As the tax year end on 5th April approaches, many professional athletes and sportspeople take the opportunity to review their pension and ISA planning. For those with fluctuating incomes, short career windows, and complex tax positions, this period is particularly important.
With limited time remaining, careful planning can help ensure contributions are made efficiently, tax allowances are used effectively, and long-term financial security is supported beyond a sporting career. As 5th April falls on Easter weekend this year, Thursday 2nd April will be the Pro Sport team’s last working day before the tax year ends, making early planning particularly important.
Making the most of pension and ISA allowances
Each tax year, individuals can normally contribute up to the annual allowance into their pension in a tax-efficient way. For higher earners, this allowance may be reduced, which makes proactive planning essential.
If previous years’ allowances have not been fully used, it may be possible to carry them forward. This can allow for significantly higher contributions in a single tax year, provided certain conditions are met. For athletes experiencing peak earning years, this can be a valuable opportunity to build long-term wealth. Reviewing contribution history early helps ensure that opportunities are not missed.
A person’s own tax-relievable pension contributions (not employer) are capped at 100% of their earnings (or £3,600 if no earnings) irrespective of how much annual allowance they have available.
In addition to pensions, individuals can contribute up to £20,000 per year into ISAs, which can provide tax-free growth and withdrawals. Planning to maximise both pension and ISA allowances before the tax year end can help athletes make the most of available tax-efficient opportunities.
Timing matters
Pension and ISA contributions must be received by providers before the end of the tax year to count. Leaving contributions until the final days increases the risk of delays, processing issues, or missed deadlines.
For athletes receiving income from multiple sources, including clubs, endorsements, sponsorships, and performance bonuses, careful timing and coordination can be particularly relevant. Planning ahead may help ensure contributions are processed on time and that cash flow is maintained around peak earning periods. Thursday 2nd April is the last working day before the tax year ends, which can make early arrangements beneficial.
Common traps to avoid
Professional athletes often face additional complexities. Common pitfalls include:
- Exceeding reduced pension annual allowances
- Missing carry forward opportunities
- Triggering unexpected tax charges
- Underestimating future income needs after retirement
- Failing to align pension funding with wider financial planning
- Overlooking ISA contribution limits
Avoiding these issues requires a coordinated view of income, tax position, career planning, and long-term objectives.
Get in touch
If you would like support reviewing your pension and ISA funding before the tax year end, the team at Pro Sport can help you assess your allowances, explore pension carry forward allowances, and confirm suitable contribution levels through a tax year end review.
To arrange a discussion, contact the Pro Sport team at enquiries@prosportfinancial.co.uk or call 0161 989 3030.
Please note
The Financial Conduct Authority does not regulate tax advice. This article is for information only and does not constitute advice. A pension is a long-term investment not normally accessible until age 55 (57 from April 2028 unless the plan has a protected pension age). The value of your investments (and any income from them) can go down as well as up which would have an impact on the level of pension benefits available.