In the latest Financial Matters column, Fairhurst Accountants spotlight personal and family tax planning

There are numerous ways to use certain tax reliefs to your advantage and in this article we focus on personal and family tax planning.

Consider transferring unused personal allowance

Married couples and civil partners can transfer 10 per cent of their personal allowance between them (£1,260 for 2026/27), providing a small overall tax saving for the couple if the transferor cannot use the full amount of the allowance.

The transfer is not available if the recipient pays tax at a rate higher than the basic rate of 20 per cent.

Claims can be backdated for up to four years, so a claim made by 5 April 2027 can include 2022/23.

Check whether the High Income Child Benefit Charge applies

Where the higher earner in a couple has adjusted net income over £60,000, the High Income Child Benefit Charge may apply.

The charge is calculated as one per cent of the Child Benefit received for every £200 of adjusted net income above £60,000.

Once adjusted net income reaches £80,000, the charge is equal to 100 per cent of the Child Benefit received.

The charge is normally reported through Self-Assessment.

However, if you are employed and do not otherwise need to complete a tax return, you may be able to arrange for the charge to be collected through your PAYE tax code.

Any Self-Assessment registration or filing obligation should be dealt with by the relevant January 31 deadline following the end of the tax year.

If you want to avoid receiving payments that may later be clawed back, you can opt out of Child Benefit payments while keeping the claim open.

This helps protect the claimant’s entitlement to National Insurance credits and state pension entitlement.

If the higher earner’s adjusted net income later falls below £60,000, you can ask HMRC to restart Child Benefit payments.

Don’t delay, as it can take up to 28 days before you get your first payment!

You may also wish to review the following areas:

• Checking that your PAYE code is correct

• Reviewing how much National Insurance Contributions (NICs) you pay

• Topping up your state pension entitlement

• Checking whether payments on account due in January and July are still appropriate

If you need help navigating the complexity of tax rules and would like to create more efficient tax plans please contact your accountant.