Our End Of Tax Year Checklist

Tax is a highly complex subject. Whenever you’re preparing a savings strategy, it’s essential to understand whether tax will need to be paid on any interest or bonuses you earn. This blog is based on our current understanding of tax legislation. Tax treatment depends on individual circumstances and may be subject to change in the future. If you have any questions regarding tax, you should speak to a tax expert, which may incur a fee.

In this article, we will be explaining when the 2025/26 tax year comes to an end and providing a list of simple checks you can make to ensure that you’re getting the most out of your savings strategy.

When Does The Tax Year End?

In the UK, the tax year always runs from April to April.

The current tax year for 2025/26 started on 6 April 2025 and ends on 5 April 2026.

What Should I Check Before The End Of The Tax Year?

For the individual saver, the end of the Tax Year marks the reset point for a wide range of your allowances, including tax allowances, savings allowances, and ISA allowances.

ISA Allowances

Your ISA allowance resets every year at the end of the tax year. For the tax year 2025/26, the ISA allowance for most savers was set at £20,000, which means that this is the maximum value you can contribute to all of your ISAs.

The end of the tax year is an excellent opportunity to double-check how much money you have contributed to your ISAs so far, and to arrange any final top-ups you might need to reach that £20,000 cap.

If you haven’t already taken advantage of your ISA allowance for 2025/26 and you are considering adding a new ISA to your savings portfolio, consider browsing our range of ISAs, including our Single Premium Investment ISA, Regular Premium Investment ISA, and our Sustainable Investment ISA.

JISA Allowances

After checking your own ISA allowances for 2025, the next step is to consider any Junior ISAs (JISAs) that have been opened for your children.

The JISA allowance for the 2025/26 tax year was £9,000 per child. Opening a JISA for your child could be an excellent opportunity to contribute to their future in a convenient, tax-efficient way.

JISAs also allow your family and friends to contribute. Although a JISA has to be opened by the person with ‘Parental Responsibility’ for the child (meaning a parent or legal guardian), anyone can contribute to the account once it has been opened, as long as the total contributions remain below £9,000 for the tax year.

If you do not already have a JISA for your children, our Investment Junior ISA and Sustainable Junior ISA could be a great way to start your children’s savings journey. 

Personal Savings Allowance

Another key allowance that resets at the end of the tax year is your Personal Savings Allowance.

Your Personal Savings Allowance is the amount of money you are allowed to earn in interest before paying tax, and the size of your allowance is dependent on what tax band you fall into.

For the tax year 2025/26, the Personal Savings Allowance was set at the following:

• Basic rate:  £1,000

• Higher rate: £500

• Additional rate: £0

This means that if you are a basic rate taxpayer, earning between £12,571 and £50,270, you can earn up to £1,000 in interest on your savings before you are required to pay tax on that income.

For higher-rate taxpayers earning £50,271 to £125,140, this amount is £500.

Finally, if you are an additional rate taxpayer, earning over £125,140, you are expected to pay tax on any further interest earned on your savings.

If the interest on your regular savings account is likely to breach your Personal Savings Allowance, consider moving some of your savings to an ISA or another tax-efficient product, like a Tax-Exempt Savings Plan.

Please note: Tax Treatment will depend on personal circumstances and may be subject to change in the future. Sheffield Mutual is not a tax expert. If you have any questions regarding tax, you should speak to a tax expert, which may incur a fee. 

Marriage Allowance

Another useful area to check is whether or not you are entitled to use a marriage allowance. 

In the UK, the marriage allowance allows lower-earning partners to transfer £1,260 of their personal allowance to their partner each tax year, helping them save on tax. The UK Government has even set up a handy calculator to help UK residents calculate whether they can utilise their marriage allowance.

However, a marriage allowance can only be used if you or your wife, husband, or civil partner earns less than the value of their annual personal allowance, typically £12,570, or pays no income tax.

In addition to saving you money, this benefit may be claimed for the current tax year and the last four previous tax years. However, if you want to backdate your claim, you must submit it via a paper form available on the government website.

Tax treatment depends on personal circumstances, this is based upon our current understanding of the Tax rules.

Refresh Your Savings Strategy With Sheffield Mutual

At Sheffield Mutual, we offer a variety of savings options to help our members develop their own money-saving strategies.

Consider browsing our range of ISAs, TESPs, and other savings plans to find the best option for your savings. Alternatively, use our product selector to find the perfect way to add to your savings.

If you are interested in becoming a member of Sheffield Mutual, please contact us, and one of our friendly, helpful team members will be happy to answer any questions you may have.

This article provides generic information and the writer's opinions and should not be relied upon for investment decisions. Sheffield Mutual has provided no advice. If you doubt whether a savings or investment plan suits you, consider contacting a financial adviser for advice. If you do not have a financial adviser, you can get details of local financial advisers by visiting www.unbiased.co.uk or www.vouchedfor.co.uk. Advisers may charge for providing such advice and should confirm any costs beforehand.