It feels good to turn to a fresh financial page at the start of a new tax year. Although, with a blank slate, it can sometimes be hard to know where to get started.
That’s why we’ve put together a guide on how you can get ahead in the new tax year, helping you make the most of your finances in 2025-2026 — and beyond.
- Review your finances (ISAs and pensions)
- Use your ISA allowance early
- Review and top up your pension contributions
- Diversify your portfolio
- Review your children’s Junior ISA(s)
- Final thoughts
Review your finances (ISAs and pensions)
Before making any decisions about what you want to do in the new tax year, it’s probably a good idea to review your financial performance from the previous one.
You can do this by asking yourself the following questions:
Did I max out my ISA or pension allowance?
Traditional savings accounts are great. But if you’ve already got healthy emergency and sinking funds, are you missing out on tax-efficient opportunities by not contributing more to your ISAs or pensions instead?
Did my financial portfolio perform as expected?
It’s probably not a good idea to judge investment-based performance over one tax year. However, if you have noticed a long-term pattern of poor performance, you might want to think about changing your approach, style, or provider.
Am I using a provider that’s right for me?
Having the right provider isn’t just about performance, however. Have you spotted another provider with better fees, for example? Or perhaps one that’s easier to use, with a much more hands-on, human approach to customer service? Regardless, choose what really matters to you — then make a decision about your provider accordingly.
Do I have the right type of ISA or pension for my circumstances?
Let’s say you’ve got a Cash ISA that pays a fixed interest rate. Even though you know exactly how much you're going to earn every year, you want to get more from your money (don’t we all?). So, is the new tax year the right time to explore investing, opting for a Stocks and Shares ISA instead? After all, if you’re comfortable with the fact that the value of your money can go down as well as up – and you could get back less than invested – then maybe a change of direction is right for your circumstances. Once you’ve got the answers to those questions, you can use that information as the basis for your new tax year strategy.
Use your ISA allowance early
The 2025-2026 tax year is already underway — but the ISA allowance will once again be set at £20,000. That’s because, according to the government’s autumn 2024 budget, this allowance is set to remain frozen until 2030. [1] Using your ISA allowance early could be good for a number of reasons. If you’re not already familiar with the options, there are a range of ISAs you can choose from; for example, Wealthify offer a Cash ISA and Stocks and Shares ISA.
Figuring out what’s best for you will depend on your circumstances.
A Cash ISA can be a great way to save money while accumulating tax-free interest. However, you might not make the same long-term gains as you would with a Stocks and Shares ISA (aka Investment ISA).
Why?
Well, because inflation rises over time, making things more expensive.
And, for ‘true’ financial growth, you need your funds to at least increase in line with inflation. Which is why, in real terms, your savings might be worth less if inflation is higher than the interest rate you're currently getting.
That’s why some people opt for an Investment ISA, where returns are dependent on stock market performance, not interest rates. As a result, you could earn more than you would through interest alone — especially in the long-term.
With your money invested, however, it’s important to understand that you could get back less than you initially put in due to stock market fluctuations.
Whether in a single account or spread across multiple ISAs, the maximum you can save across the tax year in an ISA is £20,000.
For Cash ISAs and Stocks and Shares ISAs, you can save up to £20,000 if it’s spread across both accounts.
With a Lifetime ISA, you can only save up to £4,000 a year (and still have £16,000 remaining to save elsewhere in other tax wrappers).
Making use of your ISA allowance helps you:
- Avoid missing out on using your full allowance further down the line.
- Boost your returns through compounding.
Compounding is when the money you earn from investing starts earning money too. Over time, you earn returns not just on your original investments, but also on the returns you've already made. This causes a positive snowball effect that grows faster the longer you invest.
It’s also worth keeping an eye on the news for any possible announcements from the government, as this might change how you manage your finances.
Review and top up your pension contributions
Whether it’s to go alongside or in addition to your workplace pension, opting for a personal pension can help you work towards the retirement you want.
One of the main benefits of a personal pension is that you’ll receive tax relief from the government, meaning an automatic 25% top-up on any personal contributions. When you open a SIPP with Wealthify, you must tick the box to say you are eligible for the 25% tax top-up, which we’ll then add automatically.
For 2025-2026, you can contribute up to £60,000 into your pension without paying income tax. Topping up your pension early on during the tax year can provide a chance for you to get ahead and compound returns.
The new tax year is also a good time to review your pensions. After all, if you've had multiple jobs, you may have a few pots that you and your employer have paid into.
If you do have several old pension pots floating around from previous jobs, you could consider consolidating them into one place under a single scheme. This will make it easier to manage them and keep track of how much you have tucked away for your retirement.
And, again, you could pay less in fees by choosing the provider with the lowest charges.
Diversify your portfolio
Diversification means spreading the balance and risk of your investments, by placing the money across a range of assets. This way, if one investment drops in value, it can be offset by your investments in other areas.
When a new tax year begins, it makes sense to review your portfolio, making sure:
- It’s performing as you’d hoped.
- Your investments align with both your goals and values.
If you’re using a provider to manage your investments, you should also consider looking at their fees and performance. From there, you can decide whether you want to stick with what you have or look at other providers that might suit you better.
Review your children’s Junior ISA(s)
Planning for tax year 2025 doesn’t mean considering just your money, but your children’s money, too.
If you’ve already been saving for their future, the start of the financial year is a good time to make sure you’re doing so in the best, most pragmatic way.
For example, are you happy with the interest or returns on the money you’ve been putting away? If not, you might want to consider a Junior Stocks and Shares ISA.
Like an adult ISA, you won't have to pay tax on any gains this money makes, but your child's ISA allowance is different. For the 2025/26 tax year, you can pay in up to £9,000 per year (and this doesn’t impact your personal ISA allowance).
If you already have a Junior ISA for your child or children, then it could still be worth looking into their performance to make sure your current provider’s right for you.
With Junior ISAs, everything you pay in belongs to your child; nobody can dip into their pot, and your child won't be able to withdraw from it until they're 18. If you choose a Wealthify Junior Stocks and Shares ISA, your friends and family can pay in, too.
Plan for the 2025/26 tax year
Now, with a full and comprehensive understanding of your different financial assets and goals, it’s time to plan properly for the tax year ahead. Make sure to consider:
- What your investment and saving goals are for the year ahead.
- How regularly you’ll review your progress throughout the year.
- Setting up regular payments (such as direct debits) into your savings or investment accounts, so you can build your wealth automatically.
- Key financial dates throughout the year that are relevant to you.
- Changes or updates in the news that might impact your financial planning.
Final thoughts
Being proactive – rather than reactive – is an effective way of keeping your head when weathering financial highs and lows.
As with so much in life, organisation and consistency are key to reaching our goals.
Leaving everything to the last minute rarely creates the results we want — so, start early to make the most of the year ahead.
If you’re looking to start early with Wealthify, why not check out our Stocks and Shares ISA and personal pension pages!
Wealthify does not provide financial advice. Please seek financial advice if you are unsure about investing.
The tax treatment depends on your individual circumstances and may be subject to change in the future.
Please remember the value of your investments can go down as well as up, and you could get back less than invested.
