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Your new tax year guide

Greyscale man in suit with money bag covering face. Purple background with the words 'Your new tax year guide' in bold lettering across the image.

You might be the kind of person who marks April 6 in your calendar… or the kind who only realises because of articles like this. Either way, this is your moment.


Because once a year, like clockwork, the tax year, and your allowances, reset. Clean slate. Fresh start. New opportunities to keep more of your money. And anything you didn’t use last year?


Gone.


So instead of overthinking it, here’s your no-stress, no-spreadsheet way to get on track.


Your “sort your money out” checklist


☐ Give your pension a 30-second check

☐ Boost it with a Shared Cost AVC

☐ Put something into your ISA (yes, even £5 counts)

☐ Check your tax code isn’t quietly robbing you

☐ Had a pay rise? Make sure future-you gets a cut


Do a couple of these and you’re already doing better than most people this tax year.


What actually resets on April 6?


Here’s your quick cheat sheet:

  • Annual pension allowance: up to £60,000 or 100% of your salary, whichever is lower. This is how much you can contribute to your pension tax-free each year.

  • ISA allowance: £20,000 to save or invest completely tax-free.

  • Personal allowance: the amount you can earn before paying income tax (£12,570 in 2025/26).

  • Capital gains and dividend allowances: both reset too, useful if you have investments outside of a pension or ISA.


Your key takeaway: Don’t let your hard-earned allowances go to waste. The new tax year is your yearly invitation to make the most of them.


Your pension: the habit that keeps on giving


If you're already paying into a workplace pension, great. You're building something important for your future self. But there's a good chance you could be getting even more out of it, especially if your employer offers Shared Cost AVCs.


What’s a Shared Cost AVC?

Think of it as extra savings for your future self. Contributions you choose to put into your retirement fund on top of what you already pay.


You choose to put a bit extra into your pension. It comes out of your salary before Income Tax and National Insurance.Which means:


  • You pay less Income Tax

  • You pay less National Insurance

  • More money ends up in your pension instead of disappearing


Here's an example for someone earning £32,000 a year who contributes £150 per month via a Shared Cost AVC:

£150

Added to pension each month

~£108

Actual reduction in take-home pay*

~£42/month

Effective saving vs. going alone

*Based on a basic-rate (20%) taxpayer. Higher-rate taxpayers save even more.


Why now’s the perfect time to start (or review)

  • Your annual allowances have just reset, so you have a full year to benefit

  • Many payroll systems process changes at the start of April, so timing is on your side

  • Already have a Shared Cost AVC? Even a small increase compounds over time and could make a big difference to your retirement income

  • If you received a pay rise recently, your take-home may already have gone up; a great moment to direct some of that extra into your retirement fund before you get used to spending it


Your new year to-do list


👉 Increase your Shared Cost AVC (even slightly) Future-you will not miss £25. But they will notice the difference later.

👉 Don’t have one? Start one Takes about 10 minutes. One of the easiest financial upgrades.

👉 Use your ISA allowance You don’t need £20k lying around. Just start somewhere. Even £5 makes a difference.

👉 Check your tax code It decides how much tax you pay. If it’s wrong, you could be overpaying or underpaying without realising.

👉 Got a pay rise? Adjust your savings

Don’t let lifestyle creep eat the whole thing.






Small steps, big difference


You don’t need a dramatic financial overhaul, just a few smart moves now can make a massive difference in the long run.


Shared Cost AVCs are often overlooked, but they’re simple, tax-efficient and can be easier to afford than you think. Take a moment, tick off a few items from the checklist,and give your future self a head start.

Happy new tax year!

This article is for general information only and does not constitute financial advice. Tax rules depend on individual circumstances and may change. Please speak to a qualified financial adviser for personalised guidance.


A Shared Cost AVC scheme is a pension product for active LGPS members, they may not be suitable for everyone, and you should consider if it’s right for you. My Money Matters supports your Shared Cost AVC journey, and the fund you choose to invest into will be managed by your chosen provider.


It’s important to remember that as your pension is invested, the fund value can go down as well as up, and you may get back less than you invest. The Pension eligibility and tax rules that apply depend on your individual circumstances and may change at any time.

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