Beat the budget: a five-point action plan to help you manage your cash

For those living within their means, budget season is coming – and this year's financial framework has several surprises to consider. In an effort to mitigate its impact on personal finances, here are five key actions you can take.

Firstly, make the most of your ISA allowance. With a £20,000 annual limit, it's essential to use as much of it as possible in the 16 months leading up to changes in April 2027. Once money is in an ISA wrapper, you'll be able to move it around each year and earn interest without tax.

Next, consider switching shares to an ISA to avoid a rise in income tax on dividends. From April 2026, the ordinary rate will increase from 8.75% to 10.75%, while the upper rate goes from 33.75% to 35.75%. If you switch your investments into an ISA as long as you have enough of your £20,000 allowance left, you can avoid these increased tax rates.

Reviewing salary sacrifice is also crucial. While this benefit will be reduced after April 2029, it remains a good option if your employer still offers the scheme. This could allow you to boost your pension contributions while avoiding national insurance payments on sums above £2,000 a year.

Making the most of gift allowances can help with inheritance tax (IHT). The Chancellor has extended the freeze on IHT thresholds until April 2031, so it's essential to consider how much you can give away without being added to your estate. There are various allowances available, including the small gift allowance and potentially exempt transfers.

Finally, weigh up the impact of the new "mansion tax" – a high-value council tax surcharge that will apply to properties in England worth over £2m. While this may seem daunting, you have almost three-and-a-half years to consider your options. Moving home can be costly, and bringing forward plans to downsize might be the best way to avoid the new tax.

Ugh, budget season is just around the corner ! Reminds me of when I used to work on my parents' old Ford Cortina , trying to scrape together enough pennies for a petrol tank refill. But, you know, at least back then it was just about making ends meet, not dealing with fancy tax rates and ISA wrappers .

Anyway, I think the key is to plan ahead – use up that £20k ISA allowance while you can ️, and don't forget to review those salary sacrifice schemes before they get axed in 2029 . And, yeah, maybe consider downsizing if you're near that £2m mark for council tax – it's not the end of the world, but it might sting a bit .

Still can't believe we've got to worry about inflation and interest rates again... feels like just yesterday I was stressing about exam fees and student loans .

I'm tellin' ya, budget season is like the end of the world ! Everyone's all stressed about savin' their pennies and whatnot. But for me, I remember when you could just put your money away in a savings account and earn interest without any fuss . Nowadays, it's all about ISAs and shares and tax rates... it's like they're speakin' a different language!

Anyway, I guess the key is to make the most of those ISA allowances and switch your investments over to avoid gettin' caught with higher tax rates. And don't even get me started on salary sacrifice – it's like they're tryin' to take away our hard-earned cash .

But you know what's still good? Gift allowances! It's like, you can give your loved ones some money without worryin' about gettin' stuck with a big tax bill . And now there's this new "mansion tax" thingy... I'm not sure what to make of it, but if it means people are thinkin' about downsizin' their homes, that's a good thing in my book .

Oh, and one more thing – I wish they'd just simplify things a bit! It feels like we're constantly tryin' to juggle all these different financial rules and allowances... can't we just have one set of straightforward rules?!

Umm I think making the most of that ISA allowance is a good idea but what if you already got one? Like, if you've already put some money in an ISA last year and now it's almost full... shouldn't that be better than using it all up next year? And switching shares to an ISA just 'cause tax rates are going up seems kinda like putting a Band-Aid on the problem rather than addressing the root cause, you know?

I'm a bit skeptical about the ISA allowance thing . £20,000 is a pretty big chunk of change, and I don't think it's that hard to find ways to use some of it up each year. Plus, with inflation rates still kinda high, maybe we should be focusing on investments that'll actually increase our wealth rather than just moving money around in tax-efficient wrappers

I'm so confused about this whole budget season thing... like, I get that we should use our ISA allowance and switch shares and stuff, but why do we have to think about it all 16 months in advance? And what's with the increased tax rates on dividends? Are they trying to, like, really squeeze more money out of us or something? But at the same time, reviewing salary sacrifice and making the most of gift allowances makes total sense... but don't we need a better system that doesn't have so many rules and exceptions? And what's up with this "mansion tax" thing? Like, I get it, councils need money too, but £2m is just ridiculous... Maybe I'm being too harsh, maybe it's all good in the end... who knows, right?

the thing is, if you're already living within your means, it's like, super smart to make the most of those ISA allowances . using up that £20k in 16 months will give you some serious breathing room when the rates change in 2027. and switching shares into an ISA before the tax rates go up sounds like a no-brainer ... but i'm not sure about this "mansion tax" thing... like, is it really worth considering downsizing if you're happy in your home?

I'm not a fan of these new tax changes, but if it means we get more control over our own finances, I guess its gotta happen . I've got friends who own multi-million pound homes and they're already stressing about how this is gonna affect them. Downsizing might be the way to go... but where's the appeal in that?

I don’t usually comment but... I feel like we're being super cautious about our finances now that we know this 'mansion tax' is coming . Like, I get it, we should think about downsizing if we can afford it, but what if people can't sell their houses for a million quid? What if they have to move somewhere cheaper and have to pay more in council tax? It just seems like another layer of complexity to our lives...

I think it's crazy how many people are still living paycheck to check ! Budget season is coming and everyone should be preparing for it. But seriously, using that ISA allowance before April 2027 can make a big difference . And don't even get me started on the mansion tax ... if you're in the market for a new place, now might not be the best time to buy .

so thinkin about budget season comin up gotta make the most of that £20k ISA allowance ASAP like use it all in 16 months before april 2027 if you got enough room review salary sacrifice too might be a good way to boost pension contributions without payin national insurance above £2000 a year and omg mansion tax that's gonna hit properties worth over £2m hard what's the best way to avoid it? maybe bringin downsize plans forward

I'm a bit worried about the mansion tax coming in . £2m is a lot of money and I can imagine it's not just a matter of buying a fancy house, you gotta think about the cost of living after that kind of shift . Maybe people will need to rethink their big moves or consider downsizing instead? The extra £200+ a year for such a pricey property doesn't seem like a lot but I guess it adds up .

think they're gonna hit us with a mansion tax on homes worth over 2m?! that's like, super rich lol what's the point of even having that kinda cash if you gotta pay more in taxes just because your house is too big? and what's with all these changes coming in like april 2027 and april 2031? seems like they're trying to keep us on our toes anyway, i guess it's good that they're giving us a heads up about the changes so we can plan ahead... maybe?

I'm not buying into all these tax worries, ya know? Like, if someone's living within their means, why should they care about a few extra pennies in taxes? It's just the government trying to get more cash, right? And what's wrong with people keeping their money in ISAs and earning interest? It's not like it's hurting anyone else. Plus, salary sacrifice is still a great way to boost pension contributions without having to pay too much tax. And let's be real, who doesn't love the idea of giving gifts without worrying about inheritance tax? It's all just part of being an adult, you know? You gotta make some financial decisions and take risks. I say, go for it!

it's kinda weird that they're introducing a "mansion tax" but at least we've got almost 3.5 yrs to prepare i mean, moving home is expensive anyway so maybe it's a good opportunity for people to downsize or find more affordable places? also switching shares to an isa might help with those new income tax rates the £20k limit is pretty generous tho, should be used wisely

Ugh just found out about the 'mansion tax' and I'm already feeling anxious about the future. £2m is such a huge amount of money! Do people really own homes that expensive? It's like, what even is the point of having that kind of wealth? And now they're gonna charge us extra for it? Like, isn't England rich enough already?

I think it's a good idea for people to start thinking about their finances now, 'cause budget season is coming up . I mean, with the changes in April 2027, it's essential to make the most of that £20,000 ISA allowance and not leave any money on the table. And, yeah, switching shares to an ISA before those tax rates kick in could save people some serious cash .

Also, reviewing salary sacrifice is a must, especially since it's going down after April 2029 . But, for those who can, it's still a good option to boost pension contributions and avoid some extra national insurance payments.

As for the mansion tax, I think it's a bit of a wake-up call for people with bigger properties . But, like, three-and-a-half years is plenty of time to think about downsizing or selling up if you want to avoid the new tax. And, honestly, moving home can be super costly, so it's not something to be taken lightly .

I just wish more people would start thinking about their finances sooner rather than later . It's always better to be safe than sorry, right?

budget season is coming and I gotta say, I'm not as excited about it as I used to be back in my retirement days . I mean don't get me wrong, being responsible with your finances is a good thing, but all these tax changes are enough to make an old retiree like me wanna pull his hair out . The ISA allowance is always a good idea, and switching shares to avoid those increased tax rates sounds like a no-brainer . But what really gets my goat is the "mansion tax" - it's just another way for the government to pinch pennies from people who are already struggling . I think we should be focusing on making our homes more affordable, not taxing us even harder .

so like they're trying to help us with budget season which is cool I guess but it's all about managing our finances right? like taking advantage of these ISA allowances it makes sense because you don't wanna get stuck with more income tax than needed and switching shares into an ISA can save you some pennies in the long run

and salary sacrifice is a good option if your employer offers it but I guess we gotta wait until 2029 for that to change which kinda sucks. but on the bright side making the most of gift allowances can help with inheritance tax I mean who doesn't want to avoid leaving their loved ones with a ton of debt?

the mansion tax though is a bit of a bummer it's like they're trying to take away our property rights or something but at least we have almost three years to figure out what to do about it. maybe downsizing could be an option for some people? idk who knows

I'm thinking, if you've got a spare £20k, use it in an ISA already . If not, switching shares to an ISA before 2026 will save u from paying more tax on dividends . Salary sacrifice is still good, but don't forget to check with ur employer 'bout the rules . Gift allowances can help w/ inheritance tax too, so think carefully about what u can give away . And, yeah, that mansion tax might be a thing, so consider downsizing if u're planning 2 move...or just wait it out