As a profit consultant we are always looking to save money and with Valentines Day we thought how can we help couples.

This Valentine’s Day, why not show your love for both your partner and your finances? Couples can take advantage of several tax strategies in 2025 that can reduce your tax bill and help build a brighter financial future together. Here are some quick tips for couples to make the most of the upcoming tax year.

 Maximise Pension Contributions Together

Pension contributions are a powerful tool to reduce taxable income. For the tax year to 5th April 2025, each partner can contribute up to £60,000 into their pension, or 100% of their earnings, whichever is lower. (The £60,000 allowance is reduced to an amount between £10,000 and £60,000 if you earn over £200,000). Contributions are tax-free, so it’s a great way to save for retirement while reducing your taxable income. If your spouse has no earnings, they can still pay £2,880 net into a pension scheme and get tax relief on it. Consider contributing to both your own and your spouse’s pension to boost both savings and tax relief.

Make the Most of Marriage Allowance

If one partner earns below the personal allowance threshold (£12,570 for the tax year to 5th April 2025), you can transfer up to £1,260 of unused allowance to your spouse. This could reduce your overall tax bill by up to £252. Check if you qualify for Marriage Allowance and apply online to make sure you’re getting the most out of your tax-free allowance.

Gift Tax-Free to Your Loved Ones

Couples have an annual tax-free gift allowance of £3,000 each in the tax year so between them they can gift £6,000 without it being added to the value of the estate for inheritance tax purposes.  If you didn’t use your allowance last year, you can carry it forward one year. This makes it easier to pass on wealth to family members without worrying about taxes. Consider gifting money to children or family members, or contributing to their savings or investments, tax-free.

 Plan Ahead: Tax Relief for Savings

Couples can also benefit from tax-efficient savings accounts, like ISAs. In the tax year to 5th April 2025, each partner can contribute up to £20,000 to their individual ISAs, meaning a couple could save £40,000 in tax-free growth for the year. This is an excellent way to grow your wealth without worrying about tax. Make sure both of you are using your full ISA allowance to maximise tax-free savings.

This Valentine’s Day, as you celebrate love, consider making tax-smart choices that will benefit your finances throughout the year. By taking advantage of these strategies, you and your partner can reduce your tax liability and build a more secure financial future together.

If you need expert tax advice or assistance, our team is here to help. Whether you’re looking to optimise your tax filings or plan for the year ahead, we offer tailored support to suit your unique financial situation. Contact us today at [email protected] to get started. We’re here to ensure you make the most of your finances!

Happy Valentine’s Day, and here’s to a tax-efficient year ahead from your profit consultants.