1. Review Your Tax Code

Start by ensuring your tax code is correct. An incorrect code could mean you’re overpaying or underpaying tax. Check your tax code on your payslip or contact HMRC if you think it’s wrong.

2. Maximise Your ISA Allowance

Take advantage of the £20,000 annual Individual Savings Account (ISA) allowance to grow your savings tax-free. Whether you prefer cash ISAs or stocks and shares ISAs, contributing early in the tax year maximises your returns.

3. Contribute to Your Pension

Boost your retirement savings and reduce your taxable income by contributing to your pension. Basic-rate taxpayers receive 20% tax relief on contributions, while higher-rate taxpayers can claim an additional 20-25% through their Self Assessment return.

4. Claim Gift Aid on Charitable Donations

If you’re planning to donate to charity in 2025, ensure you claim Gift Aid. For higher-rate taxpayers, you can also claim additional tax relief on donations, making your generosity go further.

5. Plan for Capital Gains

If you plan to sell investments, property, or other assets, be mindful of the £3,000 annual Capital Gains Tax. Strategically timing sales can help you make the most of this allowance.

6. Use Your Marriage Allowance

If you’re married or in a civil partnership, the Marriage Allowance lets one partner transfer up to £1,260 of their personal allowance to the other. This can save you up to £252 a year in tax.

7. Set Up a Tax-Efficient Business Structure

For self-employed individuals or business owners, consider restructuring your business to optimise tax efficiency. This could include switching to a limited company, using the VAT Flat Rate Scheme, or employing family members.

8. Invest in Tax-Efficient Accounts

Explore tax-efficient investment options such as the Enterprise Investment Scheme (EIS) or Venture Capital Trusts (VCTs). These provide tax reliefs for higher-risk investments and can significantly reduce your tax bill.

9. Making Tax Digital (MTD)

If you’re self-employed or run a small business, ensure you’re compliant with HMRC’s Making Tax Digital initiative. Invest in digital accounting software to streamline your tax reporting and avoid penalties.

10. Seek Professional Advice

Tax rules can be complex and ever-changing. Consulting a tax advisor can help you identify opportunities, avoid pitfalls, and create a personalised strategy to maximise your financial goals in 2025.

At The Tax Faculty, we’re here to help you achieve your financial resolutions. From pension planning to capital gains strategies, our experts can guide you through the intricacies of the UK tax system. Contact us today to start 2025 on the right financial footing.

Happy New Year and happy saving!

As the new year approaches, it’s time to set financial resolutions that put you on track for success in 2025. For uk taxpayers, taking a tax-smart approach to your goals can make a significant difference. Here’s your guide to starting the year right with these effective tax strategies.

Top Tax Tips for 2025

Capital Gains Tax Expertise: The Tax Faculty LLP Managing Partner Charles Tateson Named UK Capital Gains Tax Advisor of the Year 2023

The Finance Monthly Taxation Awards recognises the achievements of tax professionals from around the globe.

Winning such an award is no small feat. It is a reflection of hard work, extensive knowledge, and an ability to navigate the intricacies of the UK tax system.

Read more about Charles and the award here.

Contact Us

Contact us today on freephone 0800 0016 878 for a free consultation on all tax issues, or fill out the handy form below and we'll get back to you as soon as possible.

Alternatively, you can email us at info@thetaxfaculty.co.uk or complete the form below.

(Please note, non-UK callers may need to call 0207 101 3845 if your line cannot connect to our 0800 number)

Feel free to contact us through WhatsApp - we accept calls and messages.

Simply click the WhatsApp button below: