There aren’t many people who will be breaking open the bubbly to celebrate a happy new tax year. They’re more likely to be drowning their sorrows after discovering that there’s a good chance they’ll end up paying more tax in the coming 12 months.
Some of these extra taxes can’t be prevented — like the end of the stamp duty holiday, the hiking of council tax, and new rules making car tax more expensive.
However, there are some tax blows you can protect yourself against.
The biggest issue for many people is the freeze of the income tax thresholds. These typically rise each April, but right now they’re completely frozen until 2028. It means every pay rise hikes your tax bill and pushes you closer to crossing a threshold. Already around a fifth of taxpayers pay higher or additional rate tax, and this is only going to get worse.
One of the most effective ways to cut this bill is by paying more into your pension, because you’ll get relief at your highest marginal rate.
Read more: How to make ‘manifesting’ work for your money
You won’t have more money…
