Key actions to take before 6 April 2025: tax, pensions, and investments

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By Dr Ed Cantelo

With the tax year ending on 5 April 2025, now is the perfect time to review your financial situation with regards to tax, pensions and your investments. Here are some key areas to focus on before the clock runs out:

1. Tax

a. Claim tax rebates for 2020/2021 - act now!

If you incurred professional expenses in the 2020-21 tax year, you have until 5 April 2025 to claim any eligible tax relief. You can claim tax deductions for expenses incurred up to four tax years back, but once the new tax year begins, you’ll lose the opportunity to make a claim for the 2020-21 tax year. Be sure to make the claim before the deadline to benefit from these potential savings.

Action: Use the Medics' Money step-by-step guide for claiming expenses here: Medics’ Money Tax Rebate Guide.

b. Evaluate your adjusted net income

Your adjusted net income (ANI) is crucial in determining your marginal tax rate - the rate of tax you pay on an extra £1 of taxable income - and eligibility for various tax benefits such as the tax-free childcare scheme. If your ANI exceeds £100,000, you start losing your personal allowance, resulting in a marginal rate of 60% (or 67.5% in Scotland). If you're close to this threshold, it’s worth considering strategies like pension contributions or Gift Aid donations to reduce your ANI though you must do so with care eg, making pension contributions can affect your Pension Annual Allowance.