7 Year-End Money Moves to Make Before April (And Why December Matters Too)
The UK tax year ends in April, but December is when smart money moves happen. Here's your year-end financial checklist with calculators to run your numbers.
While the UK tax year runs April to April, December is still a critical time for your finances. Christmas bonuses, annual reviews, and the new calendar year make this the perfect moment to take stock and plan ahead.
Here are the money moves to make now—and what to prepare for before April 5th.
1. Check Your Pension Contributions
Annual Allowance: £60,000 (or 100% of earnings if lower)
If you've received a bonus this year or had a salary increase, you may have room to make additional pension contributions before the tax year ends.
The Tax Relief
| Tax Band | Contribution | Government Top-Up |
|---|---|---|
| Basic (20%) | £1,000 | £250 |
| Higher (40%) | £1,000 | £500 (via self-assessment) |
| Additional (45%) | £1,000 | £562 (via self-assessment) |
Salary sacrifice into your pension also saves National Insurance—an extra 12% for most employees.
***** Check your payslip for YTD pension contributions. You can use up to 3 years of unused allowance through "carry forward" if you've been in a pension scheme.
2. Use Your ISA Allowance
2025/26 ISA Limit: £20,000
The ISA deadline is April 5th, but don't leave it until the last minute. Markets don't wait for you to decide.
Types of ISA:
- Stocks & Shares ISA - Best for long-term growth
- Cash ISA - Rates are actually decent right now (4-5%)
- Lifetime ISA - 25% bonus up to £4,000/year (if eligible)
Every year you don't use your allowance, you lose it forever.
Calculate your investment growth →
3. Review Your Tax Code
December payslips often reveal errors that have compounded all year. Check your tax code on your payslip:
- 1257L is the standard code for 2025/26
- BR means all income taxed at basic rate (often wrong for second jobs)
- K codes mean you owe tax from previous years
If your code is wrong, contact HMRC. You could be owed a refund—or facing an unexpected bill in April.
4. Maximise Your Christmas Bonus
If you're receiving a Christmas bonus, decide now how to deploy it:
| Option | Benefit |
|---|---|
| Pension contribution | 20-45% tax relief + NI savings |
| ISA investment | Tax-free growth forever |
| Overpay mortgage | Interest savings (check for penalties) |
| Clear high-interest debt | Guaranteed 20%+ return |
| Emergency fund | Peace of mind |
The worst option? Letting it sit in a current account earning 0%.
5. Use Your Capital Gains Allowance
2025/26 CGT Allowance: £3,000
Yes, it's been slashed. But you can still shelter £3,000 of gains tax-free each year.
If you have investments outside an ISA with gains, consider:
- Selling £3,000 of gains before April 5th
- Immediately reinvesting in an ISA (Bed and ISA)
- Using losses to offset gains above the threshold
Don't let the allowance go to waste.
6. Check Your Student Loan
December is a good time to verify:
- Are you on the right plan? (Plan 1, 2, 4, 5, or Postgraduate)
- Is your payment threshold correct?
- Have you overpaid without realising?
Many people accidentally overpay when they're close to paying off. If you're nearing the end, switch to direct debit to avoid overpaying through PAYE.
| Plan | Threshold (2025/26) | Rate |
|---|---|---|
| Plan 1 | £24,990 | 9% |
| Plan 2 | £27,295 | 9% |
| Plan 4 | £31,395 | 9% |
| Plan 5 | £25,000 | 9% |
| Postgraduate | £21,000 | 6% |
7. Set Financial Goals for 2025
While you're reviewing everything, plan for next year:
- Increase pension contributions - Even 1% more adds up
- Build emergency fund - 3-6 months expenses
- Attack debt - Highest interest first
- Start investing - If you haven't already
Plan your debt payoff strategy →
The UK Year-End Checklist
| Action | Deadline | Impact |
|---|---|---|
| Review pension contributions | April 5 | Thousands in tax relief |
| Use ISA allowance | April 5 | Tax-free growth |
| Check tax code | Now | Avoid April surprises |
| Deploy Christmas bonus | December | Don't waste it |
| Use CGT allowance | April 5 | £3,000 tax-free gains |
| Check student loan | Now | Avoid overpaying |
Run Your Numbers
- UK Salary Calculator - See how pension changes affect take-home
- FIRE Calculator - Track your path to financial independence
- Investment Returns Calculator - Project your ISA growth
- Debt Payoff Calculator - Plan your 2025 debt attack
The Bottom Line
December feels like the end, but financially it's a midpoint—you've got until April 5th for many tax moves. Use this quiet period between Christmas and New Year to review, plan, and set yourself up for a stronger 2026.
The best time to sort your finances was years ago. The second best time is now.