What to do before the tax year ends: your April 5th checklist for ISAs, pensions and more
Written by Boring Money
18 Feb, 2026
The clock is ticking; make the most of your tax allowances before they reset on April 5th. From topping up your ISA to turbocharging your pension, here's a plain-English rundown of the moves worth making before midnight. And with a raft of tax changes landing in 2026/27, there's never been a better time to get your money properly sheltered.
Everyone should make a concerted effort to take back the reins on tax. The government has steadily been making tax more onerous, and it's time for us to fight back. Even if you don’t have time to finish the checklist before 5th April, treat it as a wake up call to be on it for the first week of the new tax year and bag those tax benefits early.
How much can I put into an ISA before April 5th?
Every adult has up to £20,000 a year to put into a largely tax-free Individual Savings Account, or ISA. You can have a Stocks and Shares one, and/or a Cash one, as long as the combined total paid in during any one tax year is not more than £20,000. The allowance resets on April 6th and cannot be backdated – so this really is a case of use it or lose it.
Don't be put off by these sums if you have less – the following lets you open an ISA with just £1. Lightyear and Trading 212 are good apps for buying shares; Monzo, True Potential, and Wealthify are easy ways to get a simple diversified investment ISA started. Barclays and Bestinvest are good for both funds and shares, and let you open an ISA with just £50, as does Scottish Widows.
The world is quite a bonkers place right now, and stock markets are volatile.
At this time of year, the media is awash with suggestions about the latest faddy way to invest your ISA. It’s worth taking a deep breath & remembering that a simple portfolio of global equities left alone to grow will almost always give you the best return over the long term.
Amidst this turbulence, if you have some long-term savings to shield from tax but don't quite know where to invest it, don't panic. You can pay into a Stocks and Shares ISA and leave it in cash for now, before making the move. Some platforms even pay interest on cash balances while you bide your time.
One thing worth knowing: if you've made withdrawals from a flexible ISA this tax year, you may be able to replace that money before April 5th on top of your £20,000 allowance. So if you withdrew £5,000 earlier in the year, you could potentially top up by £25,000 in total – though not all providers offer this flexibility, so check with yours.
Check out our 2026 ISA Best Buys to make your pick, see who we rate, or read what 30,000 customer reviews have to say.
Why are pensions so powerful right now?
A reminder on the basics of Why Bother? Basic rate
taxpayers who set up a pension (can be done online – you can see our Pension Best Buys for 2026) and put in £80 will see this turn into £100. Just like that. Higher rate taxpayers can claim back a further chunk through their Self-Assessment tax return, and additional rate taxpayers can do even better. In plain terms, a £1,000 contribution costs a higher rate taxpayer just £600 after relief.This is what people mean by tax relief. It's basically a refund of the tax you paid on your income, to give you a pat on the head for saving for your retirement. And with income tax thresholds frozen until 2031, pension contributions are becoming more valuable, not less. If you're worried a pay rise is about to push you into a higher band, now is a very good time to act.
Pensions are unrivalled in their ability to grow long‑term wealth. From day one, tax relief amplifies every contribution, while investment growth remains protected. It’s one of the most effective ways to convert current income into lasting financial security — a true cornerstone of a well‑built retirement plan.
What if I earn over £100,000 – can a pension help?
Anyone who earns between £100,000 and £125,140 (where you effectively pay Income Tax at a blistering 60% because your tax-free allowance of £12,570 progressively falls away with every £ earned above £100k) has to understand the power of pensions to reduce your taxable income below this threshold.
And the same concept applies for any parent earning between £60,000 and £80,000 – at which levels child benefit payments are reduced. For example, if you earn £63,000 and pay £4,000 into a pension, your taxable income would fall to £59,000, so you get full child benefit payments AND tax relief on the £4,000. Lovely jubbly. SEE. Pensions really are hot!
I would add that an often overlooked and related consideration here is where individuals receive share-based compensation, like Restricted Stock Units (RSUs). These are commonly treated like employment income when they vest and so typically incur a high level of tax. This can often be reclaimed, to a large extent, via pension contributions, which has the double whammy impact of both tax advantages and diversification benefits, reducing your economic risk associated with your employer. This can be a complex planning area, and it is a good idea to seek financial advice.
Can I carry forward unused pension allowances from previous years?
Anyone with a bonus, inheritance, or lump sum should make sure they understand the carry forward rules. Most of us could pay up to £60,000 into a pension in any one tax year and get lovely extra money from tax relief. And if we haven't used this allowance in the three previous years, we could add it all up and invest one massive sum. For someone who hasn't paid into a pension in the last three years, the maximum they could pay in this year is a whopping £220,000 – that's this year's £60,000, plus the two previous years at £60,000 each, and £40,000 from 2022-23 when the annual limit was lower.
To use carry forward, you need to max out this year's allowance first, and you must have been a member of a UK-registered pension scheme in each of the years you're carrying forward from – even if you didn't contribute. The oldest year gets used first.
If you are an employee, remember that you can only pay in up to 100% of your earned income. Only salary and bonuses count – you can’t include rent or lump sums you receive from other sources. Carry forward can be complex, so speak to an adviser if you aren’t sure.
If you own a business, could you make a company contribution into your pension, potentially also make use of carry forward, and also save on National Insurance for the business, as well as income tax for yourself?
What is salary sacrifice and should I use it?
If your employer offers salary sacrifice, it lets you exchange part of your salary or bonus for an equivalent pension contribution. This reduces both your income tax and National Insurance – a particularly useful trick for anyone close to key thresholds like £50,270 or £100,000. The rules are due to tighten from April 2029, so if you have access to this, now is a good time to make the most of it.
There are lots of levers to pull with pensions, so do your homework, check out our guide to personal pensions or consider financial advice, particularly if you have more than £100,000 or a large pension decision to make.
Should I move investments into an ISA or pension before April 5th?
With taxes on dividends
and investment income rising in the new tax year, it's increasingly expensive to hold assets outside a tax wrapper. If you hold shares or funds in a general investment account, it's worth considering a Bed & ISA or Bed & SIPP before April 5th. This simply means selling the assets and immediately rebuying them inside an ISA or pension. You may trigger some Capital Gains Tax on the way out, but future growth and income will be sheltered. Providers tend to set early deadlines for these transactions, so don't leave it until the last minute.How much can I put into a Junior ISA for my child?
Every child under 18 has an annual allowance of £9,000, which can be paid into a Junior ISA. Hello, grandparents?! Also worth considering for richer families who have used up their own individual ISA allowances. Or for those without megabucks, consider setting up a monthly direct debit – even £10 a month builds up something meaningful for the children.
Warning – they do get access to this when they are 18.
Once your child turns 18, you could consider swapping this money into a Lifetime ISA. If, for example, you have saved £4,000 into a Junior ISA and then move this into a LISA when they hit 18, there would be an additional freebie top-up of another £1,000, boosting their savings for a first flat deposit to £5,000.
And one for the real forward planners: non-taxpayers – including children – can open a pension and still receive basic rate tax relief, up to £2,880 a year (topped up to £3,600 by the government). A grandparent who contributed £2,880 a year from birth to age 18 would see total contributions of £64,800 grow to over £1 million by retirement age, based on a 5% annual growth rate. Not bad for a gift they definitely won't appreciate until much, much later.
What are the rules on gifting money to reduce Inheritance Tax?
This tax is making more of an impact on more and more families, not just those who eat kedgeree for breakfast and go beagling. Older readers should consider their options – and it's becoming more pressing: IHT thresholds
are frozen until 2031, and from April 2027, unspent pension pots will also fall within the scope of IHT.What if I'm married – can we double up on tax allowances?
If you're married or in a civil partnership, don't forget you effectively have two sets of allowances to play with – two ISA allowances (£40,000 between you this tax year), two sets of Capital Gains Tax exemptions, two dividend allowances. Assets can also be transferred between spouses without triggering a tax event, which can be a handy way to make sure taxable assets sit with the lower-rate taxpayer in the household. Just remember, they become the full legal owner of whatever you hand over, so probably not a move for relationships on rocky ground.
Higher rate taxpayers can find other tips and ideas in this article.
