As we approach the new year, it’s a good time to get organized and plan your finances for 2025. Here’s a month-by-month guide to help you stay on top of essential financial tasks throughout the year.
January: Sort Out Your Self-Assessment Form For those who need to file a self-assessment tax return for the year 2023-24, the deadline is 31 January. While the process is relatively simple and can be completed in about 20-30 minutes, it’s crucial to file on time to avoid penalties. If you owe money and can’t pay in full, HMRC allows you to set up a payment plan for amounts under £30,000.
February: Review Your Pension Take the time to review your pension and assess if you’re on track to meet your retirement goals. If you’re contributing to a defined contribution pension, check your annual statement. If you’re falling short, consider increasing your contributions, especially if your finances are in better shape than the previous year. Don’t forget to search for any lost pension pots using the Pension Tracing Service.
March: Max Out Your ISA Before the end of the tax year on 5 April, ensure you’re making the most of your ISA allowance, which is £20,000 for the year. Using an ISA allows you to shelter your savings from income and capital gains tax. Whether you prefer cash or stocks and shares, it’s wise to shop around for the best rates.
April: Shop Around for Utilities April marks the time when the price cap on domestic energy bills changes. This is a good opportunity to compare energy tariffs and consider switching providers for better rates. Additionally, review your TV, phone, and broadband contracts, as price hikes often occur in April.
May: Prepare for Your Holiday As summer approaches, make sure your passport is valid and check whether you’ll be charged extra fees for using your bank card abroad. Some cards offer no foreign transaction fees, so it’s worth applying for one before your trip.
June: Track Down Lost Accounts June is a great time to check for any lost accounts or investments. Services like My Lost Account and Gretel can help you trace forgotten bank accounts, investments, or child trust funds. This can be an excellent way to recover forgotten savings.
July: Organize Your Paperwork Now that you’ve tracked down your financial accounts, it’s time to get organized. Store important documents such as insurance policies, bank statements, and tax records in a safe place. Keep them for at least 22 months after filing your tax return.
August: Focus on Financial Relationships If you’re getting married or recently married, it’s important to have conversations about money, including debt management and joint finances. For married couples, ensure that your nominated beneficiary details are up to date with your pension provider to avoid complications later on.
September: Start Saving for Your Children or Grandchildren With the school year starting, consider setting up a savings account for your children or grandchildren. Junior ISAs are a great way to save money tax-free until they are old enough to manage it themselves. This is also a good time to review any existing savings accounts for the best interest rates.
October: Review or Write Your Will October is Free Wills Month, where solicitors offer free will writing services to those aged 55 and over. If you already have a will, take this opportunity to review it and ensure that it reflects your current wishes, especially after significant life changes like marriage or the birth of children.
November: Manage Your Credit Card With the holiday season approaching, consider reviewing your credit cards. You may want to transfer any existing credit card debt to a card offering a lower interest rate or use a rewards card to maximize your spending. Some cards offer interest-free balance transfers for up to two years, which can help save money.
December: Donate to Charity Efficiently As the year ends, many people make charitable donations. If you are donating money, consider using Gift Aid to increase the value of your donation by 25%. For those donating goods, signing up for Gift Aid at charity shops can also be beneficial. Additionally, donating shares can provide tax relief for higher-rate taxpayers.
By staying on top of these tasks throughout the year, you can ensure that your finances are in good shape and that you’re making the most of available opportunities.
