Seven Tax Traps:

1. Income Tax on Earnings: The income tax rate rises from 20% to 40% upon crossing the threshold into the higher rate tax band.
2. Personal Allowance Withdrawal: Personal allowance is reduced by £1 for every £2 of adjusted net income above £100,000, resulting in an effective tax rate of 60% until the allowance is zero at £125,140.
3. Dividend Tax: Higher rate taxpayers face increased tax rates on dividends, with allowances reducing from £1,000 to £500 in the next tax year.
4. Capital Gains Tax (CGT): Higher rates of CGT apply after crossing the threshold, impacting gains on investments. The tax-free allowance decreases from £6,000 to £3,000 in the next tax year.
5. Tax on Savings: Savings may be subject to higher income tax rates, and personal savings allowance decreases for higher rate taxpayers (£1,000 to £500).
6. High-Income Child Benefit Tax Charge: Imposed at £50,000, leading to a repayment requirement for child benefit; full repayment occurs at £60,000.
7. Loss of Tax-Free Childcare: Available until earning £100,000, after which parents no longer qualify.

Ten End-of-Tax Year Strategies:

1. Pension Contributions: Higher rate taxpayers benefit from pension contributions, extending the basic rate tax band. Salary sacrifice schemes enhance benefits.
2. High-Income Child Benefit Tax Charge Reduction: Pension contributions can reduce adjusted net income, aiding in cutting the high-income child benefit tax charge.
3. Utilize Pensions to Address £100,000 Threshold: Pension contributions can reduce income, lowering tax at a 60% rate for income over £100,000.
4. Optimize Capital Gains Tax Allowance: Use CGT allowances efficiently, considering the Bed and ISA process for moving assets into an ISA.
5. Shelter Income-Paying Assets in ISAs: Utilize ISAs to shelter income-producing assets, benefiting from cumulative tax advantages.
6. Consider Cash ISAs: Evaluate the benefits of cash ISAs, particularly if paying tax at a higher rate on savings interest.
7. Plan as a Couple: For couples, transferring income-producing assets to the lower-taxed partner can optimize tax allowances.
8. Consider Future Tax Position: Assess future tax positions, especially if transitioning to a lower tax band, to decide on delaying income or capital gains.
9. Charitable Donations: Make tax-efficient charitable donations to reduce tax bills, with the added benefit of gift aid for charities.
10. Venture Capital Trusts (VCTs): Consider VCTs cautiously, as they offer income tax relief (up to 30%) but involve higher risk.

These strategies aim to help individuals navigate tax traps and optimize their financial positions before the end of the tax year.