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Martin Lewis is trying to help households save their cash once again in preparation for the current tax year coming to an end in April.
It comes as council tax and water bills are set to rise, meaning families will have to tighten their belts even further as the cost of living crisis shows no sign of abating.
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The current tax year is set to end on April 5, meaning it is important you use up your ISA allowance before that date.
Sharing his 17 tips in Martin’s MoneySavingExpert.com newsletter, it detailed the following:
Energy bills rising
Energy bills are rising again from April 1, with the Ofgem energy price cap set to increase by 6.4%.
This means the average dual fuel household paying by direct debit will see their annual energy bill increase from £1,738 a year to £1,849 – a rise of £111 a year, or £9.25 a month.
Martin has urged homeowners to look for the best deals out there, saying: “As the current cheapest fixes are 7% below today’s price cap, they’re 13% cheaper than the average cost of April’s price cap, so use our cheapest fixes comparison to see what’s out there for you.”
Stamp duty changes
The stamp duty thresholds in England and Northern Ireland are going back to their lower levels from the start of April.
This means first-time buyers and homemovers face paying thousands of pounds more if they complete on a property sale after this date.
Water bills rising
Water bills are also set to rise in April, with the average person set to see their annual cost increase by £123, a rise of around 25%.
However, millions of households face even steeper rises, as Southern Water, for example, will issue a 47% increase.
Martin has told homeowners to invest in a water meter: “More bedrooms in your home than people (eg, three bedrooms, two people), or the same number? If so, a water meter is likely to save you cash.”
Use your ISA allowance
Savers have until April 5 to use up their £20,000 ISA allowance before it resets for the new tax year.
This allowance doesn’t need to be limited to just one ISA either, as it can be split between Cash ISAs, Stocks and Shares ISAs, Innovative finance ISAs and Lifetime ISAs.
“If you’re lucky enough to have enough, you can fill up this year’s now, add another £20,000 on April 6, and a year later the same again etc,” Martin explained.
Save for your children
There are ISAs for your children as well, designed for those under the age of 18.
These Junior ISAs do not effect your £20,000 ISA limit either and allow you to save up to £9,000 into them annually.
Martin Lewis said: “If you pay tax on savings, and give your kids money, JISAs come into their own.”
Consider investing
For the uninitiated, investing can seem like more of a gamble than a wise financial decision, but for those that know what they are doing, it can prove to be a savvy investment.
If you are considering this, you can invest up to £20,000 in a Stocks and Shares ISA and you don’t pay dividend tax or Capital Gains Tax.
Martin Lewis said: “Investing is generally for money put away over the longer term (say, five years plus), in the hopes it’ll substantially outperform savings – and while there’s no guarantee that’ll happen, it really is something many should consider.”
Free £1,000 for your first home or retirement
A Lifetime ISA is ideal for those that are saving for their first home or retirement, with it letting you put away £4,000 annually and you get a 25% bonus on your savings, equating to £1,000.
However, you must use your Lifetime ISA for your first home or retirement; otherwise, you will face a 25% penalty.
“If you’ve not filled this year’s up yet, and have the cash, do it before 5 April,” Martin said.
Claim marriage tax allowance
For married couples, you could be entitled to a tax break worth up to £1,258.
Marriage tax allowance allows eligible couples to transfer £1,260 of their personal allowance to their spouse or civil partner to cut their yearly tax bill.
Martin said: “If you’ve been eligible since 2020/21, you can backdate it for a total gain of up to £1,260, but go quick, as you must apply for backdating before 5 April or you’ll miss the 2020/21 tax year.”
Tax back for work uniform
For those of us who don a uniform for work, you could be owed tax back if you have to wash or replace it.
The standard allowance for uniform maintenance is £60, you’ll get 20% back, which works out at £12.
For higher-rate taxpayers, you get 40% back, so £24.
Check tax code
Millions of people are on the wrong tax code meaning they could be entitled to money back from HMRC.
Check your payslip and then contact HMRC if you think your tax code is wrong.
“It’s YOUR RESPONSIBILITY, not HM Revenue & Customs’, nor your employer’s, to check whether it’s wrong, and if it is, it can mean you’re overpaying and are due cash back,” Martin said.
PPI payouts
You may be owed tax if you’ve received a PPI payout due to most people having tax taken off the “statutory interest” that was included.
To reclaim any tax you’re due on PPI payouts, you’ll need to fill out the R40 form on GOV.UK.
Martin explained: “There were still many payouts in the 2020/21 tax year, the year you’re about to lose the ability to claim tax back for.”
Deadline for state pension top-ups
Ensure that you have no gaps in your National Insurance payments, as state pensions are dependent on your record.
You can buy missing National Insurance years dating back to 2006.
However, after April 5, you will only be able to go back six tax years. It generally costs around £824 to buy a missing class 1 National Insurance year.
Council tax bills rising
Most households will see their council tax bills rise by 5% from April 1.
In the current tax year, 2024-25, council tax on a typical band D property in England is an average of £2,171.
Martin has urges ssavers to check for discounts or if they have been placed in the wrong band, saying: “Are you one of up to 400,000 in the wrong band?
“If yours is too high, you could be due a backdated payout of £1,000s plus a lower bill.”
Reduce broadband and mobile bill
Martin’s advice for reducing your mobile and broadband bills is simple – haggle with your providers.
It is also always worthwhile to compare prices with competitors, as the financial guru explained: “The solution is to grab a new contract.
“Not only will the price often be less than half of what you pay now, you’ll usually know if and when it’ll rise, and by exactly how much.”
Check for free school meals
The cost of providing a lunch for your child at school soon adds up, but thankfully there are support programs out there for families.
If your household income is under £7,400, you could be entitled to free school meals.
“If you do it after April, the rules change and it’s likely to mean more regular eligibility checks (the Govt. won’t confirm exactly what this means),” Martin explained.
50% interest on your savings
Look into setting up a Help to Save account before the rules for them change in April.
They are savings accounts that are issued by the government for some people claiming Universal Credit or Tax Credits.
It allows you to put away between £1 and £50 each month – and for every £1 you save, you get 50p back, which is a 50% return on your money.
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