New tax year checklist: 7 things to do for your money

At midnight on 5 April 2024, the current tax year will finish and the new 2024-25 tax year will begin. 

From checking how your bills are changing to understanding your allowances and making the most out of the new Isa rules, we’ve identified seven actionable steps you can tick off your list for a great start to the new financial year. 

1. Check if your bills are going up

With the rising cost of living still weighing heavily on many households, it's worth using the new tax year to check how your monthly expenses might change, so you can cover increases and find ways to save.  

Some broadband, mobile and TV prices are set to rise by up to 8.8% for customers in April. But you might be able to to save. Our research found switching can slash broadband, pay-TV and mobile bills by up to £187.

Water suppliers across the UK are also upping bills from April, with the average annual water and sewage bill expected to rise by 6% in England and Wales, and by 8.8% on average in Scotland. Your water bill is harder to save on as you aren't able to switch supplier, but we have 4 tips to save on your water bill.

• Find out more: April bill price hikes – how to save money

2. Take note of insurance end dates

The new tax year is also a good time to review how much you are paying for your car, home, pet and travel insurance, and when you need to renew your policies.

This is especially important as many insurance premiums continue to rise. For instance, car insurance premiums hit another record high, with a 29% increase reported by the Association of British Insurers (ABI) in November 2023. Similarly, home insurance costs surged by 40.6% over the 12 months leading to January 2024, according to the Consumer Intelligence Home Insurance Price Index. 

So it's a good idea to make a note of when your policies are up for renewal and putting the dates in your diary for a month earlier so you can start shopping around for a new deal to compare against your renewal quote.

• Find out more: our best car insurance and home insurance guides will tell you which providers and policies offer the best value for money

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3. Get to grips with your tax paperwork

Your tax code tells your employer or pension provider how much income tax to deduct from your wages or pension, so you'll want to make sure it's right.

 You may get a tax code notice through the post, but you can also check your tax code on the government website. 

Being on the wrong tax code could mean HMRC doesn't have enough information about you, you owe money to HMRC or are owed a refund.

Another bit of tax paperwork to keep an eye out for if you are an employee is a P60. This document shows your earnings and tax payments from 6 April to 5 April in the previous tax year.

Your P60 provides evidence of the tax you've paid and is often needed for things like applying for a mortgage.

• Find out more: understand your tax code

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4. Make the most of new Isa rules

Isas are handy tools for savers and investors. They allow you to earn interest, dividends and capital gains tax-free, which means better returns over the long-term – and they could also cut paperwork and dealing with HMRC.

Currently, you're limited to opening and paying into one Isa of each type per year, but this rule will be scrapped from 2024-25.

So, for example, you could open two cash Isas with different providers in the 2024-25 tax year, all within the £20,000 annual allowance. This might suit you if you want to benefit from the flexibility of an instant-access deal and the higher rates available on fixed-rate bonds.

• Find out more: best cash Isas 2024

5. Review your investments

The start of the new tax year is a good time to adjust your investment portfolios to confirm they align with your financial goals and risk tolerance, and ensure that you're not paying too much in fees. 

Thanks to the new Isa rules, transferring investments between Isa providers will become easier. From 2024-25, you can transfer part of your Isa portfolio from one provider to another without moving everything. 

This flexibility lets you explore cheaper Isa providers, potentially saving you a lot on fees. For instance, moving £25,000 invested in funds from a costly platform to a more affordable one could save you £75 annually. Larger portfolios could save over £1,000. 

• Find out more: explore the best investment platforms and best stocks and shares Isa options for 2024

6. Look for ways to cut your tax bill

With the personal allowance frozen for 2024-25, it's important to take advantage of other tax reliefs and allowances that might help reduce your tax bill. 

The trading allowance, for example, allows individuals to earn up to £1,000 annually tax-free for casual trading. This can include selling items online or providing services like dog walking. However, if you earn more than £1,000, you'll need to declare your income as part of a self-assessment tax return. Keep in mind that choosing the trading allowance means forfeiting expense claims, so weigh your options carefully.

If you're married or in a civil partnership, you may be able to use the marriage allowance to increase your tax-free income by up to £252 in 2024-25. To qualify, one partner must earn less than the personal allowance (£12,570), while the other must be a basic-rate taxpayer earning between £12,571 and £50,270. This allows the lower-earning partner to transfer £1,260 of their personal allowance to the higher-earning partner, reducing their tax bill. By backdating your claim, you can receive a tax rebate of up to £1,242.

• Find out more: tax reliefs – how to reduce your tax bill 

7. Understand tax-free allowance cuts

The annual tax-free allowance on capital gains will be halved in 2024-25. This means that individuals who earn more than £3,000 (£6,000 for couples) in profits made from selling assets, such as property or significant shares in a fund, will need to pay capital gains tax (CGT).

However, CGT doesn't apply to the sale of your primary residence, meaning most people aren’t affected by this. Couples can effectively double their annual allowance by transferring assets to each other without incurring CGT, and allowable costs like estate agent fees and stamp duty can be deducted from the taxable gain.

Alongside the halving of the CGT allowance, the tax-free allowance for dividends is also decreasing from £1,000 to £500 per year, starting in April. This change underscores the importance of Isas for investors, as dividends from investments held within Isas remain tax-free.

• Find out more: use our capital gains tax rates and allowances and dividend tax explained guides to navigate the changes

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