Anxiety is rising among advised clients, driven by confusion over changing tax rules and allowances, says Wealthtime.
A survey among UK adults with average investable assets of £350,000 found more than half (53%) of those who have used financial advice in the last three years feel more worried about tax now than a year ago.
Almost half (47%) cited tax rules and allowances as a major source of uncertainty, while 30% admit they are confused about pension rules.
Wealthtime said last-minute tax decisions are common, with 52% of those surveyed completing most of their tax year end activity in March or April last year and 24% leaving it to the final week. The biggest barriers to acting sooner were lack of time (28%), fear of making the wrong choice (27%) and uncertainty about what to prioritise (21%).
Meanwhile, tax year end regret is widespread, with 74% of respondents reporting at least one regret, most commonly leaving decisions too late (27%), missing an allowance (23%) and keeping too much money in cash (18%).
The research also found that confidence in tax year end planning is low, averaging just 45.7/100 on the Tax Year End Confidence Index. Those working with a financial adviser score higher, at 48 compared with 41 for those no longer taking advice.
In addition, Wealthtime said only 20% of currently advised clients fall into the low confidence category compared to 45% of previously advised clients.
Kylie Clark, CX director at Wealthtime, said: “Tax year end is becoming increasingly stressful for investors. Changing rules and allowances mean even financially engaged clients can feel unsure about what action to take and when.
“What’s clear from our research is that ongoing advice makes a measurable difference. Those working with an adviser feel more confident, more informed and more in control, highlighting the value of an ongoing advice relationship at this critical time of year.”
Phillip Wickenden, founder of Ad Lucem, who led the research, said: “What stands out isn’t that clients are complacent, it’s that they’re cautious. And caution, left unmanaged, looks a lot like procrastination. The data consistently shows that reassurance and structure beat urgency-based messaging. Advisers who start earlier, simplify priorities and remove admin friction will convert that anxiety into action.”
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