To help you reduce your bill to HMRC, we've rounded up six simple ways to make your money work as hard as possible before the new financial year kicks in.
so you can see more independent news written by expert Which? journalists.1. Check your tax code
It's assigned to you by HMRC and tells your employer or pension provider how much tax needs to be taken out of your salary. Sometimes you may find your tax code changes, and you can end up paying more PAYE (pay as you earn) tax than you should.
Once HMRC has enough information about your circumstances, the code will be adjusted for you. The tax office will then send you something called a 'coding notice' when it's been updated. Your employer or pension provider will also be given the new information.
Remember to check any payslips that you get after that time to make sure the new tax code is appearing.
Find out more:2. Open an Isa to cut tax bills
Now is also a great time to open an account. Spring is when providers often roll out their strongest Isa deals, with cash rates in particular spiking in March and April. This table shows the top instant-access and fixed-term cash Isas, ordered by term:
| Isa type | Provider | Interest rate (AER) | Provider customer score | Minimum investment | Opening methods | Interest paid |
|---|---|---|---|---|---|---|
| Instant access | Plum | 4.66% | 73% | £1 | Mobile app | Monthly |
| One-year fixed rate | Tandem Bank | 4.2% | n/a | £0 | Mobile app | Monthly |
| Two-year fixed rate | Furness BS | 4.2% | n/a | £1,000 | Branch, internet, mobile app, postal, telephone | Anniversary |
| Three-year fixed rate | Castle Trust Bank | 4.1% | n/a | £1,000 | Internet, mobile app | On maturity |
| Four-year fixed rate | UBL UK | 3.91% | n/a | £2,000 | Branch, internet, mobile app, postal | Monthly, quarterly, anniversary, on maturity |
| Five-year fixed rate | Furness BS | 4.3% | n/a | £1,000 | Branch, internet, mobile app, postal, telephone | Anniversary |
3. Pay more into your pension
You can get tax relief on pension contributions up to 100% of your earnings, or £3,600 if your earnings are lower. Most people also have a yearly limit of £60,000, known as the annual allowance, that resets on 6 April.
However, your personal limit might be higher or lower depending on your circumstances. For example, if you’re a high earner with an ‘adjusted income’ of more than £260,000, your annual allowance could be as little as £10,000.
You or your employer may be able to contribute more than the yearly limit and still receive tax relief. This is possible by carrying forward any unused allowances from the previous three tax years.
Find out more:4. Married couples can maximise their CGT allowance
If you make a financial gain selling a property (that's not your main home) or asset, you might need to pay capital gains tax (CGT).
The amount of profit you can make before any tax is payable is £3,000 in 2025-26. The tax rate you pay depends on your income and the type of asset. For residential property, it is 18% for basic-rate taxpayers and 24% for higher-rate taxpayers.
Married couples each have their own CGT allowances, which means you have a combined household allowance of £6,000. It's possible to transfer assets between one another to make the most of both spouses' annual CGT allowance. Transferring an asset into your joint names will have the same effect.
If you transfer an asset to your partner and they later sell it, the capital gain will usually be calculated from the original price you paid for it, not from when the asset was transferred.
Find out more:5. Gift to reduce inheritance tax
Every tax year, you can give away up to £3,000 in total – in cash or gifts – without any IHT to worry about. This is the annual gifting allowance. You can give this entire amount to one person or divide it among several different people.
Don’t worry if you don’t make full use of your allowance over the year, as anything unused can be rolled over into the new tax year – but only for one year.
This means you could give up to £6,000 across two tax years without your loved ones facing an IHT charge.
Find out more:6. Review your council tax band
If you're likely to be hit with a higher rate in the new financial year, you may be able to take steps to cut costs.
Depending on your circumstances, you may qualify for a council tax discount of 25%. You can get this discount if you live alone or with others who are 'disregarded' for council tax purposes, such as full-time students.
Other reductions may be available on empty properties, as well as second homes and holiday homes. These discounts aren't applied automatically, so if you think you fit the bill, you’ll need to write to the council and make your case.
Reviewing your council tax band is another option if you think the original valuation of your home might have been wrong, or changes made to the property's use or size since its valuation might alter the band it should sit in.
Find out more:source https://www.which.co.uk/news/article/6-ways-to-make-your-money-work-harder-before-the-new-tax-year-aZ9fC3O7cyi8