Tax year-end planning: the mid-tax-year check-in for 2025-26

Tax planning is an important part of your money management – and although the tax year-end may seem like a distant event, it’s helpful to start preparing now rather than leave it to the last minute.

Getting organised prior to the tax-year end can be hugely beneficial in making sure you use your allowances. Here, we offer some mid-year tax planning tips to help you make the most of your money.

1. Run a mid-year allowance audit

So, when does the tax year start and end in the UK? The current tax year began on 6th April, 2025 and will end on 5th April, 2026.

That means we’ve just about passed the mid-way point of this tax year, making it a great time to assess how much of your tax allowances you’ve used so far.

Doing this now gives you the chance to make adjustments before the tax year-end, so you don’t miss out on potential tax-saving opportunities.

Look at areas where you can make the most of tax efficiencies, such as your Individual Savings Accounts (ISAs), pension contributions and gift allowances.

They each have annual limits, which we’ll explore further below.

It may be helpful to assess your pension contributions to ensure you’re making the most of the available tax relief.

For the 2025/26 tax year, you can contribute up to £60,000 or 100% of your relevant earnings, whichever is lower, and benefit from tax relief. Importantly, these amounts include any tax relief. Contributions to both Personal and Workplace Pensions are included.

If planned carefully, this can also reduce your overall tax bill on income, allowing you to save more for your future.

However, bear in mind that you can’t access your pension pot until you reach your normal minimum pension age, which is currently 55 and will rise to 57 by 2028. So, increasing your contributions now means locking in money that you won’t be able to use until later in life.

It’s also important to note that the £60,000 allowance may be reduced if you have accessed your pension flexibly or have a high income.

If you’re unsure what your allowance is or would like personalised advice on your pensions and retirement plan, contact us today.

3. Top up your Stocks & Shares ISA

Currently, you’re allowed to invest up to £20,000 tax-free across your ISAs in the tax year.

Remember that the annual ISA allowance is a combined total, so if you hold multiple ISAs, you need to keep track of how much you’ve contributed across all of them.

If you haven’t reached the limit yet, it may be a good time to consider adding funds to ISA(s) if this aligns with your current financial position and objectives. Be careful to check more specialist products such as Lifetime ISAs and Junior ISAs, as they have lower allowances.

For long-term goals, our Stocks & Shares ISAs may be a suitable option, as they offer the potential for higher returns compared to Cash ISAs.

However, these investments come with risk. The value of your investments can increase or decrease, and there’s no guarantee that you’ll make a profit.

For shorter-term goals of less than five years, a Cash ISA may be more suitable due to its stability and lower risk. To find the right ISA for you, take a look at our useful guides.

For long-term, our Stocks & Shares ISAs may be a suitable option, as they offer the potential for higher returns compared to cash ISAs.

A flexible ISA can be a useful tool for managing your tax-free savings. It allows you to withdraw from and re-deposit funds, without it counting as a new contribution, as long as it’s within the same tax year.

For example, if you put £10,000 into your flexible ISA, and then withdraw £3,000, you can then put the £3,000 back into your ISA before the end of the tax year without counting towards your £20,000 annual limit.

This flexibility can be beneficial if you need quick access to cash but still want to make the most of your tax-free allowance.

Our flexible Stocks & Shares ISA allows you to withdraw and replace money, plus there are no limits on when you can access your cash.

Not all ISAs are flexible, so if you’re with another provider, you’ll need to check to see if this feature is available.

5. Consider tax-efficient charitable gifts

If you’re thinking about charitable donations,  there are a few ways to give tax-efficiently in the UK.

• Payroll Giving scheme: You may be able to donate directly from your wages or pension via a Payroll Giving scheme.

This provides immediate tax relief, as your donations come out of your pre-tax wages, reducing the amount of income that is subject to tax.

• Land, property or shares: If you donate land, property or shares to charity, you may get relief on Income Tax and Capital Gains Tax.

There are rules and exemptions to this, so check out the current legislation  for more details.

You can also make donations through the Gift Aid scheme, allowing you to increase the value of your gift by 25% at no extra cost to you. This means that if you donate £100 to a charity with Gift Aid, the charity could claim an extra £25 from HMRC. Some donations don’t qualify, so check this before using the scheme.

While this mainly benefits the charity, if you pay higher (40%) or additional (45%) rates of tax, you can claim the difference between your highest tax rate and the basic rate (20%) on the gross donation amount.

If you’re interested in making tax-efficient charitable gifts before the tax year-end, our specialist advisers are happy to talk you through your options. Don’t hesitate to get in touch for more information.

How True Potential can help you with your tax

Tax year-end planning doesn’t have to be left until the last minute. By taking a proactive approach ahead of time, you can make adjustments that optimise your finances and ensure your money is working as hard as it can for you.

Our financial advisers can offer bespoke tax advice, ensuring you’re investing your money efficiently and making the most of your allowances. Contact us today to find out more about our tax planning services.

With investing, your capital is at risk. Investments can fluctuate in value and you may get back less than you invest. This material is not a personal recommendation or financial advice and the investments referred to may not be suitable for all investors.

Tax is subject to an individual’s personal circumstances and tax rules can change at any time.

ISA eligibility and tax rules apply.

You should ensure your contribution does not result in your total ISA contribution within the tax year exceeding £20,000.

Pension eligibility and tax rules apply.

You should ensure your contribution does not result in your total Pension contribution within the tax year exceeding £60,000 or 100% of your earnings, whichever is lower.

True Potential Wealth Management is authorised and regulated by the Financial Conduct Authority. FRN 529810. Registered in England and Wales as a Limited Liability Partnership No. OC356611.

True Potential Investments LLP is authorised and regulated by the Financial Conduct Authority. FRN 527444. Registered in England and Wales as a Limited Liability Partnership No. OC356027.

True Potential LLP is registered in England and Wales as a Limited Liability Partnership No. OC380771.