Pay Less Tax as a Business Owner: 3 Five-Minute Hacks

We all want to feel confident that we’re not overpaying on tax, but when you’re spinning all the plates as a business owner, the financial admin often gets pushed down the to-do list. The good news? You don’t need a full day blocked out in your calendar or a maths degree to start making meaningful changes. Sometimes, it’s the smallest habits that add up to the biggest difference, especially when it comes to staying tax-efficient.

These three five-minute tax hacks can help you stay ahead of your obligations, make the most of your allowances, and feel more confident in how you manage your money without the overwhelm. They’re not just about saving money; they’re about building stronger financial habits that support the long-term success of your business.

1. Get Clear on What You Can Claim

Far too many business owners overpay tax simply because they aren’t claiming for everyday expenses they’re legitimately entitled to. In the early days of business, many people are so focused on income that they forget to track what’s going out or they feel unsure about what “counts” as a business expense.

But let’s keep it simple. If the expense relates directly to running your business whether that’s a software subscription, a Zoom account, printer ink, mileage to a client meeting, or part of your broadband then it’s worth exploring whether it’s deductible. The same applies to home office costs, phone bills, and anything else you’re already paying for that supports your work.

Taking just five minutes a week to go back over your recent spending and log what’s relevant can make a big difference. Even better, make it a habit to snap a photo of your receipts and upload them to your accounting app in real time. These little moments of consistency reduce the risk of missed claims and give your accountant a much clearer picture when it comes to tax time.

And remember it’s not about pushing the boundaries. It’s about confidently claiming what’s fair and accurate and keeping the right records so you’re always prepared.

2. Use Your Personal Allowances Wisely

If you’re running a limited company, one of the most powerful ways to reduce your tax liability is to take full advantage of the allowances available to you. That starts with how you take money from the business. Many directors benefit from a mix of salary (up to the tax-free personal allowance threshold) and dividends, which are taxed differently. But it’s amazing how many people aren’t making the most of this because they simply haven’t reviewed their setup in a while.

Take five minutes to check: are you using your personal allowance? Are you staying under the dividend threshold? Could your spouse or civil partner use their allowances to help reduce your household tax burden?

One of the biggest missed opportunities I see time and time again is pensions. Business owners often prioritise reinvesting in the business or taking cash, and forget they can make employer contributions to their pension through the company. Not only are these contributions tax-deductible (meaning they reduce your corporation tax bill), but they also don’t attract National Insurance making them one of the most tax-efficient ways to extract profit.

You don’t need to make huge contributions to see the benefit. Even small, regular payments add up and that five minutes spent reviewing your pension contributions could save you more than you think in tax while setting you up for long-term wealth. If you’re not sure where to start, speak to your accountant or a financial adviser who understands the nuances of tax and pensions for directors.

3. Don’t Wait Until Year-End to Review Your Numbers

So many business owners only start thinking about their numbers when their accountant asks for them often months after the financial year has ended. By that point, your options to act are limited. But just five minutes a month spent reviewing your income, expenses, and projected profit can change that entirely.

Why? Because it gives you the chance to make proactive decisions. If your profit is higher than expected, you might choose to bring forward a planned investment (like a new laptop or training programme) or top up your pension. If it’s lower, you can course-correct sooner. Either way, you’re making informed choices based on real data not just reacting at year-end.

You don’t need to overcomplicate it. Just ask: What came in? What went out? Am I setting aside enough for tax? Is there anything coming up that I should plan for now?

These quick check-ins help reduce financial anxiety, put you back in control, and make tax season feel like just another part of business not a massive annual drama.

Final Thought

Tax planning doesn’t have to be confusing, difficult, or time-consuming. In fact, some of the most effective habits take just a few minutes and can be done with a cup of tea and a notebook. Whether it’s tracking your expenses weekly, reviewing your pension options, or checking your numbers at the end of the month, these five-minute actions are about creating clarity and reducing the stress that comes with financial unknowns.

Being more tax-efficient is about more than just saving money. It’s about feeling informed, confident, and in control of your business. So, if you’ve been avoiding your numbers, start small. Pick one of these hacks, set a five-minute timer, and make it happen. Your future self (and your accountant) will thank you.

About the Author

Sam Hoyle is an experienced Chartered Accountant (FCA fellow and ICAEW accredited) and Profit Strategist, who specialises in working with female service providers to maximise their profits to fund their dream lifestyle. Sam has over 10 years of experience of working with business owners on profit strategy, and shares regular profit strategy tips on her instagram @harmonyaccounting. For more information visit Harmony Accounting.