As we relax into that magical post Christmas lull, somewhere between the last mince pie and the moment we finally give up trying to remember what day it is, it can be helpful to take a leaf out of the book of the original Three Wise Men.
They travelled with gold, frankincense and myrrh. We travel with leftover turkey, a half finished puzzle, and a determination to find a bit of peace and quiet. But we can still bring some wise offerings to our financial wellbeing as the new year approaches.
Below is a friendly reminder of the simple steps that can make a big difference before the tax year end and help you set up strong foundations for 2025 and beyond.
Before accountants enter their traditional January stampede, now is a brilliant time to gather everything you need for your return.
This includes P60s, certificates of interest, rental statements, investment income, and anything relating to capital gains or losses.
Do not forget to claim higher rate tax relief on any pension contributions you have made.
A quiet hour between Christmas and New Year can save you stress later and help avoid those inconvenient last minute scrambles.
While enjoying the final crumbs of Christmas cake, take a moment to check how your investments have performed this year.
Despite the ups and downs of the markets, performance has generally been encouraging. At IQ, we have enjoyed a strong year and delivered real value for clients, but it is still worth reviewing your full financial picture:
This is the ideal time to consider adjustments while there is still room to act before the tax year closes.
Looking ahead with clarity is one of the best gifts you can give yourself.
Think about whether additional pension contributions, bonus exchanges, or salary sacrifice arrangements could improve your tax efficiency. These can offer meaningful advantages, especially if implemented early.
If you have made charitable donations throughout the year, gather the totals. Both the charity and higher rate taxpayers can benefit from Gift Aid and tax relief, making generosity good for your finances as well as good for the world.
Finally, if you expect to make withdrawals from your portfolio in 2026, let your adviser know in advance. This allows us to support you appropriately and prepare for any market movements, even though the outlook for equities remains reasonably positive.
As we all enjoy the final treats of the festive season and look forward to a fresh year, it is worth taking a moment to balance financial prudence with rest, reflection, and time with the people who matter most.
A little planning now means you begin 2025 on a confident and organised footing, leaving more space for the things that make life rich in the ways that truly matter.
Wishing you a peaceful, prosperous, and joy filled festive season from all of us at IQ
