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The start of a new tax year is one of the best moments to pause, take stock, and make sure your finances are still working as hard as possible for you.
In the latest Retire Well podcast episode, Matthew and Joe explore what hasn’t changed as much as what has — and why that still matters. With allowances largely frozen, tax efficiency is more about good planning than reacting to last‑minute surprises.
Here’s a practical breakdown of the key points to consider as we move into the new tax year.
Despite rumours ahead of the Spring Statement, there were no major pension or ISA shake‑ups announced. Notably:
Most income tax thresholds remain frozen, which effectively acts as a stealth tax as wages, pensions, and interest creep upward.
Key income thresholds to remember:
If you’re approaching or already in retirement, aiming to take at least £12,570 of taxable income (for example from a pension) can make sense. Any additional income can often be taken from:
This kind of coordination can significantly reduce the tax you pay.
If your income exceeds £100,000, you begin losing £1 of personal allowance for every £2 earned above that level. This creates an effective 60% tax rate between £100,000 and £125,140.
A powerful planning tool here is pension contributions:
For many people, pension funding isn’t just about retirement — it’s about avoiding unnecessary tax right now.
One common mistake is waiting until March and then trying to make a large pension contribution in one go.
Spreading contributions monthly across the year has benefits:
Salary sacrifice arrangements can be especially valuable this tax year, even more so if your employer shares their National Insurance savings with you.
With higher interest rates, more savers are now exceeding their Personal Savings Allowance:
Banks now report interest directly to HMRC, which means your tax code may include “untaxed interest” adjustments.
It’s well worth reviewing your tax code at the start of the year to make sure it reflects reality — especially if you’ve had large cash balances temporarily.
Allowances remain low:
This doesn’t limit investment options, but it does reinforce the importance of tax wrappers:
Using your ISA allowance early in the tax year is often sensible — it’s strictly use it or lose it.
A new tax year is also a good time to review estate planning:
Good records are essential, especially as many of these exemptions are assessed only when your estate is settled.
The full State Pension has increased to just under £11,973 per year.
That means it’s edging close to — and in some cases exceeding — the personal allowance. If the State Pension is your only income, it’s paid gross, but you may still need to complete a tax return once it exceeds the allowance.
If you draw income flexibly from other sources, this increase may mean it’s time to adjust what you take elsewhere.
The biggest takeaway from the discussion is simple:
Good tax planning isn’t about last‑minute decisions — it’s about forward thinking.
At the start of the tax year:
That way, you’re not scrambling next March — and you’re far more likely to keep more of what you earn.
If you want a better view of what your future could be, we'll have a chat and work out if we make a good fit for you and your financial picture.
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