The start of a new tax year is the perfect opportunity to take stock of your finances, review your goals, and make sure your money is working as efficiently as possible.
Whether you’re a company director thinking about salary and dividends, a sole trader looking to reduce your tax bill, or an individual with savings and investments to organise; smart financial planning in 2026 can make a real difference.
At Arcus, we believe tax planning should be proactive, not reactive. Small changes made early in the tax year can save you significantly by the time January comes around. Here are some of the key opportunities worth considering for 2026/27.
Make the Most of Your Pension Contributions
Pensions remain one of the most tax-efficient ways to save for retirement in the UK, and from an accountant’s perspective, they’re also one of the most effective tools for reducing your tax bill.
- Salary Sacrifice: If you’re employed, ask your employer to exchange part of your salary for an employer pension contribution. This reduces your income tax and National Insurance contributions, and employers often pass on their NI savings too.
- Maximise Employer Matching: Check your workplace scheme; increasing your own contributions may unlock higher contributions from your employer.
- Use Your Annual Allowance: You can contribute up to £60,000 across all pensions in 2026/27 and receive tax relief, subject to your earnings.
- Carry Forward Unused Allowance: Haven’t used your full allowance in previous years? You may be able to carry forward unused allowance from the past three tax years, provided you were a member of a registered pension scheme in those years.
- Claim Higher Rate Relief: If you pay tax at 40% or 45%, and contribute to a relief-at-source pension, you can claim the additional relief above the basic 20% via your Self Assessment return. This is something we can help ensure doesn’t get missed.
- Non-Earner Contributions: Even with no income, you can contribute up to £3,600 gross (£2,880 + £720 tax relief) per year.
- Watch the Tapered Allowance: If your threshold income is over £200,000 and your adjusted income exceeds £260,000, your annual allowance may be reduced. The minimum tapered annual allowance for 2026/27 is £10,000.
If you’re a director, the way pension contributions are structured can have a significant impact on your overall tax position, it’s worth coming in for a conversation.
Use Your ISA Allowances
ISAs remain one of the simplest ways to save and invest without paying Income Tax or Capital Gains Tax on growth. The annual allowance for 2026/27 is £20,000, and unused allowance can’t be carried over, so early action gives your savings more time to grow.
- Cash ISA: Best for short-term savings where protecting your capital is the priority.
- Stocks & Shares ISA: Suited to longer-term savers comfortable with investment risk in exchange for the potential for higher returns.
- Lifetime ISA (LISA): Contribute up to £4,000 per year (within your £20,000 limit) and receive a 25% government bonus. Available to those aged 18–39.
- Junior ISA (JISA): A separate allowance of £9,000 per child per year, a tax-efficient way to save for the next generation.
For specific investment decisions within an ISA, we’d always recommend speaking with an independent financial adviser. What we can help with is making sure these fit into your wider tax picture.
Directors: Review Your Salary and Dividend Strategy
If you run your own limited company, the start of a new tax year is the ideal time to revisit your salary and dividend split.
The optimum combination changes as thresholds and rates shift; and getting it wrong means either paying more tax than necessary, or inadvertently triggering unexpected National Insurance liabilities.
For 2026/27, it’s worth reviewing:
- The most tax-efficient salary level (typically around the NI secondary threshold)
- Whether your dividend drawings are optimising the basic and higher rate bands
- Whether pension contributions from the company could reduce your Corporation Tax bill
- How your personal allowance is being used
This is one of the most impactful conversations we have with director clients each year, and one that’s best had early, not in January.
Capital Gains and Tax Planning
Tax planning should be ongoing, not something you rush through in March. Many people focus on what they earn and invest, but how efficiently you manage the tax on those returns matters just as much.
Acting early in the tax year gives you considerably more flexibility. Depending on your circumstances, opportunities may include:
- Using your Capital Gains Tax annual exempt amount efficiently
- Transferring assets between spouses or civil partners
- Structuring investments tax-efficiently across different wrappers
- Managing dividend income to stay within lower-rate bands
- Reviewing your Inheritance Tax position
We can help you map out your position and identify where sensible planning can reduce your overall tax exposure; without anything aggressive or complex.
Don’t Leave Your Self Assessment Until January
If you file a Self Assessment return, the new tax year is also a good time to get organised rather than scrambling in December and January.
Gathering records, reviewing allowable expenses, and thinking about estimated tax liability early means no nasty surprises — and gives us time to plan rather than just report.
This is especially relevant if you have:
- Income from self-employment or freelancing
- Rental income from property
- Capital gains from asset disposals
- Higher earner child benefit considerations
- Multiple income streams to reconcile
Revisit Your Financial Goals
The beginning of a tax year is a natural moment to step back and look at the bigger picture. Goals change; retirement timelines shift, businesses grow, family circumstances evolve. A strategy built around last year’s position may not be the right one for where you are now.
It’s worth asking:
Are you on track for retirement?
- Could your savings be working harder in a more tax-efficient structure?
- Is your business extracting profit as efficiently as possible?
- Could your financial arrangements be simplified?
Financial planning works best when it reflects your current situation, not last year’s.
How Arcus Can Help?
Tax rules, allowances, and legislation change regularly, and keeping on top of it all while running a business or managing a busy life isn’t always realistic. That’s where we come in.
We work with individuals, company directors, sole traders, and landlords across Rutland, Stamford, and the surrounding area, helping them:
- Build tax-efficient strategies for the year ahead
- Identify allowances and reliefs they might otherwise miss
- Stay on top of Self Assessment and deadlines
- Make confident decisions about their money
If you’d like to talk through your tax position and what 2026/27 looks like for you, we’d love to help.
Get in touch with the Arcus team in Oakham
Please note: Tax treatment depends on individual circumstances and may change in the future. This blog is for general information only and does not constitute financial or investment advice. For regulated investment advice, please speak with an independent financial adviser.
