New tax year approaching

Even without the 50 per cent tax rate, UK taxes can still make a serious dent in incomes so it is worth looking at things carefully when you organise your finances.

With this tax year ending on April 5th and the new year starting on the following day, now could be an ideal time to look into your tax affairs and ensure you're not paying anymore than is required.

The changes introduced in by chancellor George Osborne in his latest Budget will have an impact on tax payers in the UK so it is unwise to assume that the way you did things last year will suffice for the next year.

Lowering the top tax rate from 50 per cent to 45 per cent was one of the headlining changes made by the chancellor, but there were some other adaptations made to the tax system that might not have such a positive impact.

For example, 300,000 more people will be drawn into the higher 40 per cent rate of tax from 2013/14 as the threshold is lowered from £42,475 to £41,450. Older taxpayers will also be hit, with those aged 65 and over seeing their age-related tax-free allowances removed from April 2013 and lowered onto the standard allowance of £9,205.