Millions of people will be affected by a range of savings, investment and tax changes that take effect in just under a year’s time.

“April 2027 may feel some way off, but when it comes to financial planning, a year is not a long time,” says Jason Hollands at the wealth management firm Evelyn Partners.

“The changes on the horizon are significant and, for many people, will require a rethink of strategies that may have been in place for many years,” he adds. “The key message is not to wait. The sooner people start reviewing their plans, the more options they are likely to have.”

Here, we look at things you can do now that will hopefully put you in a better place financially.

Cash Isas

What’s happening? Every tax year you can save up to £20,000 in one Isa or split the allowance across multiple Isas, putting as much of that as you want into either cash or stock and shares.

From 6 April 2027, the rules on where the money can go will change for anyone aged under 65. Instead of being able to put all of the money into a cash Isa, that element will be capped at £12,000. Anything you pay in above that will have to move into a stocks and shares Isa.

If you are 65 or over, all £20,000 can still be put into a cash Isa.

What should I do now? If you are aged 18 to 64, this is the final year you can put the full allowance into a cash Isa.

“This is a bit of a ‘use it or lose it’ moment for cash Isas,” says Clare Stinton at the investment platform Hargreaves Lansdown. “The countdown is on.”

This is a good time to do an audit of your savings and ensure you are fully utilising your 2026-27 Isa allowance. Perhaps you have some old non-Isa accounts you haven’t looked for a while? You might want to move some, or all, of this money into an Isa. Easy-access cash Isas now pay up to about 4.5%.

Interest earned outside an Isa is subject to tax once you go over your personal savings allowance. This is £1,000 for basic-rate taxpayers and £500 for higher-rate taxpayers, and up to £5,000 if you earn less than £17,570 a year. And higher taxes on savings income are on the way, too (see below).

Even though the allowance is falling next year, money saved into an Isa will remain tax free, plus you can move it around to new Isa deals, as long as you choose ones that accept transfers in.

“Setting up a monthly direct debit into your Isa is a simple – and non-taxable – move that makes a big difference,” says Stinton. “Whether you’re aiming to max out your £20,000 allowance or just save what you can, paying in regularly spreads the cost and smooths your cashflow.”

Tax on savings and property income

What’s happening? The government is bringing in higher taxes on savings income and property income to “narrow the gap” between tax paid on work and that paid on income from assets.

From 6 April 2027, income tax rates on savings and rental income will be increased by 2 percentage points.

After the changes, basic-rate taxpayers will pay 22% on interest or property income, higher-rate taxpayers 42%, and additional rate taxpayers 47%, after any allowances have been used.

What should I do now? For many savers, the incoming higher tax rates make it more vital than ever to (wherever possible) shelter cash inside an Isa.

“In a higher-tax environment, how you structure your savings will become even more important than it is now,” says Hollands.

There are simple steps people can take that can make a meaningful difference when it comes to maximising tax efficiency, he adds. These include ensuring both partners’ Isa allowances are being used, and holding most or all of the family’s cash savings in the name of a lower-taxed spouse.

For some, premium bonds arguably offer a good alternative to cash deposits as any prizes you win are free from income tax and capital gains tax. You can invest up to £50,000 in premium bonds; the annual prize fund rate is now 3.3%.

For buy-to-let landlords, next year’s higher income tax rates on rental income are the latest in a series of changes.

“Many landlords are reassessing their position,” says Hollands. “While options such as transferring ownership between spouses or incorporating portfolios into company structures may help in some cases, these decisions are complex and need careful consideration … Some property investors may simply decide to sell up.”

Making Tax Digital

What’s happening? You’ve probably heard about Making Tax Digital, which is a major shake-up of the self-assessment tax system. It’s a new way for sole traders and landlords to report their income and expenses to HM Revenue and Customs (HMRC). It affects self-employed people and those who have property income above a set threshold.

Making Tax Digital kicked off this month, and in this tax year the threshold is £50,000.

However, in a year’s time, on 6 April 2027, it will fall to £30,000 for self-employment and property income earned in the 2025-26 tax year.

What should I do now? If you think you might be affected by the £30,000 threshold, HMRC has lots of videos and webinars on how to get ready and choosing the right software to use.

Many experts say that using a separate account for income and spending related to your business greatly reduces the number of transactions you need to categorise for HMRC. So if you haven’t already, consider opening a current account you use just for your business. Mettle, a digital banking brand owned by NatWest, offers a free business account for sole traders and landlords that is highly rated.

In February, Guardian Money carried a comprehensive report on the changes and what people can do.