5 smart moves to make before 5 April

The end of the tax year has a habit of creeping up on you. One minute you’re thinking “I’ll sort my finances out later,” and the next minute, the deadline - midnight on 5 April - has arrived.

The good news is that a few small steps now can make a real difference to your financial future. And the even better news? It doesn’t need to be overly complicated.

So, whether you’ve been meaning to get around to these tasks but haven’t quite ticked them off your to-do list, or you just need a gentle reminder, here are five smart moves worth considering before your valuable tax-efficient allowances reset.

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1. Use your ISA allowance while you can

This tax year’s £20,000 ISA allowance doesn’t roll over. If you don’t use it before 5 April, you lose it.

You don’t have to invest every penny of the allowance - even using part of it helps protect more of your money from tax. And if you’re not sure what to invest in yet, you can put cash into your ISA now and decide later. That way, you secure the allowance without rushing into investment decisions.

It’s also worth being aware that from April 2027, the government has proposed a £12,000 limit on how much cash can be held in cash ISAs for most people (under 65), while the overall ISA allowance stays put at £20,000. But for now, at least, you can still use your full £20,000 Stocks and Shares ISA allowance by holding cash-like funds in your Stocks and Shares ISA - as they’re investment products (not deposits). Whether that’s right for you depends on your goals and time horizon.

• Open a Stocks and Shares ISA
• Read more on ISA allowances

2. Boost your pension to get tax relief

Topping up your pension is a simple way to grow your long-term savings - and the government helps you do it.

If you’re a basic-rate taxpayer, every £100 you contribute costs you just £80 after tax relief. For higher and additional-rate taxpayers, the tax-relief impact is even greater.

It’s a straightforward way to support your future self while getting valuable tax benefits now.

• Open a Self-Invested Personal Pension

3. Reduce the risk of moving into a higher tax band with salary and bonus sacrifice

A pay rise or bonus can push you into a higher tax band - and if your income goes above £100,000, your personal allowance tapers away, meaning you can lose up to £1 of allowance for every £2 above that threshold.

One way to manage this is by sacrificing salary or bonus into your workplace pension. That reduces your taxable income while strengthening your retirement savings.

Again, changes to salary sacrifice have been discussed. From April 2029, the government has indicated it may introduce new rules that restrict the use of salary sacrifice for certain non-pension benefits. That said, pension contributions remain one of the most tax-efficient uses of salary or bonus sacrifice, but the broader changes highlight why it’s worth reviewing your arrangements sooner rather than later. Making the most of the current system while it’s available could help keep more of your income working for your future.

• Read more on salary and bonus sacrifice

4. Give your money more time in the market

Many people wait for the ‘perfect’ moment to invest. The simple truth is it’s time in the market that matters - not trying to time the market.

Putting money to work before the tax year deadline gives it a head start. The sooner it’s invested, the more days it has to potentially grow.

Even better if you then do the same once the new tax year starts on 6 April - as you’re   letting time work in your favour.

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5. Think about increasing regular payments or pension contributions

If inflation has eased or you’ve had a pay rise, now’s a good moment to revisit your regular savings set-up.

Increasing regular payments - whether into an ISA or your pension - by even a small amount can make a big difference over time. Regular investing smooths out market ups and downs and builds good habits.

Even a modest increase of £20 to £50 a month into an ISA can substantially grow your pot over several years. And upping your workplace pension contributions helps secure tax relief right away while boosting long-term savings.

If this is something you’re thinking about, check out our latest cashback offer. We’ll give you £300 to £3,000 when you deposit a lump sum and/or apply to transfer into our ISA or SIPP by 5 April ’26. Minimum value, exclusions, T&Cs apply.

• See our latest cashback offer

Don’t put off until tomorrow what you can do today

It’s an old saying, but a good one. The idea that small steps now can save you stress later is especially true when it comes to sorting out your finances. You don’t need to change everything at once - one simple action today puts you in a better position than yesterday.

If you’ve been thinking you’ll sort it out later, consider this a motivational nudge. And if you’re learning as you go and looking to build your confidence, I hope this gives you the boost you need to take the next step.

Got a burning question you want to ask? Why not drop us a line. Click here to ask your question.

Important information - investors should note that the views expressed may no longer be current and may have already been acted upon. This information is not a personal recommendation for any particular investment. Eligibility to invest in an ISA and tax treatment depends on personal circumstances and all tax rules may change in the future. Withdrawals from a pension product will not be possible until you reach age 55 (57 from 2028). If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice.