The top rate of income tax this year is 45% – or is it?

Anyone whose income exceeds ?100,000 is already paying tax at 40%.

This high rate begins when taxable income exceeds ?32,010 ? but your personal allowances are also clawed back for every ?2 by which your adjusted net income exceeds ?100,000.

All in all, the 40% top rate of income tax plus the loss of allowances equates to an effective 60% rate on up to ?18,880 of your income!

Will your income fall within the ?100,000 – ?118,800 band?

If your income for 2013/14 is likely to fall within the ?100,000-?118,880 band, talk to us about your options ? you might, for example, delay income into the next tax year or increase your payments into a pension.

If you want to avoid the 60% ?hidden top rate of income tax? you will usually need to act before the end of the tax year on 5 April.

There is only one ?net adjusted income? reducer which can be arranged after the end of the year ? a Gift Aid carry-back. Subject to making a qualifying donation to charity and the associated claim no later than when you file your 2014 tax return, a donation which would otherwise fall into 2014/15 can be claimed for 2013/14.

Certain rules apply, so please talk to us first.