Get the money marigolds on - 6 weeks left to go!

There are 6 weeks left of this tax year, which ends on 5th April. 6 weeks to pull on the Money Marigolds and make sure you have used as much as possible of your annual tax-free allowances.

By way of a quick recap, every UK adult can shelter up to £20,000 a year in any combo of a Lifetime ISA (if under 40 and saving for a first property or retirement), a cash ISA (best for certainty or timeframes of 3 years or less) and a Stocks and Shares ISA (best for longer-term savings).

The LISA contribution is capped at £4,000 a year, but this will bag you a £1,000 contribution from the Government. As for cash ISAs, the rumour mill is swirling about possible limits in future to the amount that can be paid into these in any one year (maybe a £4,000 limit instead of today’s £20,000 limit), as part of a broader drive to get the nation investing.

I’m not sure if Rachel Reeves will make changes here. As much as I want more people to invest, I don’t think these cash limits are a good idea. ISAs are confusing enough for people without endless tinkering. And we will get more people investing by removing the gobbledygook and explaining risk (and its upside, as well as downside) better – not by slapping restrictions on alternative products like cash.

If risk and jargon is putting you off, these Stocks and Shares ISAs are all good for beginners and 3 of them let you start with £50 or less. There are still risks of course, but you will understand them better. Or you can check out our overall 2025 Best Buy ISAs for all confidence levels or see our Lifetime ISA winners.

Another reminder – if you have no spare cash, but you have shares or investments NOT in an ISA, read up on the stupidly-named ‘Bed and ISA’. You can use your allowance by shoving investments into an ISA, so getting more of your money into a tax-free environment. Ask your current investment platform how they support this, or you can read more in my 12 Cunning Tax Tips.

One for the kids

Last up in the ISA family is one for the bairns – we can also pay up to £9,000 a year into a Junior ISA. This is where I do get into a strop about cash. If your kid is under 10, for example, then by definition this investment has at least an 8 year timeframe, so sitting in cash is like standing on top of the mountain with your skis on backwards. Counter-intuitively, the younger your child, the more ‘risk’ you should be taking because time is on your side, to weather all the short-term lumps and bumps in the road. Here are our 2025 Best Buy JISAs.

Don’t forget to brandish your pension sword

Last but most definitely not least, don’t forget your pension either. Pensions are like a sword you can use to cut a slice off your taxable income, so putting you into a lower tax bracket. This is particularly valuable for those higher earners around the £100,000 mark and can avoid the high marginal tax rates on that slice between £100,000 and £125,140 (different numbers apply in Scotland). Or for those who just tip over into the higher-rate bracket with a salary around £50,000 or people who earn between £60,000 and £80,000 and start to lose child benefits.

In terms of additional contributions, most of us can pay up to £60,000 a year into a pension. Gulp. But don’t let these big numbers put you off – this isn’t just for the fatter cats amongst us. Basic rate taxpayers will get the benefits when you pay in - £80 will turn into £100 in your pension account. Just like that! And higher-rate taxpayers also get a further benefit when they do their annual tax return – often in the form of a rebate. The basic idea is to incentivise us to save into pensions by effectively refunding us back the Income Tax we have paid on any income which is then paid into a pension.

There are few feelings better than getting a brown envelope from HMRC with a rebate notice in it. In fact, I suspect I was more excited when this plopped through the letter box a few weeks ago than I would be if Brad Pitt asked me out for dinner. How sad is that?! Online DIY pensions are easier to set up online than ever and you can check out our Best Buy Pensions.

Inheritance Tax alert - Not just for those who go beagling!

A final note on Inheritance Tax (IHT). New numbers out today show that the Treasury has banked a massive £7 billion so far this tax year from IHT. Estimates are this will hit over £8 billion by the end of the tax year. Rising house prices – especially in the South East – mean that many more people will find themselves above the thresholds (they start from £325,000 per person) and facing a 40% tax bill. This tax no longer just applies to those who eat kedgeree for breakfast and go beagling! Also remember that from April 2027, pension funds will be included in an individual's estate for IHT purposes.

This is tricky stuff and if you think it might apply to you, it's an area where financial advice can be invaluable.

Oh no, where to spend my bonus!

Spare a thought for poor bankers who are in the throes of an allegedly disappointing bonus season. Schnookums. I had a press release today from the business Collecting Cars which told me that a Managing Director on a typical bonus of £360,000 (where did I go wrong?!) could buy a Lamborghini Murciélago Roadster Manual for £302,007 or a Ferrari 458 Speciale for £319,000. There was also a 2015 Aston Martin DB9 for much less money I found myself looking at, until I thought about parking at Tesco and sitting in the 50mph roadworks of the M27 and realised that sticking with my 14-year-old car is probably the smarter move. One day I will wear crop-tops and buy a Ferrari. Just not today!

Holly

Want to get Holly's weekly blog straight to your inbox?

Sign up for no-nonsense tips, tricks and food for thought every Friday!

SIGN UP

I would like to hear from you about products, events, general marketing and other things from Boring Money – including personalised content and ads - but please try not to make them as boring as everything else in finance!

Already have an account? Login