Taxpayers stand to save lots of each cash and complications in 2025 by committing to higher tax practices within the 12 months forward, in line with main audit, tax and enterprise advisory agency Blick Rothenberg.
Robert Salter, a Director on the agency, notes: “Most people make personal resolutions about health and lifestyle, but your financial health is equally important—and being on top of your taxes plays a significant part.”
With the deadline for the 2023/24 tax return set at 31 January 2025, Salter means that anybody who has but to finish their submission ought to resolve to take action earlier this 12 months. “It will help you avoid stress and the risk of an HMRC penalty,” he says.
He additionally factors out that taxpayers could also be overlooking invaluable reliefs, significantly in the event that they pay tax at 40 or 45 per cent. Present support contributions can ship fast financial savings when claimed by a self-assessment tax return, and people made throughout the 2024/25 tax 12 months can nonetheless be introduced ahead for reduction within the earlier 12 months if accomplished earlier than submitting.
In accordance with Salter, pension planning will also be a robust new 12 months pledge. Bonuses paid in February or March may very well be directed right into a pension scheme by way of an employer contribution slightly than taken as money, probably decreasing the general tax invoice.
For these trying to maximise their state pension, Salter highlights a Nationwide Insurance coverage Contributions (NICs) easement which stays accessible till 5 April 2025. This enables folks to fill in any gaps relationship again to 2006/07 and will enhance future pension funds.
One other decision may very well be to evaluate how investments are held, particularly for {couples} the place one partner is a non-taxpayer or lower-rate taxpayer. Transferring property legally to the lower-rate taxpayer may profit from private allowances and probably cut back the general tax burden.
Salter lastly advises checking your PAYE tax code for 2025/26 to make sure any pension contributions, skilled subscriptions or benefits-in-kind are precisely mirrored: “That way, you get the right tax relief straight away and avoid a shock bill when your return is filed.”
