Clare Stinton, a senior personal finance analyst, and Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, offer their expertise.

Did you find yourself in a last-minute rush to sort out your tax planning as March drew to a close?

Or even worse, did April 6th catch you off guard, leaving you wishing you had taken advantage of your ISA and pension allowances in time?

The silver lining is that with the start of a new tax year, you have a fresh opportunity. Your allowances have been reset, making now the ideal moment to ensure your finances are optimized for the 2026/27 tax year.

Getting a head start doesn’t just alleviate stress; it also positions you advantageously, allowing your savings and investments more time to flourish.

Here are 10 strategies to kick-start your financial year effectively—and potentially reduce your tax obligations in the process.

1. Time for a budget check-in

Take a fresh look at what’s coming in and going out each month. This can lead to more intentional spending – on the things you enjoy – instead of wondering where your money went.

It’s an opportunity to identify areas where you could cut back and then redirect money to fund your financial goals, or spot where you need to allocate a bit more, such as your council tax this year.

Without regular check-ins it’s easy to fall victim to ‘lifestyle creep’ where spending quietly rises alongside income.

2. Get ahead with your tax return

If you’re already reviewing your budget, you’re halfway there so why not complete your 2025/2026 tax return?

You don’t need to wait until 31 January 2027. You can file as soon as the tax year ends – and there’s a lot to be said for getting this chore done early.

Doing the maths now means you’ll know exactly what you owe months before having to pay the bill. This gives you time to plan, save, and avoid any fines for filing late.

You might even discover you’ve set aside too much money for your bill – if that’s the case you can put this money to work for goals, whether that’s for a holiday or boosting your retirement pot.

3. Set up regular payments into an Isa

Avoid the April scramble next year by regularly saving into your Isa over the course of this tax year.

Contributing monthly helps smooth cashflow by spreading the cost, and in turn builds good habits – especially if you automate it with a direct debit.

Drip feeding your investments monthly also offers a rewarding approach during times of market volatility.

Your monthly contribution naturally buys more units when markets are down, meaning potentially greater profits when they rise – known as pound cost averaging. Many providers let you do this free of charge.

4. Use Bed and Isa to protect existing investments

You don’t need new money to use your Isa allowance. If you’ve got investments sat outside of tax-efficient wrappers, you can move up to £20,000 into a stocks and shares Isa.

The earlier you do it, the sooner your investments can grow free of capital gains tax and UK income tax.

If you hold dividend producing shares, a Bed and Isa (share exchange) can be used to shield them from future tax.

The process involves selling and rebuying your investments inside an Isa, so capital gains tax may apply if the gains exceed the £3,000 allowance. This process can be repeated each year until all your investments are inside an Isa.

5. Don’t overlook cash savings

Cash you’ve got sat outside of Isas could quietly be creating a tax bill. With higher interest rates, more people will be tipping over the personal savings allowance – £1,000 for basic rate taxpayers and £500 for higher rate taxpayers. There’s no allowance for additional rate taxpayers.

If you earn interest over the allowance then you will pay tax. You don’t need to have a fortune tucked away to find yourself with a tax bill – acting early and sheltering it in an Isa can mean you sidestep the tax bill.

The clock is ticking for under 65s, who’ll see their cash Isa allowance drop from £20,000 to £12,000 next tax year.

April 2027 will also bring about higher income tax rates on savings interest – rising to 22 per cent for basic rate, 42 per cent for higher rate and 47 per cent for top rate taxpayer – so it pays to act sooner rather than later.

6. Turbo boost your pension contributions

The start of a new tax year can be a great time to look at whether you can afford to boost your pension contributions.

Making even small increases over time can make a major impact on how much you end up with in retirement.

It can be really helpful to use an online pensions calculator to check how much you are currently on track for and what impact your extra contributions may have.

7. Use your pension to cut your tax bill

Paying extra into your pension can also help you manage your tax bill by reducing what is known as your ‘adjusted net income’.

This can mean your income no longer breaches a tax threshold that would have tipped you over into higher rate of tax. It can also help preserve your entitlement to important benefits such as tax-free childcare.

People who earn over £100,000 can use pensions to avoid the so-called 60 per cent tax trap whereby your personal allowance of £12,570 is whittled away by £1 for every £2 over the threshold you earn.

You lose the whole amount once your income hits £125,140 and means that you could pay 60 per cent tax on some of your income. Increasing pension contributions can help you navigate this.

8. Keep your annual allowance in mind

It’s important to be aware of your annual allowance when boosting contributions. This is the amount you can contribute and receive tax relief.

This is usually whichever is lowest of £60,000 or your annual earnings. However, if you are a very high earner then you could be hit by the tapered annual allowance which could see your annual allowance hit just £10,000.

Similarly, if you have already flexibly accessed your pension then if you want to keep contributing to it you will be restricted to £10,000 per year.

9. Claim tax relief

Tax relief is a great incentive to contribute to your pension with the income tax you would have paid going into your pension instead.

If you are a basic rate taxpayer then you should receive the right amount of tax relief on your contributions automatically, but if you pay tax at a higher rate, you may need to claim some of it. It all depends on what type of pension you have.

If you are in a salary sacrifice arrangement, or what is known as a net pay arrangement, then you should get the right amount of tax relief.

This is because under net pay, your pension contribution is deducted from your salary before income tax is paid. This means you only pay tax on what is left, so will get full tax relief.

However, if you contribute to a ‘relief at source’ arrangement, then contributions are deducted from your salary after tax.

The employer takes 80 per cent of the contribution from the employee’s salary and then reclaims the extra 20 per cent from HMRC.

This means if you are entitled to tax relief at a higher rate, you need to claim it. Many private pensions, such as Sipps, as well as some workplace pensions, are set up as relief at source so do check with your provider.

Claims can be backdated for up to four tax years, and if you don’t fill out self-assessment forms, you can claim the relief online or via post.

10. Plan your pension income

If you are about to draw a retirement income, then it makes sense to plan, so you don’t end up paying more tax than you need to.

Taking large amounts from your pensions could mean you breach a tax threshold. You could also consider taking income from other sources such as Isas alongside your pensions.

Income from Isas can be taken tax free so can be useful in managing tax bills.

If you are accessing your pension for the first time, also be aware that if you take a lump sum, you risk being overcharged. You can get taxed on what is known as a ‘month one’ basis.

This means it’s treated as though the same amount will come out every month. This can result in a far bigger tax bill, which can come as a nasty surprise and could have a massive impact on your plans.

The good news is that you can reclaim this overpaid tax, but it’s a challenge that no-one needs. You can try and avoid it by making the first withdrawal from your pension a small one if possible.