Whether you’re in need of some extra cash to feed a growing family or wish to retire early and securely, effective tax planning can help you to achieve your personal finance goals.

Here are some ways you can manage your personal taxes in 2025.

Work-related expenses

If you incur work-related expenses in the course of your job, you may be able to claim tax relief. You can claim tax relief on flat rate expenses if you’re employed by someone and you clean your work uniform and/or you spend your own money on repairing or replacing equipment you need to do your job.

The amount you can claim depends on your job and the industry you work in.

If you are travelling in your own car for business purposes, and your employer is not reimbursing you, you may be able to claim a deduction from your income. However, you cannot claim tax relief for travel between your home and your permanent place of work.

You can claim additional tax relief for subsistence if the expenditure is incurred through business travel or an overnight business trip.

Additionally, you can claim tax relief on personally paid professional membership fees or annual subscriptions to approved professional bodies or learned societies if being a member of that body or society is relevant to your job.

Make full use of your pension benefits

There are a range of pension tax reliefs available.

For example, through your Annual Allowance, you can invest up to £60,000 into your pension pot tax-free.

Additionally, you can draw up to 25 per cent from a personal pension tax-free once you are 55.

You can also claim tax relief on workplace pension contributions, and exchange some of your salary in return for a larger pension contribution made by your employer. Make sure HM Revenue & Customs (HMRC) is aware of any additional workplace pension contributions you make each year.

From 6 April 2028, the minimum pension age will increase to 57.

Careful tax planning is advised to help mitigate any impacts on your retirement plans.

Gifts to charity

If you’re claiming tax back through your Self Assessment tax return or by asking HMRC to amend your tax code, keep records showing the date, the amount, and which charities you’ve donated to.

Marriage benefits

The Marriage Allowance allows you to transfer £1,260 of your Personal Allowance to your basic rate taxpaying spouse or civil partner, reducing their tax bill by up to £252 in the tax year.

Inter-spouse transfers are another effective way of reducing your tax liabilities. Individuals with an annual income between £100,001 and £125,140 can maximise capital gains and income tax rates and allowances through these exempt transfers.

Children

Child benefits provide a range of benefits beyond a regular allowance for each child.

By claiming child benefits, you’ll receive National Insurance credits which count towards your State Pension, as well as ensure that your children receive a National Insurance numbers without them having to apply.

For your eldest or only child, the weekly rate is £25.60. For any additional children, the rate is £16.95 per child.

However, if you or your partner has an income exceeding £60,000, child benefit payments are reduced – and they are withdrawn entirely if your income is more than £80,000.

There are also a range of reliefs to support the cost of childcare. Families with an adjusted net income of less than £100,000 can claim free hours of childcare – 30 hours per week for children aged three to four years old, and 15 hours per week for children aged 9 months to two years old.

Personal tax planning with Rotherham Taylor

At Rotherham Taylor, we provide a comprehensive personal tax planning service that is specifically tailored to the needs of individual clients.

We’ll minimise your tax liabilities whilst ensuring you remain compliant.

For expert advice on personal tax planning, get in touch with our tax team today.