At a glance

  • Getting smarter with your money – how you save it, where you invest it and how it can work for you – gives you greater confidence and control, whatever age you are. 
  • Knowing how much you’re spending can make sure you’re not missing out on tax-efficient savings or investments.  
  • Working with a financial adviser will get your finances match-fit for tax year-end. 

92% of those taking financial advice or guidance said it had improved their mental and financial wellbeing.1

Getting into tax-smart habits

When it comes to managing your money, making short-term or last minute snap decisions can end up costing you more in late payments, lost interest or penalties. But getting your house in order and starting some regular savings and money management habits can make all the difference to your financial – and emotional – wellbeing.

These are our top five tax-smart tips for managing your money in 2025. 

5 tax-saving tips for 2025Check you’re using all tax allowances and reliefs.  Check current balances and interest rates of all your assets –including current and savings accounts, investments, property values, pensions and premium bonds.Review all ongoing subscriptions, memberships, and take a call whether they’re worth keeping or not.Set up a regular contribution into some form of medium- to long-term savings pot.Arrange regular, six-monthly financial ‘health checks’ with your adviser, to help keep on track.

 

1. Make the most of your allowances

Do you know how many tax allowances you’re entitled to – and whether you’re making full use of them? Many of us remember to top up our ISAs as much as possible before tax year-end, but there are other, often overlooked allowances and ‘carry forwards’ that can save you money.

Did you know, for example, that in addition to the £60,000 annual pension allowances (or 100% of your earnings, whichever is lower) on pension payments, HMRC will let you carry forward any unused allowances from the previous three tax years?

Or that you could gift up to £3,000 tax-free in a single tax year? Not only that, but the gifting allowance also comes with a year’s worth of ‘carry forward’ And if your child is planning their wedding or civil partnership ceremony, you can make an additional tax-free gift of up to £5,000.

And there’s individual tax free gifts of up to £250 each too. Any gifts you make won’t be counted as part of your estate, when it’s time to pay Inheritance Tax. If you make a larger gift over the allowances, you need to survive for seven years from the date you made the gift, otherwise it will be counted as part of your estate and liable to some IHT.

2. Check what you’re worth

When was the last time you checked how pensions were doing? Or how much interest your savings accounts or ISAs earned this year? Listing all your assets, from pensions to property and premium bonds, is a tax-smart start, but reviewing them regularly is an even smarter money habit for long-term financial wellbeing. You may have more than one pension pot if you’ve changed jobs in the past. And if you have an easy-to-access cash fund for emergencies, does it still have enough in it to keep you and your family afloat for up to six months, if necessary?

You may be pleasantly surprised by how much you’re worth. Which is why it pays to keep making tax-smart money moves.

3. Spring-clean your spending!

Do you know how many memberships and subscriptions you’re currently signed up for? Many of us are signed up for entertainment streaming services. So checking that you, or another family member, are actually still using the service you’re paying for, is another a smart money move. Those small monthly payments add up. You might want to switch to another provider or unsubscribe completely.

A financial adviser can help you streamline your spending, which may free up some surplus income to put into a tax-efficient ISA, or into your pension. It’s like clearing out your 
financial inbox.

4. Set up regular contributions to ISAs, savings or pensions

Setting up regular, monthly payments into your savings or pension is a top tax-smart tip. It’ll put you ahead of the game at tax year-end and avoid a last-minute rush to bump up a tax-efficient ISA contribution just before 5 April. Plus, regular contributions to any form of savings or investments help smooth out the volatility of stock market blips or changing interest rates.

Don’t feel guilty if the monthly amount seems small – it’s keeping the regular saving habit going that’s important in the long run.

5. Check in regularly with a financial adviser

As a rule, setting aside an hour a week to check payments or interest rates yourself will save both time and tax in the long run. But checking in on a regular basis with a financial adviser to monitor if you’re on track is just as important for your long term financial health.

Life doesn’t stand still in between financial reviews – we’re used as sounding boards and sense checks throughout the year. Even if you just want to query something you heard on the news, or whether a change in the tax regulations will impact you, our advisers are ready with practical, informed advice.

Regular financial reviews will help keep you on track for the future, and make sure you’re making tax-smart decisions with your money. 

Why financial advice is a smart move

Smart money moves aren’t about once-a-year decisions, however. Having expert financial advice or guidance you can turn to at any point helps you make positive, informed choices year-round.

If you’re not already taking financial advice, this is perhaps the smartest move to make. It can help you stay on track towards your long-term goals, and gives you clear, practical advice if you hit a financial downturn or need support managing your family finances short-term. 

It’s the move that drives other good financial habits, and ultimately your financial wellbeing.

The value of an investment with St. James’s Place will be directly linked to the performance of the funds selected and may fall as well as rise. You may get back less than the amount invested.

The levels and bases of taxation, and reliefs from taxation, can change at any time and are generally dependent on individual circumstances.

Savings accounts are not available through St. James’s Place. 

Sources
1The Real Life Advice Report was commissioned by St. James’s Place nd carried out by  Opinium who surveyed just under 12,000 UK adults nationwide in two polls between May and August 2024. Quantative data referenced is sourced from the first poll which had a total sample of 7,995 respondents.

SJP Approved 20/11/2024