Take control of your finances before the tax year ends

Life is hectic—juggling work, family, and social commitments leaves little time to think about finances. For many women, the idea of managing money and planning for the future can feel overwhelming, especially when the end of the tax year looms. You may find yourself asking:

Am I making the most of my tax allowances?
Am I missing out on opportunities to save money or grow my investments?
What happens if I overlook key deadlines?

The reality is, without a clear financial plan, you could be leaving money on the table or facing unexpected tax bills that eat into your hard-earned income.

Many women feel trapped in a cycle of last-minute decision-making when it comes to their finances, which can lead to unnecessary stress and financial setbacks. But it doesn’t have to be this way.

With the right strategies and support, you can regain control of your finances, reduce your tax liabilities, and work towards your financial goals with confidence.

In this article, we’ll explore actionable steps to help you take charge of year-end tax planning, why seeking professional advice can be a game-changer, and how a Financial Planner can simplify the process for you.

Understanding year-end tax planning

Tax planning is the process of arranging your financial affairs to minimise tax liabilities and maximise savings. Understanding year-end tax planning is essential, especially as the end of the tax year can present opportunities to lower your tax bill. By effectively managing your investments, income streams, and allowances, you can ensure that your financial plan remains tax-efficient.

Moreover, it is important to be aware of your personal allowance and how it affects your income tax obligations, as failing to use these allowances could result in paying more tax than necessary.

The importance of tax planning

Paying unnecessary tax has the potential to significantly reduce your wealth and long-term investments. While HM Revenue & Customs (HMRC) provides several tax allowances and thresholds to help reduce your tax exposure, understanding them can be challenging. If you make a mistake, you (or your family) could face an unexpected – and potentially significant – tax demand.

Tax efficiency is central to good financial planning, and assessing whether your wealth is as tax-efficient as possible is crucial. By working with a Financial Planner, you can learn how to use your allowances and thresholds to reduce your tax liability, potentially boosting the growth of your wealth, investments, or pension pot.

Key deadlines for the end of the tax year

The end of the tax year is a critical time for financial planning, with significant deadlines to bear in mind. For the 2024/25 tax year, the deadline for making pension contributions and utilising your ISA allowance is 5 April 2025.

It is also vital to be aware of the Self Assessment tax return deadlines: 31 January for online submissions and 31 October for paper returns. Missing these deadlines can result in penalties, so planning ahead and ensuring all necessary actions are taken before the tax year ends is essential to avoid unnecessary tax burdens.

How a Financial Planner can help you

A Financial Planner can provide invaluable support in navigating the complexities of year-end tax planning. They can help you understand your personal tax band and the implications of your income, ensuring you make the most of available allowances. Financial Planners can also assist in structuring your investments and income streams to minimise tax exposure.

By offering tailored strategies, they can help you optimise your tax efficiency, enabling you to take full advantage of available reliefs and benefits, ultimately leading to potential savings and enhanced financial security.

Strategies for effective tax returns

Common types of tax returns

Individuals may need to complete various types of tax returns depending on their circumstances. The most common is the Self Assessment tax return, which is required for self-employed individuals, freelancers, or those with additional sources of income. If you are unsure of whether you need to complete this, you can find the full list here.

It is important to accurately report all income, including wages, dividends, and rental income, as well as any allowable expenses. Understanding the different types of returns and their requirements is crucial to ensure compliance and avoid penalties from HMRC.

Additionally, knowing which tax band you fall into can help in planning your finances more efficiently, resulting in better tax outcomes.

Maximising deductions in your tax return

To maximise deductions in your tax return, it is essential to be aware of all eligible expenses. Common deductions include business expenses for self-employed individuals, such as travel, accommodation, and office supplies. Contributions to pensions can also provide significant tax relief, reducing your taxable income.

Understanding and using these deductions effectively can lead to substantial tax savings. A Financial Planner can work with your Accountant to help identify all potential deductions and ensure they are correctly claimed on your tax return. By seeking professional advice, you can navigate the complexities of tax legislation and optimise your financial plan to lower your tax bill.

Preparing for Self Assessment tax returns

Preparing for Self Assessment tax returns involves gathering all necessary financial information and documentation. This includes records of income, expenses, and any tax reliefs you plan to claim. It is important to maintain meticulous records throughout the year to simplify this process.

Financial Planners can assist in ensuring that you are aware of any changes to tax regulations that may affect your return. By being well-prepared, you can avoid last-minute stress and potential penalties for late submissions.

Proactive personal tax planning will not only improve your compliance with current tax laws but also support the achievement of your financial goals.

Personal Tax Planning Tips

Understanding your personal tax band

Understanding your personal tax band is crucial for effective financial planning. For the 2024/25 tax year, the personal allowance is set at £12,570. Income above this threshold is taxed at varying rates: basic-rate taxpayers pay 20% on income between £12,570 and £50,270, higher-rate taxpayers incur a 40% charge on income from £50,270 to £125,140, and additional-rate taxpayers pay 45% on income exceeding £125,140.

Being aware of these bands enables better planning of income and investments to minimise tax liabilities. A Financial Planner can guide you through these complexities, helping you align your financial goals with the current tax landscape and ensuring you are well-positioned to manage your tax efficiently.

Tax-efficient ways to manage your income

Managing your income in a tax-efficient manner can significantly reduce your overall tax burden. This can include using tax efficient investments such as ISAs, where any income and capital gains are free from any further tax liability in the hands of the investor. Additionally, salary sacrifice arrangements allow employees to exchange part of their salary for non-cash benefits, which can reduce taxable income.

Understanding the impact of dividends and capital gains can also assist in structuring income to maximise tax efficiency. A Financial Planner can provide tailored advice on the best strategies to suit your financial circumstances, ensuring you optimise your investments while effectively managing your tax liabilities throughout the year.

Utilising tax allowances effectively

Making the most of tax allowances is vital for minimising your tax liability. For example, in the 2024/25 tax year, the capital gains tax (CGT) exemption is £3,000, having been reduced from £6,000 in the 2023/24 tax year, and £12,300 in the 2022/23 tax year. If you have gains to realise, it is advisable to do so before the end of the tax year to take advantage of this years annual exemption if you have not used it already. Similarly, the dividend allowance is currently £500, reduced from £1,000 last tax year.

Making full use of these allowances can result in considerable tax savings. A Financial Planner can help you ensure you maximise these opportunities, aligning your financial plan with your long-term goals while minimising your tax bill.

Tax implications of capital gains

Understanding the tax implications of capital gains is essential for effective year-end tax planning. CGT applies when you sell or dispose of assets that have increased in value. For the 2024/25 tax year, individuals can realise gains of up to £3,000 tax-free. CGT rates depend on your income tax band, with gains above the annual exemption subject to tax at 18% within the basic rate band and 24% for gains falling into the higher rate tax bands. Gains arising prior to 30 October 2024 are liable to tax at 10% for gains within the basic rate or 20% higher rates with a 8% and 4% surcharge respectively on gains from residential property interests.

By carefully planning the timing of asset sales, you can optimise tax efficiency, especially if you have losses from previous years to offset gains. Consulting a Financial Planner can help you navigate these complexities effectively.

Planning for inheritance tax

Planning for inheritance tax (IHT) is vital to ensure your estate is managed efficiently and your beneficiaries receive the maximum benefit. The nil-rate band remains frozen at £325,000, meaning estates above this threshold may attract IHT. However, when assessing the value of your estate you also have to add back in any non exempt gifts you made in the previous seven years. Individuals can gift up to their annual allowance of £3,000 per year without triggering IHT, and unused allowances can be carried forward for one year.

It was announced in the Autumn 2024 budget that most pension funds will fall into the estate for inheritance tax (IHT) purposes from 6th April 2027. As a result, more focus will need to be placed on inheritance tax planning in the coming years.

With rising asset values, proactive planning is essential to mitigate IHT liabilities. A Financial Planner can assist in developing gifting strategies and other methods to reduce potential IHT exposure, ensuring more of your wealth is preserved for your loved ones.

Maximising pension contributions before year-end

Maximising pension contributions before the end of the tax year can provide significant tax advantages. For the 2024/25 tax year, the annual allowance for pension contributions is £60,000. Contributions to pensions are tax-deductible, reducing your taxable income. Higher-rate taxpayers can claim additional relief through Self Assessment, further enhancing the tax efficiency of their contributions. Unused allowances from the past three years can also be carried forward if you have been a member of a qualifying pension scheme.

However, high earners and those that have already previously accessed a defined contribution pension need to be careful of the Tapered Annual Allowance and the Money Purchase Annual Allowance respectively. If you are subject to these, then you may not have the full £60,000 annual allowance available to you.

A Financial Planner can help you strategise pension contributions to maximise tax relief and ensure you are taking full advantage of the available benefits, depending on your individual circumstances.

Find a Financial Planner that understands you

Choosing the right Financial Planner for you

Choosing the right Financial Planner is key to effective tax planning and financial management. You will be sharing your personal goals and circumstances, and work with them as you journey through life. Find a Financial Planner that understands you and that you connect with.

Seek advisers who are qualified and knowledgeable about tax regulations and financial strategies. Ensure they hold relevant credentials, such as Chartered Financial Planner status, and assess their experience in areas relevant to your needs. A good adviser will take time to understand your individual financial situation and offer personalised advice aligned with your goals. Discussing fees upfront ensures transparency and helps establish a trusting relationship, enabling better financial planning.

Expert Financial Advice for year-end planning

Expert financial advice becomes invaluable as the end of the tax year approaches. A knowledgeable Financial Planner can help you navigate complex tax regulations, ensuring you make the most of available allowances and reliefs. They can create bespoke strategies to minimise your tax liabilities while providing insights into the financial implications of your decisions. Moreover, great advisers can keep you organised, ensuring all necessary actions are completed ahead of key deadlines. This not only reduces stress but also improves your financial outcomes during tax season.

Creating a Comprehensive Financial Plan

Developing a comprehensive financial plan involves evaluating your current financial position, setting clear goals, and devising strategies to achieve them. A Financial Planner can integrate tax planning into your overall financial strategy, ensuring areas such as investments, retirement planning, and estate planning work cohesively.

Regular reviews and updates to your financial plan are crucial to adapt to changing circumstances and tax regulations. Your life, the economy and tax rules will not stay static. So your financial plan should not be static either. A well-structured plan not only provides peace of mind but also keeps you on track to achieve your financial aspirations.

💸 Want to save more this current tax year? Let’s create your strategy before the year ends!

Clicking a link will open a new window. Any external sites are not endorsed by St. James’s Place

Don't let HMRC take more than their fair share in 2025: Master your tax year end and tax return 📆