New Year, New You, Same Tax Bill (Unless You Read This)

It’s New Year’s Day.

The fireworks have faded.

The gym membership has been purchased.

The air fryer is back on the counter.

And somewhere deep in HMRC’s systems, your tax position remains completely unimpressed by your resolutions.

Every January, Britain collectively vows to:

• Eat less

• Move more

• Save money

  
  

And every January, the tax system quietly waits for us to forget all three.

So in the spirit of actually sticking to a resolution for once, here are some simple, sensible and surprisingly painless ways UK taxpayers in 2026 can be more tax-efficient, without needing a spreadsheet, a personality transplant, or a Cayman Islands PO Box.

Resolution #1: “I’ll Save More This Year” (But Make It Tax-Efficient)

Saving is great.Saving without paying unnecessary tax is even better.

ISA: Still Boring, Still Brilliant

ISAs remain the most socially acceptable tax shelter in the UK.

• No tax on interest

• No tax on dividends

• No tax on gains

• HMRC can’t touch it (politely or otherwise)

If you’re saving or investing outside an ISA while you still have allowance left, that’s less “financial planning” and more “voluntary donation to the Treasury”.

New Year action: Automate monthly ISA contributions so Future You doesn’t spend it on oat-milk lattes.

Resolution #2: “I’ll Be More Grown-Up With My Pension”

Every January, pensions briefly trend because someone posts “free money from your employer” and everyone panics.

They’re not wrong.

Pensions remain one of the most powerful tax tools in the UK:

• Contributions reduce taxable income

• Growth is tax-free

• Employers often add money (actual magic)

Yes, pensions are less exciting than crypto.But crypto doesn’t give you tax relief and free employer cash.

New Year action: Increase contributions by 1%. You’ll barely notice. HMRC will notice. And not in a fun way.

Resolution #3: “I’ll Stop Ignoring My Pay Slip”

Most Brits look at their payslip like it’s ancient Latin.

But small tweaks can make a real difference.

Salary Sacrifice: The Unsung Hero

Depending on your employer, salary sacrifice can help you:

• Pay less income tax

• Pay less National Insurance

• Boost pensions or benefits

Common sacrifice options include:

• Pension contributions

• Electric vehicles

• Childcare benefits (where available)

New Year action: Actually read your benefits portal. Yes, it’s dull. Yes, it saves money.

Resolution #4: “I’ll Finally Deal With My Side Hustle”

Selling on Vinted. Freelancing. Content creating. Dog walking. Candle making.

It’s not “just a hobby” once money is involved - HMRC is famously humourless about this.

That said, good planning can soften the blow.

• Track income properly

• Claim legitimate expenses

• Understand when you might need to register or change structure

The tax system isn’t trying to punish side hustles - but it does expect you to show up with receipts.

New Year action: Get organised before the January deadline panic next year.

Resolution #5: “I’ll Stop Giving HMRC Tips”

Many people overpay tax simply by:

• Not claiming allowances

• Leaving savings unwrapped

• Forgetting old pensions

• Guessing instead of checking

HMRC doesn’t send thank-you cards for overpayments.

New Year action: Spend one afternoon reviewing your finances. One. Afternoon. That’s it.

Final Resolution: Do One Thing (Not Everything)

You don’t need a 47-point tax strategy.You don’t need offshore trusts.You don’t need to “beat the system”.

You just need to:

• Use the allowances you already have

• Make one small improvement

• Stop letting tax efficiency be a “next year” problem

Because nothing says New Year, New Me quite like legally keeping more of your own money.

And unlike the gym membership, this resolution actually pays off.

Happy New Year - and may your returns be low and your take-home high 🎉