According to leading audit, tax and business advisory firm Blick Rothenberg, taxpayers can save both money and headaches in 2025 by committing to better tax practices in the coming year.
Robert Salter, director at the company, notes: “Most people make personal resolutions about health and lifestyle, but your financial health is just as important – and staying on top of your taxes plays an important role.”
With the 2023/24 tax return deadline set for January 31, 2025, Salter suggests anyone who has yet to complete their filing should decide to do so earlier this year. “It will help you avoid stress and the risk of an HMRC fine,” he says.
He also points out that taxpayers can overlook valuable exemptions, especially if they pay taxes at 40 or 45 percent. Donation Assistance contributions can provide immediate savings when claimed on a self-assessment tax return, and contributions made during the 2024/25 tax year can still be brought forward for relief in the previous year if completed before filing .
According to Salter, retirement planning can also be a powerful New Year’s promise. Bonuses paid in February or March could be paid into a pension scheme through an employer contribution rather than withdrawn as cash, potentially reducing the overall tax burden.
For those looking to maximize their state pension, Salter is highlighting an easement for National Insurance Contributions (NICs) that will remain available until April 5, 2025. This will allow people to fill any gaps dating back to 2006/2007 and boost future pension payments.
Another solution could be to review how investments are held, especially for couples where one spouse is a non-taxpayer or a lower-rate taxpayer. By legally transferring assets to the taxpayer at a lower rate, personal allowances can be maximized and potentially reduce the overall tax burden.
Finally, Salter recommends checking your PAYE tax code for 2025/26 to ensure any pension contributions, professional subscriptions or in-kind benefits are accurately reflected: “That way you get the right tax relief straight away and avoid a shock bill will be submitted upon your return.”