End of Financial Year: A Checklist for Small Business Payments (UK)
It is late March. The "Open" sign is flipped, the doors are locked, but your work is far from over. Instead of heading home, you are staring at a mountain of paper receipts and a flickering spreadsheet.
The UK tax year ends on 5 April, and for most SME owners, this period is a source of pure dread. Reconciling a year’s worth of card transactions, spotting missing payments, and ensuring your VAT returns are spot-on can feel like a second full-time job.
If you are still manually matching bank statements to merchant reports, you are not just losing sleep—you are losing money. Errors in your small business financial year end reporting lead to more than just stress; they lead to HMRC penalties and missed tax reliefs.
At Teya, we believe your time is better spent serving your community than wrestling with admin. This checklist will help you get your payment data in order, review your costs, and step into the new financial year with total clarity.
The High Cost of "Good Enough" Accounting
Many UK businesses still rely on legacy card machines from big banks. These often come with "blended" fees that make it nearly impossible to see what you actually paid per transaction.
When you get to the end of the year, you might find that "cheap" rate you were promised was inflated by hidden "non-secure" or "PCI-compliance" charges. According to the British Retail Consortium, retailers paid £1.48 billion in card fees in 2024—a figure that has more than doubled since 2019.
If you don't have a clear review of your merchant fees, you are likely overpaying.
Your 2025/2026 Year-End Payment Checklist
Follow these steps to ensure your payments are reconciled and your business is compliant.
1. Reconcile Your Final March Transactions
Ensure every tap, dip, and swipe from the last month matches your bank deposits.
Identify 'In-Flight' Payments: Card payments taken on 5 April might not hit your account until the 6th or 7th. Make sure your accountant knows which year these belong to.
Check for Voids and Refunds: Ensure all customer refunds are accounted for so you don't pay tax on revenue you didn't actually keep.
Download Your Annual Reports: Teya members can pull annual revenue reports directly from their dashboard, showing a clean breakdown of gross sales vs. net settlements.
2. Audit Your Merchant Fees
Most traditional UK banks bury fees in complex monthly statements.
Total the 'Effective Rate': Divide your total monthly fees by your total card turnover. If this number is creeping up, it is time to switch to a provider with transparent pricing.
Claim Fees as a Business Expense: Merchant service charges are a 100% tax-deductible business expense. Don't leave this money on the table.
3. Prepare for New HMRC Regulations
The regulatory environment for UK SMEs is shifting.
Making Tax Digital (MTD): While MTD for Income Tax is scheduled for April 2026 for those earning over £50,000, staying digital now makes the transition seamless.
Statutory Sick Pay (SSP) Changes: From 6 April 2026, new rules will likely remove the Lower Earnings Limit for SSP. Your payroll and payment systems need to be ready for these increased operational costs.
FCA Consumer Duty: Ensure your pricing for customers is fair and transparent, as the FCA continues to tighten standards on how financial services interact with SMEs.
4. Review Your "Buy Local" Performance
The end of the year is the best time to look at your customer loyalty.
How many of your customers were "Members" since last year?
Did your peak sales periods align with your staffing levels? Using a tax preparation guide is helpful, but using your own payment data to forecast for 2026 is what drives growth.
Why Legacy Banks are Failing UK SMEs
The "Big Four" banks often treat small businesses like an afterthought. You might face:
Slow Payouts: Waiting 3–5 business days for your own money to clear.
Hidden Fees: Random charges for "minimum monthly service" or "statement fees."
Zero Support: Being stuck in a phone queue for hours when your card machine goes down on a busy Saturday.
At Teya, we do things differently. We provide next-day payouts as standard because we know cash flow is the lifeblood of a local pub or shop. We offer fair, transparent pricing with no hidden nasty surprises at the end of the year. And if something goes wrong, you can talk to a human being who actually understands your business.
Moving Into 2026 With Confidence
The GOV.UK Self-Assessment deadlines are fixed, but your stress level doesn't have to be.
By automating your payment reporting and choosing a partner that puts your business first, you can turn the end of the financial year from a nightmare into a routine check-up.
Make sure you have:
Captured every transaction.
Accounted for all fees.
Backed up your digital records.
Reviewed your card machine contract for hidden costs.
Get Started With Teya
Stop wrestling with spreadsheets and start growing your business. We help UK SMEs simplify their payments, improve their cash flow, and actually enjoy running their shops.
Team Teya
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