Love and Taxes: A Match Made in Financial Planning

With the new UK tax year starting on 6 April 2025, now is the perfect time to get your financial affairs in order. And with Valentine’s Day just around the corner, it’s a reminder that both love and good financial planning thrive on communication, commitment, and a little foresight.

Key Changes in the New Tax Year

Like any long-term relationship, the tax system evolves over time. Here are some important changes to be aware of:

1. National Insurance Changes: From 6 April 2025, employer National Insurance contributions will increase from 13.8% to 15%, while the earnings threshold for contributions will drop from £9,100 to £5,000.
2. Stamp Duty Adjustments: The stamp duty threshold for primary residences will revert to £125,000, and for first-time buyers, it will drop to £300,000.
3. Income Tax Thresholds: Income tax thresholds will remain frozen until 2028, meaning more of your income could be taxed as wages rise.
4. Inheritance Tax (IHT) Changes: The IHT threshold will stay frozen until 2030, which could lead to higher tax liabilities as property values increase.

The Gift of Giving: Charitable Contributions

Valentine’s Day is all about showing you care, and charitable donations offer a way to do just that—while also benefiting your tax position. Donations to eligible charities can be deducted from your taxable income, meaning you can support causes close to your heart while reducing your tax bill.

Keeping the Spark Alive in Your Finances

A strong financial plan, like a great relationship, is built on shared goals and thoughtful planning. Here’s how to keep your finances—and your future—on the right track:

• Set Financial Goals Together: Whether you’re saving for a dream holiday or planning for retirement, aligning your financial goals can bring you closer and reduce stress.
• Budget for Romance and Reality: A well-planned budget should balance everyday essentials with the things that bring you joy—whether it’s date nights, holidays, or spontaneous surprises.
• Check In Regularly: Just as relationships need communication, your financial plans should be reviewed and adjusted regularly to keep up with life’s changes.

Love and Finances: The Perfect Partnership

Love and money might not seem like the most romantic pairing, but both thrive on trust, planning, and a long-term perspective. By staying informed and organised, you can step into the new tax year with confidence—leaving more time for what truly matters.

Ready to Tackle Your Tax Planning?

As Valentine’s Day reminds us of the importance of care and attention, the same goes for your finances. With the new tax year approaching, now is the perfect time to get your accounts in order. If you need help navigating these changes and ensuring your finances are set up for success, our team of expert accountants is here to support you. Get in touch today to book a consultation and make sure your tax planning is as smooth as possible for the year ahead.