The tax year closes on 5 April 2026, so we’ve pulled together the things that are most worth acting on, (depending on your situation) that can help bring that tax bill down.
Take five minutes to read this, there might be something here that saves you real money!
✨ FOR EVERYONE – LET’S TALK ISA’S
🚀 Use your ISA allowance of £20,000 (it doesn’t roll over)
An ISA is a savings or investment account where your money grows completely tax-free no income tax, no tax on growth which means no tax on the interest, no tax when you take it out. You can put in up to £20,000 this tax year. Don’t use it by 5 April? It’s gone. Forever.
BONUS: Couples: you each get £20,000 that’s £40,000 between you, all sheltered from tax.
🚀 Under 40? The Lifetime ISA is worth knowing about
The Lifetime ISA (LISA) is one of the most generous things the government still offers. Put in up to £4,000 per year, and they add 25% on top that’s up to £1,000 free money every year. It’s designed for buying your first home or retirement savings.
So what’s the catch? You must open one before your 40th birthday. Once you hit 40, the door closes permanently. If you’re approaching that age, opening one now, even with just £1, secures your eligibility. You can keep contributing until you’re 50. However a LISA sits within your 20k allowance not on top of it.
🚀 Got Kids? Don’t forget the Junior ISA, £9,000 per child
A Junior ISA works just like an adult ISA the money grows tax-free and is locked away until your child turns 18, when it becomes theirs. You can put in up to £9,000 per child this tax year. Parents, grandparents, friends and family can all contribute.
It’s one of the most straightforward ways to build a financial head start for your children — and the tax-free growth over 10–15 years can make a real difference.
✨ FOR EVERYONE – PENSIONS AND TAX CLAIM BACKS
💸 Top up your pension and you might be able to go back 3 years
You can contribute up to £60,000 this year to your pension, but here’s the bit most people miss… you can also use up unused allowances from the previous three years. The 2022/23 allowance disappears on 5 April 2026. After that, it’s gone for good.
💸 Donate to charity? You might be able to claim tax back
If you’re a higher rate taxpayer (40%), you can claim back an extra 20% through your tax return for Gift Aid.
There’s a lesser-known bonus too: Gift Aid donations reduce your ‘adjusted net income.’ If you’re near the £100,000 threshold where your personal allowance starts to disappear, Gift Aid donations can actually help bring you back under it, plus you can claim for the last 4 years.
💸 £3,000 of investment profit tax-free (if you use it…)
Everyone gets a £3,000 tax-free allowance each year from Capital Gains Tax (CGT). Use it or lose it it doesn’t carry forward.
If you have investments sitting outside an ISA that have grown, it might be worth reviewing whether to sell some before 5 April. If you’ve made a loss on something else, you can use that too losses can offset gains and cut your tax bill.
💸 Give money away and reduce your inheritance tax bill
You’re allowed to give away up to £3,000 per year completely free of inheritance tax. If you didn’t use last year’s allowance, you can carry it forward ONCE meaning a couple could give away up to £12,000 this month, and it falls outside their estate immediately.
Inheritance tax is charged at 40% on estates above £325,000. Gifting regularly over time is one of the simplest ways to reduce that future bill.
👋 IF YOU’RE A MARRIED COUPLE OR CIVIL PARTNER…
Here’s some things you can do right now to reduce your tax bill
🧑🤝🧑 Marriage Allowance up to £252 back, and you can backdate your claim up to 4 years
If one of you earns under £12,570 (the amount you can earn before paying any income tax) and the other is a basic rate taxpayer, you can transfer some of the unused allowance between you. That saves up to £252 a year in tax.
You can backdate this for up to 4 years but watch out the 2021/22 window closes on, you’ve guessed it, 5 April 2026.
Apply in 10 minutes at gov.uk/marriage-allowance
🧑🤝🧑 Share assets before you sell them
Married couples and civil partners can transfer assets to each other shares, property, investments without triggering a tax charge at the point of transfer. This lets you use both of your CGT allowances, both of your ISA allowances, and make sure gains are taxed at the lower earner’s rate. A simple and often overlooked benefit!
ALRIGHT LIMITED COMPANY DIRECTORS , THIS ONE’S FOR YOU 👇
💰 Review your salary and dividends because rates go up in April
Dividend tax rates are increasing from 6 April, if you take dividends from your company, it’s worth checking whether to take more before 5 April rather than after. The difference might be small or it might not be, depending on your income level.
If your total income is heading towards £100,000, this matters even more. Above that figure, you start losing your personal allowance which can push your effective tax rate to 60% on income between £100,000 and £125,140.
💰Company pension contributions is one of the most tax-efficient moves available
Pension contributions made directly by your company are deductible against Corporation Tax. You don’t pay income tax or National Insurance on them either. It’s one of the few ways to move money out of a company very tax-efficiently.
If the company has had a profitable year, a pension contribution before your company year-end can make a real dent in the tax bill.
Watch out, your company year-end may be different from 5 April check your timing with us.
Not sure what applies to you and want some help?
That’s what we’re here for. Drop us a message or give us a call we can quickly run through your situation and tell you what’s actually worth doing before the deadline.
Get in touch with the Shapes team at shapes.team
