While most accountants take their annual golfing holiday in February, I’m making sure my clients are aware that now is the most important time to review their potential tax situation for the year ending 5th April 2013.

With less than two months to go before the end of the current tax year now is the time to consider and review your tax planning options.

If you have made a capital gain within the tax year or your income has increased then you may be facing an additional tax liability. Furthermore those who are regularly faced with a recurring tax bill should spend time with their tax adviser making sure they have done all they can to minimise their liability.

Here are five tax planning tips you should consider:

1. Where married couples or civil partners have significantly different levels of income, consider whether ownership of income-producing assets can be transferred such that both partners’ allowances and basic rate bands are being utilised and combined income is being taxed at lowest possible rate. I (with the help of a solicitor) have recently been helping my clients who jointly own a rental property transfer the share ownership to 90% to the wife and 10% to the husband to take advantage of this.

2. Consider disposal of investments or other assets prior to 5th April to utilise your capital gains tax (CGT) exemption for the year currently at £10,600, or crystallise losses to offset against gains in the year. If your annual exemption for this year is already utilised, consider deferring disposals until after 5th April. I have been working with my clients’ wealth managers to advise them on selling their various share portfolios.

3. Contribute more to your pension. For those with higher earnings, pension contributions up to £50,000 per tax year also save higher rate tax and additional rate tax where those apply. I have been helping a client who is an employee at a bank but knows his income for the year slightly exceeds £100,000 meaning he will lose some of his personal allowance. By contributing more to a pension he will now save his personal allowance effectively saving 60% tax in the process. If you know you have had a salary increase and will be earning between £100,000 – £115,000 consult your tax adviser asap.

4. Tax efficient investments – I have been promoting the government’s new Seed Enterprise Investment Scheme. You can still qualify for up to 78% tax relief on investing into a qualifying SEIS company. Your initial investment will attract an amazing 50% tax deduction. So if you invest £20,000 into a qualifying company you will obtain a £10,000 deduction. Furthermore if you have a capital gain, you can invest the gain into this company and avoid paying the 28% capital gains tax. I work with a number of SEIS qualifying companies and have already helped a number of clients successfully invest.

5. Child Benefit Tax – From January 2013, if you are claiming child benefit and you or your partner earns more than £50,000, you will be liable to pay a new tax and register for self assessment. Unless you have officially disclaimed the child benefit you will have to pay the tax. However you can consider taking an extra week’s unpaid holiday, making pension contributions, buying childcare vouchers and contributing more to charity to reduce your net income if you are on the border of earnings between £50-60k.

The above are just a few tax planning ideas I have personally selected but there are many many more.

It is so important you review your circumstances because you could end up saving thousands of pounds of tax. February and March are the months to do this – so ACT NOW !

Mitch Young is a tax adviser at Lerman Jacobs Davis. Follow him on Twitter @MitchTheTaxMan