As the end of the tax year approaches on 5 April, many people start thinking about whether they have fully used their pension and ISA allowances.
If you are planning to make contributions before the deadline, it’s worth acting sooner rather than later this year. With Easter falling right at the end of the tax year, there may be earlier processing cut-off dates from banks, investment platforms and providers.
Why timing matters
Although the official deadline for most tax year-end contributions is 5 April, contributions often need to be received and processed before that date.
In practice, this means that waiting until the final few days can sometimes be risky. Bank holidays, provider processing times and platform deadlines can all affect whether a contribution counts for the current tax year.
This year, with the Easter bank holiday weekend coinciding with tax year-end, some providers may require contributions to be arranged before the end of March to guarantee they are processed in time.
Key allowances to consider
Before the tax year ends, it can be worth checking whether you want to make use of any remaining allowances.
ISA allowance
You can contribute up to £20,000 per tax year across your ISAs. Any unused allowance is lost once the tax year ends.
Pension contributions
It may be possible to contribute up to £60,000 per tax year to pensions (subject to relevant earnings and other limits), potentially benefiting from tax relief on contributions.
Junior ISAs
Parents and grandparents can contribute up to £9,000 per tax year into a Junior ISA for a child.
Using these allowances can be an effective way to build long-term wealth while benefiting from tax-efficient investment structures.
Avoid the last-minute rush
Each year we see many people leave tax year-end planning until the final days. While contributions can sometimes still be arranged late in the tax year, leaving it too late increases the risk of missing provider deadlines.
If you are considering making pension or ISA contributions before 5 April, it may be sensible to arrange them well before the deadline, particularly this year.
Need help reviewing your allowances?
Tax year-end can be a good opportunity to review your financial plan and ensure you are making the most of available allowances.
If you would like help reviewing your ISA or pension contributions before the end of the tax year, please feel free to get in touch with the team at Tailored Financial Planning.