There’s just over a month until the end of the tax year on 5 April, which means now is the time to check whether you’re making full use of the tax allowances available to you.
Many allowances reset on 6 April and if they’re not used, they’re often lost.
A short review now could save you money, increase your pension, or prevent missed opportunities.
Here are some of the key areas worth checking.
1. Check Your National Insurance Record (State Pension)
Your State Pension entitlement depends on your National Insurance (NI) record.
Under current GOV.UK guidance:
- You usually need at least 10 qualifying years to receive any new State Pension
- The number of years required for the full amount depends on your individual record
Took time off to raise children or care for someone?
If you claimed Child Benefit or were a carer:
- Home Responsibilities Protection (HRP) applied between 6 April 1978 and 5 April 2010
- It was replaced by National Insurance credits from 2010
There has been a government exercise correcting missing HRP records, so it’s particularly important to check if you were affected during that period.
Can you fill gaps?
You can normally pay voluntary Class 3 contributions to fill gaps for the last six tax years.
However, paying voluntary contributions isn’t always beneficial; always check your State Pension forecast first.
2. Make the Most of Pension Contributions
Pension contributions remain one of the most tax-efficient planning tools available.
Annual Allowance
For most people, the annual pension allowance is £60,000.
You can receive tax relief on:
- Up to 100% of your relevant UK earnings
- Or up to £3,600 gross if you have no earnings
Carry Forward
If you haven’t used your full allowance in the previous three tax years, you may be able to use carry forward, allowing larger contributions before 5 April.
Higher Earners – Watch the Taper
If:
- Threshold income exceeds £200,000, and
- Adjusted income exceeds £260,000
Your annual allowance may be reduced under the tapered annual allowance rules.
This area requires careful calculation before making large contributions.
Higher Rate Taxpayers
Basic rate (20%) relief is added automatically to most pensions.
If you pay 40% or 45% tax, you usually need to claim the extra relief through your Self-Assessment tax return.
If this hasn’t been done in previous years, you may still be able to correct it.
3. Owner-Managed Businesses: Review Profit Extraction
If you run a limited company, now is the ideal time to review how you extract profits.
Dividends
Dividends can be tax-efficient in the right circumstances, but:
- Your company must have sufficient distributable reserves
- Your overall income position matters
Planned changes to dividend tax rates from April 2026 may affect future planning.
Employer Pension Contributions
Often, it’s more tax-efficient for your company to pay into your pension directly:
- Usually deductible for Corporation Tax
- No Income Tax or National Insurance for you (within limits)
This can be one of the most effective year-end planning tools available.
4. SEIS, EIS and VCT Investments
For those comfortable with higher-risk investments:
SEIS (Seed Enterprise Investment Scheme)
- 50% Income Tax relief
- Strict qualifying conditions
EIS (Enterprise Investment Scheme)
- 30% Income Tax relief
- Up to £1m per year (£2m for knowledge-intensive companies)
VCTs (Venture Capital Trusts)
- 30% Income Tax relief
- Up to £200,000 per tax year
- Minimum holding period applies
These investments carry significant risk and are not suitable for everyone.
Don’t Leave It Until It’s Too Late
After 5 April, many allowances are reset and missed opportunities cannot be recovered.
A quick conversation now could make a meaningful difference to:
- Your tax bill
- Your pension position
- Your company’s extraction strategy
- Your long-term wealth planning
If you’d like a year-end review, we’re happy to help.
Disclaimer
This article is for general information only and is based on HMRC and GOV.UK guidance available at the time of publication. It does not constitute tax, legal or financial advice and should not be relied upon as a substitute for advice tailored to your individual or business circumstances. Tax treatment depends on personal and commercial factors and may change. Before taking (or refraining from) any action, you should obtain professional advice. We accept no liability for actions taken based solely on the information in this publication.