salary, dividends, expenses and director's-loan-account movements separate and escalate unclear balances.
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Grouped guides with a clear purpose
These routes organise the most useful child guides by the decision they help you make; the complete library remains below.
Build tax dates and reserves
Use the calendar and return guides to create preparation, submission and payment controls from current records.
- Small Business Tax Calendar: build a date system you can trustCreate a reliable UK tax reminder system for Self Assessment, VAT, PAYE and Corporation Tax using the dates in your HMRC accounts and accounting period.
- VAT Registration and Returns: the small-business guideLearn when VAT registration is compulsory, how the rolling turnover and next-30-day tests differ, what changes after registration and how to plan VAT returns without treating VAT as revenue.
- Corporation Tax Deadlines: pay, file and keep records in the right orderA plain-English guide to the different Corporation Tax, Company Tax Return and Companies House deadlines, including the 2026 commercial-software change.
- Payments on Account: why your January tax bill is biggerUnderstand Self Assessment payments on account, who usually pays them, why January can include two amounts, how the 31 January and 31 July dates work, and when a reduction is appropriate.
Keep structure and records clear
Use the specialist-sensitive guides for MTD readiness and limited-company director money movements.
- Making Tax Digital for Income Tax: what to do in 2026Check whether Making Tax Digital for Income Tax applies to you, understand the 2026 thresholds and quarterly updates, and prepare your records and software.
- Director Salary, Dividends and Loans: keep the routes separateUnderstand the record-keeping and tax distinctions between director salary, properly declared dividends and director’s loan account movements in a small limited company.
Complete library
All guides in Tax Reserves
Guide
Small Business Tax Calendar: build a date system you can trust
Create a reliable UK tax reminder system for Self Assessment, VAT, PAYE and Corporation Tax using the dates in your HMRC accounts and accounting period.
ExploreGuide
Director Salary, Dividends and Loans: keep the routes separate
Understand the record-keeping and tax distinctions between director salary, properly declared dividends and director’s loan account movements in a small limited company.
ExploreGuide
How to Save for Tax (and Never Panic in January)
A simple, percentage-based system to ensure you always have the money for Corporation Tax, VAT and Self Assessment, without needing a degree in accounting.
ExploreGuide
Business Emergency Funds: How Much and Where to Keep One
Why an emergency fund is a completely separate thing from a tax reserve and a cash buffer, and a practical way to build one without starving the business of investment.
ExploreGuide
How to Prepare for Year End Without the Last-Minute Scramble
The paperwork, numbers and conversations to get in order before your financial year end, so your accounts and tax bill hold no surprises.
ExploreGuide
Making Tax Digital for Income Tax: what to do in 2026
Check whether Making Tax Digital for Income Tax applies to you, understand the 2026 thresholds and quarterly updates, and prepare your records and software.
ExploreGuide
Payments on Account: why your January tax bill is bigger
Understand Self Assessment payments on account, who usually pays them, why January can include two amounts, how the 31 January and 31 July dates work, and when a reduction is appropriate.
ExploreGuide
Corporation Tax Deadlines: pay, file and keep records in the right order
A plain-English guide to the different Corporation Tax, Company Tax Return and Companies House deadlines, including the 2026 commercial-software change.
ExploreGuide
VAT Registration and Returns: the small-business guide
Learn when VAT registration is compulsory, how the rolling turnover and next-30-day tests differ, what changes after registration and how to plan VAT returns without treating VAT as revenue.
ExploreSubtopics
What this hub covers
Sole Trader Tax
Income Tax, National Insurance and Payments on Account.
Limited Company Tax
Corporation Tax, VAT and Dividend Tax.
VAT
Registration thresholds, schemes and deadlines.
Record keeping
What you must keep and for how long.
Featured tool
Tax Reserve Calculator
Enter your revenue and costs to see your estimated tax liability.
Open the toolFree checklist
Tax habit checklist
The routine that removes tax anxiety.
- Open a separate, high-interest savings account for tax
- Move the tax percentage of every invoice paid immediately
- Never use the tax pot for operating costs
- Reconcile your books monthly, not annually
Frequently asked questions
- What percentage should I save for tax?
- As a rule of thumb, sole traders should save 25-30% of their gross income. Limited companies need to save for Corporation Tax (19-25%) plus VAT if registered.
- When is the tax deadline?
- Self Assessment is 31st January. Corporation Tax is due 9 months and 1 day after your year-end. VAT is usually quarterly.
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Related guidance
How Tax Reserves connects to the rest of the site, and what to read alongside it.
Do this next
Next steps in Tax Reserves
- 1
Read Small Business Tax Calendar: build a date system you can trust
Create a reliable UK tax reminder system for Self Assessment, VAT, PAYE and Corporation Tax using the dates in your HMRC accounts and accounting period.
Read the guide - 2
Run the Tax Reserve Calculator
Enter your revenue and costs to see your estimated tax liability.
Open the tool - 3
Score your whole financial setup
Ten areas in about five minutes, with a seven-day and 30-day plan you can print.
Start the check-up - 4