Make tax-informed New Year’s resolutions to reduce stress and save money
Taxpayers stand to save both money and headaches in 2025 by committing to better tax practices next year, according to leading audit, tax and business advisory firm Blick Rothenberg.
Robert Salter, a Director at the firm, comments: “Many people make personal decisions about health and lifestyle, but your financial health is just as important—and being on top of your taxes plays an important part.”
With the 2023/24 tax return deadline set for 31 January 2025, Salter suggests that anyone who hasn’t completed their submission should decide to do so early this year. “It will help you avoid the stress and risk of HMRC penalties,” he says.
He also points out that taxpayers may miss out on important benefits, especially if they pay 40 or 45 percent tax. Gift Aid donations can bring immediate savings if claimed on a self-assessment tax return, and those made in the 2024/25 tax year can still be brought forward for relief in the previous year if completed before filing.
According to Salter, retirement planning can also be a powerful new year’s resolution. Bonuses paid in February or March may be directed to a pension scheme through an employer contribution rather than being treated as cash, potentially reducing the overall tax bill.
For those looking to increase their state pension, Salter highlights the relaxation of National Insurance Contributions (NICs) which remains available until 5 April 2025. This allows people to cover any gaps from 2006/07 and may increase pension payments in the future.
Another decision would be to review how investments are made, especially for couples where one spouse is a taxpayer or a low taxpayer. Legally transferring assets to a low-income taxpayer can make full use of personal allowances and can reduce the overall tax burden.
Salter finally advises that you check your PAYE tax code for 2025/26 to ensure that any pension contributions, professional registration or benefits-in-kind are correctly reflected: included.”
