As the end of the UK tax year 2025/26 approaches on 5 April 2026, now is the time to review your finances and take advantage of available tax planning opportunities. Whether you are self-employed, a business owner, a landlord, or have investment income, early planning can help reduce your tax bill and avoid missed deadlines.
This blog highlights key dates and practical tax strategies to consider before the end of the tax year.
Key tax deadlines 2025/26
The UK tax year runs from 6 April to 5 April each year and there are a number of key tax deadlines to be aware of:
- 31 January: Online Self-Assessment tax return submission deadline for tax year 2024/25.
- 31 January: Deadline for paying the unpaid tax due for the 2024/25 tax year.
- 31 January: First payment on account for the 2025/26 tax year
- 5 April 2026: End of the 2025/26 tax year.
- 31 July: Second payment on account for the 2025/26 tax year
- 31 October 2026: Deadline for paper Self-Assessment tax returns.
- 31 January 2027: Deadline for online tax returns and payment of any balancing tax due.
Note: Failing to meet these payment deadlines can result in penalties and interest, so plan ahead and ensure you stay up to date with your tax obligations and pay outstanding tax due.
Tax planning opportunities before 5 April 2026
Pension contributions
Pension contributions remain one of the most effective ways to reduce taxable income while planning for the future.
Tax relief is generally available on pension contributions of up to £60,000 per year, although this allowance may be reduced for higher earners or limited to £10,000 for individuals already drawing flexible pension income. Any unused pension allowance from the previous three tax years can usually be carried forward, potentially allowing for larger one-off contributions.
You can normally contribute up to the level of your earnings, subject to the available allowance. Contributions benefit from at least 20% tax relief, with higher and additional rate taxpayers able to claim further relief through their tax return.
It is also possible to make pension contributions for a spouse, civil partner or children. Even where they have little or no income, contributions of up to £3,600 per year can still attract basic rate tax relief.
Given the complexity of pension rules, professional advice should be taken before making significant contributions.
ISAs and tax-efficient savings
The Personal Savings Allowance allows individuals to earn a limited amount of interest from savings without paying income tax. For basic rate taxpayers, up to £1,000 of savings interest is tax-free, while higher rate taxpayers can earn up to £500, with no allowance available for additional rate taxpayers. Interest above these limits is taxed at your marginal rate, so reviewing savings income before the end of the tax year can help avoid unexpected tax charges.
Individual Savings Accounts provide a simple and flexible way to invest while sheltering returns from both income tax and Capital Gains Tax.
UK residents aged 18 or over can invest in cash ISAs, stocks and shares ISAs and innovative finance ISAs, with a total ISA allowance of £20,000 for the 2025/26 tax year across all ISA types. Individuals aged 18 to 39 can also contribute up to £4,000 to a Lifetime ISA, which counts towards the overall limit.
Lifetime ISAs benefit from a 25 % government bonus and can be used towards the purchase of a first home or retained for later life. Withdrawals made for other purposes or before age 60 are usually subject to a withdrawal charge.
Parents and family members can also contribute to a Junior ISA for children under 18 who do not hold a Child Trust Fund. The contribution limit for Junior ISAs in 2025/26 is £9,000.
Seed Enterprise Investment Scheme (SEIS) and Enterprise Investment Scheme (EIS)
The Seed Enterprise Investment Scheme (SEIS) provides tax relief for individuals prepared to invest in new and growing companies. It is also known as the “junior” version of the Enterprise Investment Scheme (EIS), and may be more suitable for certain investments.
Under the SEIS, investors can claim generous income tax and capital gains tax (CGT) reliefs for their investment. Companies can also use the relief provided by the scheme to attract additional investment to further develop their businesses.
Capital Gains Tax: Timing disposals carefully
The timing of asset disposals can have a significant impact on your Capital Gains Tax position.
Changes to Capital Gains Tax (CGT) in 2026 may affect business owners’ decisions on when to sell their businesses and assets.
Business Asset Disposal Relief (BADR), which reduces the effective CGT rate, is due to increase from 14% to 18% for assets disposed of on or after 6 April 2026. The BADR’s lifetime limit of £1m remains unchanged.
If disposals earlier in the tax year have resulted in an overall capital loss, the decision to realise further gains before 5 April 2026 will depend on the size of those gains and your level of taxable income. In some cases, bringing gains into the current tax year may mean a greater proportion is taxed at a lower CGT rate.
For married couples and civil partners, transferring assets between spouses before disposal can be an effective planning tool, allowing gains to be matched against unused allowances or spare basic rate tax bands.
CGT on most assets is payable by 31 January following the end of the tax year in which the disposal is made. Delaying a significant sale until after 5 April 2026 could defer the tax payment by up to 12 months.
Different rules apply to UK residential property that does not qualify for main residence relief. In these cases, CGT must be reported and paid within 60 days of completion.
Claim all allowable deductions
Claiming all available deductions and reliefs is an important part of effective tax planning and can significantly reduce your overall tax liability. For self-employed individuals and business owners, this includes ensuring that all allowable business expenses are identified and claimed, such as office costs, professional fees, software subscriptions, travel expenses, and the use of a home for business purposes, where applicable. Landlords should carefully review deductible property expenses, including repairs, maintenance, and allowable finance costs.
It is equally important to review entitlement to personal reliefs and allowances, including charitable Gift Aid donations, pension contributions and any reliefs linked to investments or losses. Accurate and complete record keeping throughout the year is essential, as HMRC may request evidence to support claims. Reviewing your position before the end of the tax year allows time to identify any missed deductions and ensure that claims are made correctly and in line with current legislation.
Timing of dividends and bonuses
The timing of dividends and bonuses can have a meaningful impact on how much income tax you pay, particularly if your income fluctuates or sits close to a tax threshold.
If you control the timing of payments, for example, as a director or owner-managed business, taking dividends or bonuses before or after the end of the tax year can determine which tax year they fall into and which tax rates apply. Bringing income forward into a year where your total earnings are lower may keep more of it within a lower tax band, preserve entitlement to allowances, or avoid pushing income into higher tax rate bands. Conversely, deferring income until the next tax year can be beneficial if you expect your income to fall, or if allowances or tax bands reset.
Charitable giving
Donating to charity can be both personally rewarding and tax-efficient. Where donations are made under Gift Aid, charities can reclaim basic rate tax on the value of the gift, increasing the amount they receive at no extra cost to you. Higher and additional rate taxpayers can also claim further tax relief through their tax return. In addition, gifts of quoted shares and certain other investments may qualify for relief from both income tax and Capital Gains Tax. Charitable gifts are exempt from Inheritance Tax, and leaving at least 10%of your estate to charity can reduce the rate of Inheritance Tax payable on the remainder, making charitable giving an effective part of wider tax and estate planning.
Marriage Allowance
Individuals can transfer up to 10% of their Personal Allowance to their spouse or civil partner under the Marriage Allowance rules.
This is only available where both of the following apply:
• the person transferring the allowance is a non-taxpayer or only pays basic rate tax
• the recipient pays basic rate tax only (it is not available if either partner is a higher or additional rate taxpayer)
For the 2025/26 tax year, this allows up to £1,260 of Personal Allowance to be transferred, reducing the recipient’s tax bill by £252.
Who cannot transfer the Personal Allowance?
You cannot transfer Personal Allowance if:
• either partner pays higher or additional rate tax
• you are not married or in a civil partnership
• you want to transfer more than the permitted percentage
The annual allowance also cannot be transferred to children or other family members.
Making Tax Digital in 2026
From April 2026, significant changes will apply to the way many individuals report their income tax under the Making Tax Digital (MTD) programme. Self-employed individuals and landlords with combined annual income from business and property above £50,000 will be required to maintain digital records and submit regular updates to HMRC using approved software, replacing reliance on a single annual Self Assessment return. The new system is intended to improve accuracy and reduce errors by spreading reporting obligations throughout the year. While MTD has already been in place for VAT for some time, its extension to income tax represents a major change for those affected. Further phases are planned in later years, with lower income thresholds expected to be brought into scope, making early preparation particularly important.
How Edwards Chartered Accountants can help
Tax year-end planning can be complex. Edwards Chartered Accountants provide tailored advice to help individuals minimise tax liabilities, plan pension and investment contributions effectively, manage Capital Gains Tax exposure and stay compliant with HMRC requirements.
Our tax advisory team also supports businesses in minimising tax through tax planning and utilising tax reliefs. Our corporate tax team can assist with Corporation tax, Capital Allowances, tax-efficient restructuring, corporate tax planning, exit tax planning, share option schemes and R&D tax credits.
Contact Edwards today to help you and your business save on taxes.