As the end of the tax year fast approaches, millions of Brits are at risk of losing out on valuable tax-saving opportunities, according to new research from interactive investor (ii), the UK’s second-largest platform for private investors.
The study reveals that nearly a quarter of adults – around 12.3 million people – fail to consider the tax year end deadline when making investment decisions. Alarmingly, almost one in five (17%) admit they don’t understand what the tax year end is or why it matters to their financial planning.
The findings are part of ii’s Tax Year Zen campaign, which aims to demystify tax-efficient investing and encourage savers to take full advantage of tax breaks available to them.
The campaign seeks to provide straightforward, practical advice to help investors make more confident decisions.
Camilla Esmund, Senior Manager at interactive investor, stressed that it’s more important than ever for individuals to make their money work harder as the financial landscape becomes more challenging. However, many are unaware of the significance of the upcoming deadline, which marks the end of the current tax year on April 5, 2025.
Esmund pointed out that women, in particular, seem less aware of the tax year end, with one in five (20%) unaware of the deadline, compared to just 13% of men. She warned that failing to act before the deadline could mean missing out on tax relief on pension contributions or losing the opportunity to top up ISAs, which could significantly affect long-term savings.
“We’re at a critical point where savers can make their money work harder for them,” Esmund explained. “But millions risk missing out on valuable tax breaks because they don’t realise the deadline is looming. Managing your financial future doesn’t have to be complicated, but our research shows that many people, especially women, still don’t understand how to maximise their tax-efficient savings.”
Stress and Uncertainty Preventing Savers from Investing
The research also highlights a growing sense of stress and uncertainty surrounding investments, with 70% of adults admitting that nervousness about their finances has led them to hesitate or delay investing altogether.
For many, a lack of experience (20%) or difficulty in choosing the right investments (19%) are the primary factors contributing to this anxiety. As a result, some people are prioritising immediate financial concerns such as holidays (30%) or home improvements (20%) over investing in their future.
Esmund said: “While we understand that investing won’t always be at the top of everyone’s list, shying away from it due to stress or confusion can severely limit long-term financial growth and security. It’s vital that we break down these barriers and offer guidance to help people feel more confident in managing their money.”
A Call for Action Ahead of the Tax Year End
With the tax year deadline on the horizon, Esmund is urging Brits to act now. “If you’re thinking about contributing to an ISA or pension, now is the time to do so,” she said. “Failing to make use of these allowances could mean leaving money on the table.”
To help, ii has provided a simple checklist for savers to ensure they maximise their tax-efficient options before the end of the tax year:
- Top Up Your ISA: Ensure you’ve used your full £20,000 allowance for the current tax year before the deadline.
- Save for Your Children: Open a Junior ISA to begin saving for your child’s future, whether it’s for university fees or their first car.
- Make Pension Contributions: The tax year end is a good time to review your pension and make any last-minute contributions, especially as unused allowances can be carried forward for up to three years.
- Use Your Capital Gains Tax Allowance: The £3,000 tax-free allowance resets on April 6. If you have shares outside of tax wrappers, consider selling before the deadline to use up your exemption.
- Dividend Savvy: For investments outside ISAs or SIPPs, make sure you’re aware of the £500 personal dividend allowance and consider using your ISA for investments where you can benefit from unlimited dividends.
As the tax year end draws near, Esmund is keen to remind savers that the deadline is not just a date to be aware of, but an opportunity to take action and set themselves up for future financial success. “We want to remove the stress from investing and help people take advantage of tax-efficient opportunities before it’s too late,” she said.
