New‑Year Resolutions for Your Taxes (and Why They’re a Good Idea)
Our friends over at Blick Rothenberg have a fresh take on holiday resolutions: take a minute to think about how you’ll tackle your taxes in 2025, and you’ll save both cash and headaches.
Why the Tax Side of Your Health Matters
Robert Salter, Director of the firm reminds us that just as you care for your body after a Christmas feast, you should care for your finances. Ignoring tax paperwork can lead to unnecessary stress—and even fines from HMRC.
1. Finish Your 2023/24 Tax Return
- Deadline: 31 January 2025.
- Pro tip: Push yourself to complete it sooner. The quicker you file, the less chance you have of facing a late‑submission penalty.
2. Claim Untapped Tax Relief
Got a tax break you missed in the past? Now’s the moment to claim it. If you’re a higher‑rate taxpayer (40 % or 45 %) and have made charitable gifts, you can:
- File a return to get additional rate tax relief for Gift Aid contributions.
- Bring forward these claims if you paid Gift Aid in the 2024/25 year before filing.
3. Rethink Bonus Payouts and Pensions
2025 bonus season often lands in February or March. Instead of receiving cash, consider channelling the bonus into your pension scheme as an employer contribution. It’s a win‑win: you boost your future and lower your taxable income.
4. Make the Most of the National Insurance Easement
There’s a National Insurance Contribution (NIC) easement that lets you pay voluntary contributions dating back to the 2006/07 tax year. Apply by 5 April 2025 to maximize your state pension entitlement.
5. Size Up Your Investments Smartly
If you’re married, who owns the investments can make a difference. Let the non‑working spouse hold them—this way you can use that person’s personal tax allowance to its fullest.
6. Stay on Top of Your Tax Code
Check the PAYE Notice of Coding for 2025/26 and make sure it reflects:
- Pension contributions
- Professional subscriptions
- Benefits‑in‑kind
Getting these amounts coded now means you’ll receive tax relief promptly, sparing you the shock of a large liability when the return finally hits the post.
Wrap‑Up
Adopting these billable‑bypass habits isn’t just about avoiding a bad surprise later—it’s about having a smoother, more relaxed 2025. Think of it as giving your wallet a spa day.
