Five financial jobs you should do in February

With 2025 well under way and the end of the tax year getting closer, there are some financial jobs you can do this month to save on tax and potentially boost your pension. 

Whether it’s plugging gaps in your National Insurance record, booking a free financial planning session or using your partner’s tax allowances, here’s what you may want to consider doing this month. 

What’s on this page? 

1. Book a free financial planning session
2. Top up National Insurance contributions to boost your pension
3. February tax planning: give your partner a cash gift
4. Pay your tax bill
5. Beat the stamp duty rise

1. Book a free financial planning session

Free one-hour introductory financial planning sessions are being offered throughout the UK in late January and early February. It’s part of Financial Planning Week, an annual campaign organised by educational charity and professional body the Chartered Institute for Securities & Investment (CISI). This year, Financial Planning Week takes place from 27 January to 2 February.

The campaign aims to help people to improve their relationship with money and understand their finances. Tracy Vegro, chief executive at the CISI, says it’s never too late to seek guidance or simply reassurance on your financial plans.

“As happily we are all living longer as a nation, retirees need to always keep their financial plans under review. Policies and tax rules are often changed, as with the recent Budget in 2024. Financial planning has taken on ever-greater importance in recent years, given the costs of caring for older loved ones and lifestyle choices about multi-generational support,” she adds.

Find certified financial planners taking part at the Wayfinder website (run by the Chartered Institute for Securities & Investment, or CISI). The website also has various tips and tools, such as a budget planner and savings calculator.

2. Top up National Insurance contributions to boost your pension

You need at least 35 years of National Insurance contributions to get the full state pension and at least 10 years’ worth to qualify for any state pension at all. Check your state pension forecast at gov.uk to see your National Insurance record and whether you are on track to get the full amount.

You can fill gaps in your National Insurance record by ‘buying back’ years. You can also top up years where you were short on the minimum amount needed to qualify as a full year’s contribution.

Typically you can only fill gaps in your National Insurance record for the previous six tax years. But you can currently make voluntary contributions for the April 2006 to April 2017 tax years.

The deadline for doing this is 5 April 2025, so act soon if you want to top up these years and give your National Insurance record a boost. It costs around £800 to pay for a full year of National Insurance contributions, or less if you have already made a partial payment that tax year.

• We'll soon be publishing an in-depth guide to filling in gaps in your National Insurance record - we'll update this page when that happens.

3. February tax planning: give your partner a cash gift 

If you’re in a trusting relationship, consider giving your partner money to make sure you are benefiting from all the tax allowances available. Topping up your spouse or partner’s pension or ISA might not be the most traditional Valentine’s Day gift, but it could make financial sense, says Claire Exley, head of financial advice at digital wealth manager Nutmeg.  

For example, each person has a total annual ISA allowance of £20,000. That means £40,000 per household if couples are able to make use of both allowances. This is particularly valuable if you might otherwise need to pay tax on some of your savings interest. (The tax-free threshold for interest is £1,000 a year, or £500 for higher-rate taxpayers.)  

You can also pay up to £60,000 into a pension each year and benefit from tax relief, so consider using a partner’s pension allowance for further tax relief if you are a high earner. In addition to giving their pot a boost, it could also make planning your joint retirement income more tax-efficient (for example allowing you to take advantage of both sets of tax allowances).

Exley says: “Contributing to your partner’s ISA could help to reduce your overall capital gains tax bill. Pension contributions can help to maximise higher rates of pension tax relief or ensure you stay on track to build the retirement pot you want if you’ve taken a break from work, for example to raise children.” 

• Read more about how you can pay less tax on your savings.

4. Pay your tax bill

You should have filed your tax return and paid any tax you owe before 31 January. But if you’ve forgotten, it’s important you settle your bill by the end of February. You’ll have received a £100 automatic fine for late payment if you missed the 31 January deadline.

If taxes owed for the 2023/24 tax year are not paid in February, a 5% penalty on what you owe will also be charged. You’ll also pay interest on the amount owed, which is currently 7.25% a year (the Bank of England base rate plus 2.5%).

For example, if you owe £3,000 in tax that you pay late on 5 April 2025, you’ll be charged a penalty of £150 plus interest of £37.54, taking the total you owe HMRC to £3,187 (not including the initial automatic fine of £100).

You can estimate your penalty for late self-assessment tax payments using this government calculator.

If you can’t afford to pay your tax bill, make sure you let HMRC know – they may be able to help you set up a payment plan.

Robert Salter, a director at Blick Rothenberg, adds that if you are expecting a tax refund from HMRC and it hasn’t been paid yet, you should consider chasing this refund with HMRC.

5. Beat the stamp duty rise

If you’re in the middle of a house purchase in England or Northern Ireland, you may want to push to complete before stamp duty changes come into effect at the start of April. Bear in mind that average residential property transaction takes between 12 and 16 weeks to complete, but can sometimes take longer.

The new rates are a return to the previous thresholds which were temporarily raised in 2022.

From 1 April 2025, the threshold at which stamp duty is due returns to £125,000, from the current threshold of £250,000, in England and Northern Ireland. You’ll pay an extra 2% stamp duty on this £125,000 difference if you complete in April or beyond. As an example of how the extra charge works in practice, if you’re buying a house worth £500,000 you’d currently pay £12,500 in stamp duty. From 1 April, the stamp duty bill would rise to £15,000.

For first-time buyers, the stamp duty threshold drops to back £300,000 from its current rate of £425,000 from 1 April. First-time buyers buying a house worth £500,000 would currently pay £3,750 in stamp duty, but from 1 April, they will pay £10,000 in stamp duty.

Scotland has the Land and Buildings Transaction Tax (LBTT) and Wales has the Land Transaction Tax (LTT). Rates are not increasing in these regions from 1 April, as they have already increased recently.

Jobs to do: Checklist 

• Consider booking a free financial planning session as part of Financial Planning Week 
• Check whether it’s worth filling gaps in National Insurance contributions 
• Make use of your spouse or partner’s tax allowances 
• Pay your tax bill 
• Beat the stamp duty rise