Tax year end planning: what to review before 5th April

As the tax year end on 5th April approaches, many people turn their attention to maximising both pension and ISA funding. For high earners in particular, this period offers an important opportunity to review contributions, make use of available allowances, and avoid costly mistakes.

With limited time remaining, careful planning can help ensure contributions are made efficiently and in line with long-term financial goals. As 5th April falls on Easter weekend this year, Thursday 2nd April will be the Rosebridge team’s last working day before the tax year ends, making early planning particularly important.

 

Making the most of pension and ISA allowances

Each tax year, individuals can normally contribute up to the annual allowance into their pension in a tax-efficient way. For those with higher incomes, this allowance may be reduced, which makes planning even more important.

If previous years’ pension allowances have not been fully used, it may be possible to carry them forward. This can allow significantly larger contributions in a single tax year, provided certain conditions are met. Reviewing contribution history early helps ensure that opportunities are not missed.

A person’s own tax-relievable pension contributions (not employer) are capped at 100% of their earnings (or £3,600 if no earnings) irrespective of how much annual allowance they have available.

In addition to pensions, individuals can also contribute up to £20,000 per tax year into ISAs, which can provide tax-free growth and withdrawals with no HMRC reporting requirements. There is also a Junior ISA (JISA) allowance of £9,000 per tax year, to potentially take advantage of as part of intergenerational planning.

Planning to maximise both pension and ISA allowances before the tax year end can help make the most of available tax-efficient opportunities.

 

Timing matters

Pension and ISA contributions must be received by providers before the end of the tax year to count. Leaving payments until the last moment increases the risk of delays, processing issues, or missed deadlines.

For business owners and company directors, employer pension contributions can offer additional planning opportunities, but these also require careful timing and coordination based around both the company as well as tax year end.

Starting discussions early helps avoid unnecessary pressure and allows time to confirm feasibility. With Thursday 2 April being the last working day before the tax year end, it is important to start arranging contributions now rather than leaving it to the last minute.

 

Common traps to avoid

High earners often face additional complexities.  Common pitfalls include:

• Exceeding reduced pension annual allowances
• Missing pension carry forward opportunities
• Triggering unexpected tax charges
• Failing to consider cash flow needs
• Making contributions too late
• Overlooking ISA contribution limits

Avoiding these issues requires a co-ordinated view of income, tax position, and long-term objectives.

 

Get in touch

If you would like support reviewing your pension and ISA funding before the tax year end, the team at Rosebridge can help you assess your allowances, explore pension carry forward allowances, and confirm suitable contribution levels through a tax year end review.

Ramsbottom office: Email enquiries@rosebridgeltd.com or call 01204 300010
Chester office: Email enquirieschester@rosebridgeltd.com or call 01244 569141
Leeds office: Email enquiriesleeds@rosebridgeltd.com or call 0113 243 7100

 

Please note

The Financial Conduct Authority does not regulate tax advice. This article is for information only and does not constitute advice. A pension is a long-term investment not normally accessible until age 55 (57 from April 2028 unless the plan has a protected pension age). The value of your investments (and any income from them) can go down as well as up which would have an impact on the level of pension benefits available.