Make the Most of the End of the Tax Year: Last Minute Tips for the 5th April 2027

Have you been working hard all year, but worried about your finances and tax year end?

Don't panic - we've got you covered with our essential last minute tips for the 5th April 2027. From dividend tax to pensions and ISAs, these tips will help you make the most out of the end of the tax year.

Organise your paperwork to ensure you have all the information you need to complete your tax return. Calculate your figures using the right tools and make sure you're taking advantage of any deductions or credits you may be eligible for. Don't forget to submit your return before the deadline to avoid penalties.

Take advantage of the £20,000 ISA limit and make sure to use up any unused allowances. For pensions, consider increasing your contributions before the end of the tax year, but be aware of the maximum cap if your income is higher than average.

Remember to also check for free money from the government and reduce your capital gains tax by cashing in any gains up to the annual limit. Finally, if you have kids or grandkids, open up a Junior ISA and Junior SIPP for them to give them a great start in retirement.

Follow these tips and you'll be able to get everything done for the end of the tax year in no time.

Tip 1 - Watch that income

Anyone earning more than £100,000 per year begins to lose their tax-free personal allowance (£12,570, currently frozen) at a rate of £1 for every additional £2 they earn. This results in a remarkably high effective tax rate of 60% on this income for you. You can reduce your income back down below this threshold and avoid paying the additional tax by investing money in pensions.

Not just this, but higher earnings could see you losing some of your child benefit, and earnings above £100,000 losing tax-free childcare, plus many more. A contribution to a pension could benefit you in the present, not just in the future.

Tip 2 - Pensions and ISA’s

Everyone receives a £20,000 yearly ISA limit, so be sure to use it as much as you can because you cannot roll over any unused allowances to subsequent years. If you don't use it, you lose it.

Use it or lose it.

Looking at pensions, many people are permitted to contribute a generous amount each year to their pensions, up to the annual allowance set by the Government (or 100% of relevant earnings if this is lower. If you have no relevant earnings, you are limited to £3,600 gross per year), so determine if you want to increase your contributions this year and make the change before the end of the tax year. This limit is not as strict as the ISA allowance, as unused allowances can be carried over for up to three years, but it's still something to think about. Just be aware that there will be a restricted yearly pension limit for anyone with a very high income or who has already begun to take taxable income from their pension.

Tip 3 - Capital gains and new allowances

Capital gains tax will be applied to any investment gains that are held outside of an ISA or pension. For the 2026/27 tax year, investors are exempt from paying tax on gains up to the annual exempt amount of £3,000. Gains beyond that threshold are subject to tax at rates that depend on your income tax band. Gains on residential property above the allowance are taxed at 18% for basic rate taxpayers and 24% for higher rate taxpayers.

The annual exempt amount has fallen sharply in recent years, from £12,300 a few years ago down to just £3,000 today. Considering this, it's even more crucial to decide if it's worthwhile to cash in any gains this year, up to the annual limit, in order to avoid paying tax on them in the future.

Tip 4 - Look after your investments

The amount you can make before paying dividend tax has also been cut sharply in recent years and now stands at just £500 per year. This means dividend tax affects far more people than before.

As a result, it is now more economical than ever to place any income-producing investments inside of an ISA to shield them from taxes.

Tip 5 - Check for free money

Make sure you're taking advantage of any government tax incentives for which you qualify, such as the marriage allowance or tax-free childcare, which provides a 20% boost to funds used for childcare. It is important to get every bit of free money possible!

Tip 6 - The kids can help

Many parents have good intentions but never actually get around to opening savings accounts for their kids. However, you should use up some of their Junior ISA allowance for this year if you wish to contribute money to an ISA for them before you lose it. You can contribute up to £9,000 annually to a Junior ISA for each child in the 2026/27 tax year. When they turn 18, the money immediately converts into a regular ISA and transfers into their name, giving them full access. Until then, they won't be able to access the funds.

Opening a Junior SIPP for your child or grandchild is another choice (I have recently opened one of these for each of my children). Each year, you may contribute up to £2,880; however, government tax assistance automatically increases that to £3,600. This is a long-term strategy because your child won't be able to access the money until they are at least 57, possibly later, if the government raises the eligibility age. However, what a booster start to retirement they will get!

To conclude...

Now that you have all the information, it's time to get started and make the most out of the end of the tax year! Get organised, calculate all your figures and remember to benefit from any free money you may be eligible for. Most importantly, use up all your allowances before the 5th April 2027 - you don't want to miss out on anything!