30 Mar Don’t Leave Money on the Table: Your Final 5-Day Tax Year Checklist
It’s Friday, 27th March. If you listen closely, you can almost hear the ticking of the HMRC clock. We have exactly five days until the 2025/26 tax year wraps up at midnight on Sunday, 5th April.
I know, I know. You’ve had a busy quarter, and the last thing you want to think about while heading into the weekend is tax. But here’s the thing: the UK tax system is full of "use it or lose it" opportunities. If you don't take action by Sunday night, some of these allowances vanish forever, and you could effectively be handing "free" money back to the government.
At Harrison's Accountancy, we hate seeing clients miss out on easy wins. So, grab a coffee, take ten minutes to read through this, and let’s make sure your finances are in the best possible shape before Monday morning arrives.
1. The ISA Allowance: Your £20,000 Tax-Free Shield
Are you making the most of your £20,000 annual ISA limit before it resets?
The Individual Savings Account (ISA) is arguably one of the best gifts the taxman gives us. You can squirrel away up to £20,000 every tax year, and any interest, dividends, or capital gains earned inside that "wrapper" are completely tax-free.
The catch? You cannot carry this allowance over. If you only put in £5,000 this year, you don’t get a £35,000 limit next year. You simply lose that £15,000 of tax-free capacity forever.
If you have spare cash sitting in a standard savings account (where you might be paying tax on the interest) or even just gathering dust in a current account, moving it into an ISA before Sunday is a no-brainer. Whether it’s a Cash ISA, a Stocks and Shares ISA, or an Innovative Finance ISA, the goal is to get that money behind the tax-free shield.
For those with children, don't forget the Junior ISA (JISA) limit, which is currently £9,000 per child. It’s a fantastic way to build a nest egg for them without HMRC taking a slice of the growth.
2. Pension Contributions: The Ultimate Tax-Back Hack
Have you checked if you can reduce your tax bill by topping up your pension?
If you are a higher-rate or additional-rate taxpayer, contributing to your pension is one of the most efficient ways to "claw back" money from HMRC. When you contribute to a private pension, the government adds basic rate tax relief (20%) automatically. If you’re in the 40% or 45% bracket, you can usually claim the extra 20% or 25% back through your self-assessment tax return.
Think of it this way: for a higher-rate taxpayer to put £100 into their pension, it effectively only "costs" them £60 after tax relief.
For business owners operating through a limited company, making a direct employer contribution from your company into your pension is often even better. These are typically treated as an allowable business expense, which means you save on Corporation Tax while building your personal wealth.
With the annual allowance generally set at £60,000 (though this can be tapered for very high earners), there is plenty of room to make a significant impact on your tax position before the weekend is out. If you’re unsure how much you’ve contributed this year, now is the time to log into your pension portal and check.
3. Capital Gains Tax (CGT): The "Use It or Lose It" Exemption
Are you sitting on investments that have increased in value?
Capital Gains Tax is what you pay when you sell an asset (like shares or a second home) that has increased in value. For the 2025/26 tax year, every individual has a CGT annual exempt amount of £3,000.
Just like the ISA allowance, this is a "use it or lose it" deal. If you don't realise a gain of at least £3,000 this year, you lose that tax-free threshold.
If you have a portfolio of shares outside of an ISA, you might consider selling enough of them to "crystallise" a £3,000 gain. You can then reinvest that money (though be careful of the "30-day rule" regarding buying back the same shares: speak to us if you're unsure). This effectively "steps up" the cost base of your investments for free, meaning less tax to pay when you eventually do a full sell-off in the future.
Remember, if you are married or in a civil partnership, you can often transfer assets between yourselves to utilise both of your £3,000 exemptions, essentially allowing you to realise £6,000 in gains tax-free.
4. The Dividend Allowance: Don't Ignore the £500 Limit
Have you drawn your final dividends for the year?
For many of our limited company clients in Biggleswade and beyond, dividends are a key part of how they pay themselves. Currently, the dividend tax-free allowance is just £500. It’s not a huge amount: certainly not what it used to be: but it’s still £500 that you can take out of your company without paying a penny in personal tax on it.
If you haven't taken at least £500 in dividends this tax year, you are leaving money on the table. Even if you don’t strictly "need" the cash right this second, it often makes sense to declare the dividend now to make use of that allowance before it resets on Monday.
Beyond the £500, we also need to look at your overall tax brackets. If you are close to the threshold for higher-rate tax, we might want to "fill up" your basic rate band with dividends now, rather than waiting until next year when your income might be higher.
5. Strategic Salary vs. Dividend Balance
Is your director’s salary set at the most tax-efficient level?
As we approach the end of the year, we often perform a quick "health check" on director remuneration. Are you taking enough salary to ensure you get a qualifying year for your State Pension? Are you taking enough to be tax-efficient without triggering unnecessary National Insurance?
If you've had a bumper year in the business, you might be tempted to take a large bonus or dividend right now. However, it’s worth looking at what your income might look like next year. If next year looks like it might be quieter, it could be better to wait and take the income on Monday (the new tax year) to stay within a lower tax bracket.
This kind of advisory work is where a good accountant pays for themselves. It’s about looking at the big picture, not just filing forms.
6. The "Weekend To-Do" List
So, what should you actually do between now and Sunday night? Here is your 5-step action plan:
- Check your ISA: Log into your banking app. If you have spare cash and haven't hit your £20k limit, consider a transfer.
- Contact your Pension Provider: See what your total contributions for the year are. If you have the headroom and the cash, consider a top-up.
- Review your Shares: Look at your "General Investment Account" (non-ISA). Are there gains you can realise to use your £3,000 CGT allowance?
- Log into Xero: If you’re a business owner, make sure your bookkeeping is up to date so you know exactly where your profit stands. This makes the dividend decision much easier.
- Talk to Dan, Kenny or our team: If you are unsure about any of the above, drop us an email or give us a call. We’re here to help you navigate these final few days.
Looking Ahead: The Monday Morning Shift
While we are focusing on the deadline this Sunday, don't forget that Monday, 6th April 2026, isn't just a fresh start: it’s the beginning of a new era for many.
As we've mentioned before, the Making Tax Digital (MTD) for Income Tax rules kick in on Monday for sole traders and landlords with income over £50,000. If that’s you, the "shoebox" method of accounting officially becomes a thing of the past. You'll need to keep digital records and use compatible software like Xero.
Getting your 2025/26 year wrapped up neatly this weekend means you can start the new MTD era with a clean slate and a clear head.
Need a Last-Minute Hand?
Tax year-end doesn't have to be a source of panic. It’s simply a deadline that, with a little bit of planning, can be turned into a financial win. Whether you are looking for accountancy updates or specific advice on your personal tax position, we’ve got your back.
Don't leave your hard-earned money on the table. Use these final five days wisely!
If you need a hand with your year-end planning or want to make sure you're ready for the changes coming on Monday, get in touch with the team at Harrison's Accountancy today.
Let’s get this tax year finished on a high!
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