27 Apr ISA Season Is Over , But Your Tax Planning Shouldn’t Be
Well, we made it. The madness of the 5th of April has passed, the "ISA Season" emails have stopped clogging up your inbox, and you’ve likely tucked away your allowances for another year. If you managed to hit your ISA limits for the 2025/26 tax year, pat yourself on the back: that’s a win for your future self.
But here’s the thing: while the marketing hype around ISAs tends to vanish once the new tax year starts on April 6th, the actual work of tax planning is just beginning. At Harrison’s Accountancy, we see it every year: the most successful business owners and individuals aren't the ones who scramble in March. They’re the ones who start thinking about their strategy on April 20th (that's today!).
Tax planning shouldn't be a seasonal event like the Boat Race or Wimbledon. It’s a year-round process that, when done right, keeps more of your hard-earned money in your pocket and out of HMRC’s coffers. Now that the dust has settled, let's look at why you should be proactive and what you should be focusing on right now.
Why "Wait and See" is a Expensive Strategy
Are you waiting until next January to think about your taxes? You might be missing out on thousands in savings.
Most people treat tax like a post-mortem. They wait until the year is over, hand a bag of receipts (or a Xero login) to their self-assessment accountant, and ask, "How much do I owe?"
By that point, it’s often too late to change the outcome. You can’t go back in time and make a pension contribution or restructure a dividend payment. Proactive tax planning is forward-looking. It’s about making decisions today that change the result you see next year.
By starting your planning in April and May, you give yourself the greatest gift of all: time. Time to spread out contributions, time to monitor your income levels, and time to react if your business has a bumper year.
The Power of Pensions: More Than Just Retirement
Pensions are arguably the most efficient tax-saving tool in the UK: are you using yours to its full potential?
Now that your ISA is sorted, your pension should be the next port of call. For every £80 you put into a private pension, the government adds £20 in tax relief. If you’re a higher-rate taxpayer, you can claim back even more through your tax return.
But it’s not just about the tax relief on the way in. Pensions are a vital part of year-round planning for a few reasons:
- Beating the "60% Tax Trap": If you earn between £100,000 and £125,140, your personal allowance is tapered away. This creates an effective tax rate of 60%. By making a pension contribution to bring your "adjusted net income" back down below £100k, you effectively get 60% tax relief. That is a massive win, but it requires tracking your income throughout the year.
- Company Contributions: If you’re a director of a limited company, your company can often make pension contributions as a business expense. This reduces your Corporation Tax bill while building your personal wealth. It’s often much more efficient than taking a dividend and then paying into a pension personally.
- Carry Forward: If you haven’t used your full annual allowance from the last three years, you might be able to "carry forward" the unused portions. This is a complex area where a quick chat with us can save a lot of headaches.
Don't wait until March 2027 to see if you have spare cash for a pension. Set up a regular contribution now, and we can adjust it as the year progresses based on your management accounts.
Capital Gains Tax: Use It or Lose It
The CGT allowance has been squeezed in recent years, making it more important than ever to plan your asset sales.
In the "good old days," the Capital Gains Tax (CGT) allowance was quite generous. These days, it’s much tighter. This means that if you’re planning to sell shares, a second home, or even bits of a business, you need a strategy.
If you have assets with significant gains, you might want to consider "crystallising" some of those gains each year to make use of your annual exempt amount. If you don’t use that allowance by April 5th, it’s gone forever. It doesn't roll over.
For those with stocks and shares outside of an ISA, "Bed and ISA" is a classic strategy. You sell the shares (using your CGT allowance) and immediately buy them back inside your new year’s ISA allowance. This moves the assets into a tax-free wrapper for the future. Since we are at the start of the tax year, you have plenty of time to plan these moves without the stress of a looming deadline.
Inheritance Tax and the Art of Gifting
Tax planning isn't just about your income: it's about protecting what you've built for the next generation.
Inheritance Tax (IHT) is often called a "voluntary tax" because there are so many ways to legally mitigate it if you plan ahead. One of the simplest ways is through gifting.
Every year, you have a £3,000 annual gifting exemption. You can give this amount away to whoever you like, and it leaves your estate immediately for IHT purposes. If you didn’t use last year’s exemption, you can carry it forward for one year: but that’s it.
Beyond the £3,000, you can also make "regular gifts out of surplus income." This is a fantastic rule that allows you to give away larger sums of money IHT-free, provided it comes from your regular income and doesn't affect your standard of living. The catch? You need to keep meticulous records. This is where staying on top of your bookkeeping and personal finances year-round becomes essential.
Business Owners: Salary vs. Dividends in 2026
If you run your own limited company, your remuneration strategy needs a refresh every single year.
The landscape for directors is always changing. Between changes to National Insurance, Dividend Tax rates, and Corporation Tax bands, the "perfect" split between salary and dividends shifts.
By looking at this in April, we can set a strategy for the year that balances:
- Paying enough salary to earn a qualifying year for your State Pension.
- Minimising National Insurance contributions.
- Keeping your total income within the basic rate band (if that’s the goal).
- Planning for Corporation Tax payments so they don't catch you by surprise.
If your business is growing, you might also want to look at company formation services for new ventures or restructuring to ensure you’re operating in the most tax-efficient way possible.
The "Small Wins" Add Up
Don't ignore the minor tax breaks; they can save you hundreds when combined.
Year-round planning also means catching the smaller stuff that often gets forgotten:
- Marriage Allowance: If your spouse earns less than the personal allowance, they can transfer a portion of it to you, saving up to £252 a year.
- Trivial Benefits: As a director, you can give yourself (and other employees) "trivial benefits" like a £50 gift card for a birthday or Christmas, tax-free, up to £300 a year.
- Professional Fees: Ensure you are claiming for any professional subscriptions or magazines that are relevant to your job.
- Charitable Gifting: If you’re a higher-rate taxpayer, Gift Aid is your friend. You get extra tax relief on your donations, but you need to keep a record of what you’ve given.
How Harrison’s Accountancy Can Help
We’re not just here for the year-end; we’re here for the journey.
At the end of the day, tax planning is about peace of mind. It’s about knowing that you aren't paying a penny more than you legally have to, and that you have a plan in place for the future.
As a Director/Accountant, I (Dan) and the rest of the team at Harrison’s Accountancy love getting stuck into the "proactive" side of things. We’d much rather have a coffee with you in May to discuss your goals than a panicked phone call in March.
Whether you need help with annual accounts, VAT returns, or a full-scale personal tax review, we’re here to help.
Ready to get ahead of the game?
Don't wait for the 2027 ISA deadline to start thinking about your finances. Let's look at your 2026/27 strategy now. Drop us a message or give us a call: we’re a friendly bunch, and we promise to keep the jargon to a minimum.
Contact Harrison’s Accountancy today and let's make this your most tax-efficient year yet.
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