» Read the full story

More than half of people surveyed by financial advisers think that there are tax hikes on the way for investors and higher earners in the wake of the April Budget by Chancellor, Alistair Darling.

Tax rises for high earners were announced in the Autumn Pre Budget Statement, however the April Budget increased the top rate further. This means for many self employed people, especially those with their own businesses, the outgoings will just get higher.

A recent survey by Hargreaves Lansdown found that 56% of people believe they will pay higher taxes in the future and 56% also think basic rate tax will go up in the next year.

Ben Lundie, head of Vantage Development, a part of the adviser, says: "Regardless of which political party is in power, taxes are expected to increase. This makes it more important to ensure your financial affairs are as tax efficient as possible."

This means doing a root and branch reappraisal of all your investments and financial responsibilities. Go through everything – mortgages, investments, debts, savings and insurance premiums – and see where you could save more money. Talk to a financial adviser about changing some of your deals, about seeking out new sources of revenue and about saving as much as you can.

The next few years will be tough for everyone, especially for those with irregular incomes like the self employed. That's why by doing a financial MOT now, you will be be better placed to deal with any tax hikes, rate jumps or surprise costs as and when they come along.

SOURCE: Hargreaves Lansdown, 28/05/09

Keep up with the latest news and comments on Self Employed Mortgages at the Self Cert Mortgage Blog