As we enter the 2025/26 tax year, now is the perfect time to hit the reset button on your family’s financial planning. With new tax updates and allowances in play, it’s essential to start the year strong by reviewing key areas of your family finances. By taking the right steps early on, you can ensure that your financial strategy is optimised to take advantage of available tax breaks, reduce the impact of inflation, and work toward your long-term goals.

At Fogwill & Jones, we’re here to help guide you through the process, offering expert advice to ensure your family’s finances are on track. Here’s your 2025/26 tax year checklist to get you started:

2025/26 Tax Year Checklist:

1. Check Your Tax Allowances and Make the Most of Them

The start of the new tax year is the ideal time to review your available tax allowances. These can help reduce your taxable income, saving you money in the long run. Key allowances to check:

• Personal Allowance: Ensure that you’re maximising your personal tax-free allowance (£12,570 for most taxpayers). If your income is close to this threshold, consider ways to reduce your taxable income, such as contributing more to pensions or using other allowances.

• Marriage Allowance: If you’re married or in a civil partnership, and one of you earns below the personal allowance, you may be eligible for the marriage allowance. This can allow you to transfer a portion of your unused allowance to your partner, lowering your overall tax bill.

• Capital Gains Tax Allowance: If you’re selling investments or assets, make sure you’re aware of your annual Capital Gains Tax allowance. It’s a good idea to review your investments to ensure you’re not overlooking tax-efficient options like ISAs or pension contributions.

2. ISA Opportunities: Maximise Your Contributions

ISAs continue to be one of the best ways to grow your wealth in a tax-efficient manner. For the 2025/26 tax year, you can contribute up to £20,000 across your ISAs, including Cash ISAs, Stocks and Shares ISAs, and Innovative Finance ISAs.

For families, it’s worth considering:

• Junior ISAs: If you’re saving for your children’s future, now’s a great time to make use of Junior ISAs. The annual contribution limit for Junior ISAs is £9,000. This is an excellent way to give your children a head start in life while taking advantage of tax-free growth.•

• Stocks and Shares ISAs: If you have a longer investment horizon and are comfortable with some market risk, consider using your ISA allowance for stocks and shares. The growth from these investments is free from tax, making them an effective tool for growing your wealth over time.

3. Take Advantage of Tax-Free Childcare

If you have children under the age of 12 (or 17 for children with disabilities), the Tax-Free Childcare scheme can save your family money. For every £8 you pay into your childcare account, the government will add £2, up to a maximum of £2,000 per child per year.

If you’re not already enrolled in the scheme, now’s the time to apply. If you’re already using it, make sure that your account is updated and you’re fully utilising the allowance. With rising childcare costs, this can make a significant difference to your family budget.

4. Review Your Family Budget Against Inflation

The cost of living continues to rise, and inflation remains a key consideration for families. It’s important to review your family budget and make adjustments where necessary to ensure you’re staying on track. This includes:

• Revisiting Spending Habits: With rising prices, some expenses may have increased without you noticing. Take time to reassess your household spending and identify areas where you can cut back or be more efficient.

• Energy and Utility Costs: Rising energy prices are still a concern for many households. Review your energy plans and see if there are more cost-effective options available. Additionally, check if your home qualifies for any green energy incentives or rebates.

• Food and Essentials: Inflation has hit grocery bills hard. Plan ahead by shopping smart and considering options like bulk buying or meal planning to reduce costs.

5. Goal Setting and Planning for the Future

The new tax year is also a great time to revisit your family’s financial goals and make sure you’re on track. Whether it’s saving for a holiday, your children’s education, or buying a new home, setting clear goals will help you stay focused and motivated. Consider the following:

• Short-Term Goals: These might include saving for a large purchase, building an emergency fund, or paying down high-interest debt.

• Medium-Term Goals: These could involve funding your children’s education or saving for a significant home renovation project.

• Long-Term Goals: Retirement planning, investing in your pension, and providing for your family’s future.

Use these goals to guide your family’s financial decisions throughout the year and make sure that you’re prioritising what matters most to you.

6. Review Your Insurance Coverage

As your family grows and changes, it’s important to ensure that your insurance coverage reflects your current situation. This includes life insurance, health insurance, and income protection. Reviewing these policies annually ensures that you’re fully protected and that your beneficiaries are properly accounted for.

Why Expert Guidance Makes All the Difference

While the above checklist gives you a solid starting point, navigating family finances can be complex. Tax laws, allowances, and financial strategies are always evolving, and it’s important to get personalised advice that aligns with your personal financial situation.

At Fogwill & Jones, we offer expert financial planning services to help you optimise your family’s finances for the year ahead. From tax-efficient savings strategies to smart budgeting and goal-setting, we’re here to guide you every step of the way.

Ready to Get Started?

The new tax year is a great time to take charge of your family’s financial future. Don’t wait to start making these important changes. Book a consultation with us today to ensure your family’s finances are working as hard as you do.

Call us at 01142 588899 or email info@fogwilljones.co.uk to schedule a review and get expert advice on how to make the most of the 2025/26 tax year.

Let’s optimise your family’s finances together.