“Hundreds of thousands of people saw pay rises take them into paying tax for the first time, or a higher rate of tax, and the government reaped the rewards.
“Income tax rates will rise for the final time in this parliament in April, and will then freeze. It means the number of people paying higher rates of tax will rocket.
“You don’t have to take the extra tax on the chin, because you can take steps to ensure you’re not paying over the odds.
“If you have income from savings and investments, your ISA allowance will shelter gains and income for life. Pension contributions, meanwhile, attract tax relief at your highest marginal rate, and the first 25 percent taken from the pension is usually tax-free. And if you’re married, sharing assets between spouses can reduce the tax bill significantly.”