What to Check Before 5 April 2026
At a glance
- The 2025 to 2026 tax year ends on 5 April 2026. Online Self Assessment for this year is due by 31 January 2027.
- ISA limits remain twenty thousand pounds for adults and nine thousand pounds for Junior ISAs.
- The dividend allowance is five hundred pounds and the Capital Gains Tax annual exempt amount is three thousand pounds.
- From 6 April 2026, Making Tax Digital starts for many sole traders and landlords with income above fifty thousand pounds.
- If surplus cash remains after planning, consider using it for something you will genuinely enjoy, like a holiday!
Dates that matter
Two dates anchor the year end. 31 January 2026 is the Self Assessment filing and payment deadline for the 2024 to 2025 tax year, including the first payment on account if it applies to you. 5 April 2026 closes the 2025 to 2026 tax year, when many allowances reset or are lost if not used. From 6 April 2026, self employed people and landlords with turnover above fifty thousand pounds enter Making Tax Digital for Income Tax for record keeping, with quarterly updates following later. For companies, Corporation Tax is usually due nine months and one day after the period end, with the Company Tax Return due twelve months after.
Personal allowances that can still work hard for you
The £100,000 trap. Your Personal Allowance tapers away once adjusted net income exceeds £100,000 and is fully lost by £125,140. A well timed pension contribution or Gift Aid donation can bring income back below the line if you act before 5 April.
Marriage Allowance. If one of you pays basic rate tax and the other has unused Personal Allowance, a transfer can cut the household tax bill by up to £252 this year. It is often relevant if one partner has stepped back from work.
Dividends. The dividend allowance is now £500. If you draw from your company or hold shares outside wrappers, estimate total dividends so you are not surprised by a bill.
Savings interest. With higher rates, interest across multiple accounts can creep over the Personal Savings Allowance. For basic rate taxpayers the allowance is £1000; for higher rate it is £500; additional rate taxpayers have no allowance. Consider whether more of your cash should sit inside an ISA for future years.
Pensions: the big lever before 5 April
Annual allowance and tapering. The standard allowance is £60,000. High earners may be caught by tapering once adjusted income is over £260,000, subject to the threshold income test. Check what you and your employer have paid so far this year and whether you can use carry forward from the previous three years. This is often valuable after a strong year in the business.
Company contributions for directors. For many owner managed companies, an employer contribution to a director pension can be efficient if it meets the wholly and exclusively test. Large one off payments need care, so coordinate with your accountant and your planner.
ISAs and investment wrappers
Use your ISA allowance. You can place up to £20,000 in ISAs for 2025 to 2026. Unused allowance does not carry forward, so decide what sits best in ISA versus pension. ISAs can provide flexible tax-free money alongside pensions, which helps manage future income levels and tax bands.
Capital Gains Tax housekeeping. The annual exempt amount is £3000. A measured review can help you realise gains within the exemption, use losses where appropriate, and gradually reset base costs without straying from your long term plan. This is not trading for the sake of it, it is about avoiding avoidable tax.
Inheritance planning that builds quietly
Annual gifting. You can gift £3000 each tax year without adding to your estate for Inheritance Tax, with 1 year of carry forward if unused. Regular gifts can support family goals and reduce future paperwork.
For business owners
Your pay mix and paperwork. Check the balance between salary, dividends and employer pension payments. Dividends declared after 5 April fall into the next tax year even if cash moves later, so get timing and minutes right. If you are close to a threshold such as £100,000, the mix can change your Personal Allowance outcome.
Trivial benefits. Directors of close companies are capped at £300 a year under the trivial benefits rules. Small, but often missed.
Capital allowances and full expensing. If you are buying qualifying plant and machinery, the Annual Investment Allowance is up to £1million, and full expensing may apply to qualifying items. Plan purchases and cash flow early with your accountant.
Corporation Tax timetables. Avoid last minute pressure by forecasting the payment due date and return deadline at the outset of the year.
A simple year end sequence
Start with a rough forecast of your total income for 2025 to 2026, especially if you are near the £100,000 zone. Confirm pension inputs to date, including employer payments. Check remaining ISA allowance and whether more cash should be sheltered. Review unwrapped investments for gains, losses and any tidy ups. If you gift to family, decide whether to use the annual exemption.
If you are self employed or a landlord with turnover above £50,000, confirm your Making Tax Digital start date and software position.
If, after doing all of that, you still have surplus cash, it may be time to enjoy it. Booking a holiday, planning a meaningful family experience, or simply spending with confidence can be just as valid as another spreadsheet. Good financial planning should support life, not delay it indefinitely.
How Abode Financial Planning can help
As 5 April approaches, it is often unclear which actions are worth taking and which will make little difference. At Abode Financial Planning in Cirencester, we help you focus on the few decisions that genuinely improve your tax position, whether that is a pension contribution, ISA funding, or managing income around key thresholds.
If you would value a clear, practical sense check before the tax year ends, we are here to help you make confident decisions without overcomplicating things.
Frequently asked questions
For many high earners and company directors the answer is yes, provided the annual allowance and tapering are checked, any company payments meet the wholly and exclusively test and the company has the profits to be able to afford it. The contribution can lower taxable income and help manage the Personal Allowance taper.
Add up all dividends and all interest since 6 April. Compare to the £500 dividend allowance and your Personal Savings Allowance. Then decide whether to shelter more in an ISA and whether to adjust your company dividend timing.
Check Marriage Allowance eligibility, balance ISA funding between you, and look at pension contributions in each name. Smoother household tax often comes from spreading income sources wisely.
Not necessarily. Some allowances, such as ISA and pension annual allowances, are very valuable, but using them should still fit your wider plans. In some years, paying down debt or keeping cash accessible may be more appropriate. The key is understanding what you are giving up by not using an allowance, rather than acting out of habit.
In most cases, allowances that apply to a specific tax year are lost if not used by 5 April. ISA allowances cannot be carried forward, and pension contributions count when they are paid, not when they are planned. That is why decisions are often best made before the final few weeks of the tax year.
No. Acting quickly can be sensible, but rushed decisions can be expensive. If an action does not clearly improve your position or support your longer-term plans, it may be better left. Good financial planning is about choosing the right actions, not simply doing more.
Ready to talk?
Book a free initial conversation and we will build a clear list of actions before 5 April, aligned to your retirement plan and your cash flow. We keep the numbers simple and the paperwork light, so you can focus on what matters most.
Sources and further guidance
The rules and allowances referenced in this article are based on current UK legislation and guidance, including:
- GOV.UK
Personal Allowance, ISAs, Capital Gains Tax, Gift Aid, National Insurance and Making Tax Digital
https://www.gov.uk - HMRC manuals and guidance
Pension contributions, dividends, trivial benefits, and business taxation
https://www.gov.uk/government/organisations/hm-revenue-customs - MoneyHelper (MaPS)
Practical guidance on pensions, ISAs and retirement planning
https://www.moneyhelper.org.uk
Readers are encouraged to check their own allowances and forecasts directly through GOV.UK or seek regulated advice.
Important information
This article is for general information only and is not personal advice. Tax and pension rules can change and the impact depends on your circumstances. If you are unsure about a decision, please seek advice. Past performance is not a reliable guide to future returns.
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Please note, the value of investments, and the income from them, may fall or rise and investors may get back less than they invested.
This information is for general information only and does not constitute advice. The information is aimed at retail clients only.
Past performance is not necessarily a guide to future performance.
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