The end of the tax year usually sneaks up on doctors and dentists. Between clinical pressures, administrative demands, and, for many, private practice responsibilities, financial planning can easily slip down the priority list. However, the weeks leading up to 5 April 2026 present a valuable window to take stock, make adjustments, and ensure all available reliefs are utilised.
This does not constitute advice and advice should be sought in all instances before acting on it. The Financial Conduct Authority does not regulate tax advice. Tax treatment depends on the individual circumstances of each client and may be subject to change in the future.
This article was approved by Best Practice IFA Group Limited on 26 February 2026.
In our experience, the strongest outcomes tend to come from conversations held in February or early March. Leaving decisions until the final days of the tax year can restrict your options, particularly where calculations, contribution limits, or provider processing times are involved.
Making the Most of ISA Opportunities
ISAs will always be an important part of tax-efficient planning. In 2025/26, individuals can contribute up to £20,000 across cash, stocks and shares, Lifetime ISAs, or innovative finance ISAs. Investments held within an ISA are free from personal liability to income tax and capital gains tax, making them a useful complement to NHS pension benefits and other long-term savings.
For some clinicians, ISAs offer flexibility that pensions do not, particularly if early access to capital may be required. If you have made withdrawals from a flexible ISA during the tax year, it may be possible to replace those funds without reducing your allowance, provided certain conditions are met. Reviewing ahead of time avoids accidental loss of entitlement.
Junior ISAs are also worth revisiting. The £9,000 annual allowance per child provides a structured way to build funds for the future, whether for university costs or a first property. Contributions from family members can be coordinated to maximise the allowance before the tax year closes.
Strategic Review of Pension Contributions
Pension planning can be more complex for NHS professionals. Defined benefit accrual within the NHS Pension Scheme, additional private pensions, fluctuating income, and tapering rules may all need to be taken into consideration.
For 2025/26, the standard annual allowance is up to £60,000, inclusive of personal and employer contributions. However, higher earners may be subject to tapering, and those who have flexibly accessed defined contribution pensions may face further restrictions. Additionally, tax relief on personal contributions is limited to your taxable earnings for the year.
Where allowance has not been fully used in the previous three tax years, carry forward may be available. Calculating this accurately — particularly where NHS pension growth is involved — takes time and careful analysis, ideally done by a professional. Starting the process early helps ensure that any additional contributions are both appropriate and achievable before 5 April.
For some, pension contributions can also help manage income thresholds. Earnings above £60,000 can reduce or eliminate Child Benefit, while income over £100,000 leads to the personal allowance being tapered. In certain circumstances, increasing pension contributions may reduce adjusted net income and soften these effects, although this should always be considered in the context of overall retirement planning.
Capital Gains and Estate Planning Considerations
The capital gains tax allowance for 2025/26 stands at £3,000. Since you can’t carry any unused allowance forward, consider realising gains within the current tax year. Transfers between spouses or civil partners can sometimes allow both allowances to be used effectively.
Inheritance tax planning should also be reviewed periodically rather than deferred indefinitely. The £3,000 annual gifting allowance can gradually reduce the value of an estate, and unused allowance can only be carried forward for one year. Additional exemptions, such as small gifts or gifts made from surplus income, may also be relevant depending on personal circumstances.
Finally, don’t forget to check pension death benefit nominations. Changes in family circumstances or personal wishes can mean earlier nominations no longer reflect current intentions.
Planning Early, Not Urgently
Many tax-efficient opportunities disappear at the end of every tax year if not used. Arranging contributions, reviewing calculations, and ensuring funds are received by providers all take time.
Tax-year-end should be a considered review point, not a last-minute scramble.
Dental & Medical Financial Services encourages our clients to get in touch well ahead of the year end deadline to assess their position and ensure available tax reliefs are fully utilised before they are lost. Proactive planning now can make a meaningful difference to your long-term financial security, so get in contact today.
