New tax year 2026-27: five simple ways to get your money moving

• The power of starting early: ISA millionaires are early birds. 28% of total 12-month subscriptions from interactive investor's ISA millionaires were added between 6 and 30 April 2025
• interactive investor research* reveals Brits’ ‘penny drop moments’ which inspired them to take more action with their investments  

As we enter a new tax year, interactive investor (ii), the UK’s leading flat-fee investment platform, is encouraging savers and investors to use the reset as a moment to take action, rather than waiting for the “perfect” time.

• Invest with ii: Open a Stocks & Shares ISA | ISA Investment Ideas | Transfer a Stocks & Shares ISA

While the backdrop remains challenging with rising bills continuing to stretch household budgets, for many people the priority right now is simply keeping on top of day-to-day costs. But for those who can put something aside, even in small amounts, the new tax year still offers a useful opportunity to take stock, reset habits, and make their money work a little harder over time.

Money worries continue to weigh heavily, with more than half (53%) of UK adults feeling stressed about their personal finances, and 51% feeling stressed about investing. These figures highlight just how easy it is to feel stuck or unsure where to begin.

What was your ‘penny drop moment’ when investing?

However, interactive investor asked savers what their ‘penny drop moment’ was when it came to their investment approach, and the results are thought-provoking. The below shows when something about investing suddenly clicked for investors… prompting them to take action.

• Almost one quarter (23%) realised they didn’t need a large lump sum to get started
• 22% said understanding how finances like tax allowances work, and how much a small amount of money can grow over time
• Around one in five (21%) said someone they trust explaining it simply
• Around one in five (21%) realised inflation means money sitting in cash can lose value over time

Camilla Esmund, senior manager at interactive investor, says: “The start of a new tax year can be a helpful moment to pause and take stock, but it’s important to recognise that this will look different for everyone.

“For many people, the focus right now is on managing rising costs and keeping things steady day to day. But if you are in a position to put something aside, even small amounts, this reset can be a good opportunity to build momentum over time.

“Often, it’s a small ‘penny drop’ moment that gets people started, whether that’s realising how much an allowance is worth or understanding that you don’t need a large lump sum to begin. Those moments can turn something that once felt distant into something manageable.

“Starting to use your allowance early gives your money more time to grow and helps build a habit of investing consistently, which is where real progress is often made.

“In uncertain markets, it’s easy to feel tempted to sit on the side-lines. But investing isn’t about reacting to every headline, it’s about taking a long-term view and doing what you can, when you can.”

Here are five simple ways to make the most of the new tax year

1) Start early and let time do the heavy lifting

Esmund adds: “Starting early in the tax year gives your investments longer to grow and benefit from compounding, where your returns start generating their own returns over time.

“That doesn’t mean you need a large lump sum. Even modest contributions made earlier in the year have more time to build than money added later on.

“Putting money in at the start of the tax year, rather than waiting until the deadline, gives your money an extra 12 months to grow. Over time, that difference can really add up.”

2) Take your cue from interactive investor’s ISA millionaires

“We can see how powerful early action can be in practice. 28% of ISA millionaire contributions for the year were made between 6 and 30 April 2025 on interactive investor - just after the new tax year began. 

“That suggests many experienced investors treat the new tax year as a starting gun, using the fresh allowance early, rather than leaving it until the last minute.

“For many people, it’s that realisation that allowances reset each year and can’t be carried forward, that becomes a real ‘penny drop’ moment and the trigger to act.

“It’s not about trying to outguess the market. It’s about building a simple habit: using your allowance when it becomes available and giving your investments as much time as possible to grow.”

3) Don’t let market noise knock you off course – keep a long-term mindset

“There will always be uncertainty, whether that’s economic news, market volatility or global events. It can feel more comfortable to wait until things ‘settle,’ but markets rarely move in a straight line.

“Unfortunately, market ups and downs are part and parcel of investing, but understandably they are not easy to stomach. When headlines are noisy and markets are shaky, it can be tempting to retreat to the sidelines. But history shows us that markets can and do bounce back over the long term. Many interactive investor customers demonstrate the value of holding their nerve and staying focused on the long-term, and we’ve seen impressive portfolio growth of 47.7%** from interactive investor customers on average over the last six years.

“A more effective approach is to stay focused on your goals and keep investing consistently, rather than reacting to short-term headlines.”

4) Use regular investing to create a healthy investing habit

“For those who feel cautious about investing a lump sum, regular investing can be a reassuring alternative. By drip-feeding money into the market, this can help smooth out volatility, so it can be effective way to manage risk and build confidence over time.

“It also helps build discipline. Setting up a monthly direct debit into a diversified stocks & shares ISA can make investing feel more manageable and remove the temptation to delay decisions.”

5) Make the most of your ISA allowance and stay savvy on fees

“The new tax year brings a fresh tax-free allowance for a stocks & shares ISA, a valuable way to protect your investments from income tax, dividend tax, and capital gains tax. You don’t need to use the full allowance straight away. You can build towards it gradually across the year, depending on what you can afford.

“When doing this, keep an eye on fees. Being fee-savvy can make a huge difference over time, and time is one of the greatest assets when it comes to investing.

“We can’t control the markets, but we can control how much we pay to invest. If you know what you are paying in fees and you’re confident that those fees are not eating into your pot which should be compounding over time, you’re going to be keeping more of your money.”

Taking the first step when the new tax year begins

Esmund concludes: “This isn’t about doing everything at once or getting it exactly right. It’s about taking small, manageable steps that fit your situation.

“Whether that’s starting to invest, continuing what you’re already doing, or simply taking the time to understand your options, progress tends to come from consistency, not perfection.”

Methodology

*The research was conducted by Censuswide, among a nationally representative sample of 2,001 UK consumers (Aged 18+). The data was collected between 20.01.2026 - 22.01.2026. Censuswide abides by and employs members of the Market Research Society and follows the MRS code of conduct and ESOMAR principles. Censuswide is also a member of the British Polling Council.

**Data from 1 January 2020 to 31 December 2025 in the latest ii Index.