Additional rate tax payers
Individuals with income above £150,000 are subject to additional rate tax at 50%. Although it may seem a fortunate position to be in, giving half your earnings to the tax man is not pleasant. However, after 5 April 2013 this tax rate is being reduced to 45%.
Therefore there are opportunities to save tax by deferring income until after 5 April 2013 and bringing forward expenditure planned for after 5 April 2013 to before this date.
If you have any money on deposit in a bank which pays interest monthly or perhaps six monthly you could close this account and invest the money in an account that pays interest annually. This means the interest that would have been received before 5 April 2013 is deferred until after. This will result in tax being paid at a rate of 45% on the deferred interest instead of 50%.
Directors / shareholders
If you are a director / shareholder you may be in control of the amount and timing of your remuneration. Therefore delaying bonus payments until after 5 April 2013 will mean it will be taxed at 45% instead of 50%.
By bringing forward expenditure such as pension contributions, gift aid payments or other expenses planned for 2013/14 to 2012/13 you can get 50% tax relief instead of 45%.
If you are an additional rate tax payer just consider what you may be able to do to prevent as much income as possible being taxed at 50% by making and planning for changes now.