Martin Lewis warns people only have a few days left to get free £1,000 from the government

Finance guru Martin Lewis is urging those with ISAs to “use or lose” their allowances before the end of the current tax year. You’ve got exactly 10 days left before we roll into a new tax year on April 5 and if you want the free £ 1000 from the government, you’re going to have to act quickly.

A cash ISA – an individual savings account – is where you don’t pay tax, up to the limit of £ 20,000 for the 2021/22 tax year. For those with lifetime ISAs (LISAs) you can put away £ 4,000 each year and the government will give a bonus of 25% on top of that. Essentially, this means you can get a free £ 1000 from the government each year. If you and your partner have both got an account then you’ll get £ 2,000.

But be aware of those 10 days creeping up on you. This current tax year ends on April 5 and you will need to transfer any money you can over to that account to get any sort of bonus from the government. Followers of Martin Lewis will know that he’s trying to make people aware, telling them in his latest MoneySavingExpert email: “If you’re a first-time buyer, check out the Lifetime ISA’s 25% boost worth up to £ 1,000 / year on your first home. ”

Read more: Martin Lewis ‘really sorry’ as he issues apology over wrong gas and electric bills advice

However, there is an overall yearly limit of £ 20,000 on a cash ISA account and any amount you put towards your LISA will count towards this allowance. Martin Lewis has made a bleak comment on the cash ISA rates, saying that 85% of people are now better off leaving them behind. At the moment, cash ISAs generally have worse rates than normal savings account.

Martin said: “Now the personal savings allowance means most DON’T pay tax on savings interest. The PSA launched in 2016, allowing basic (20%) taxpayers to earn £ 1,000 / year of any savings interest tax-free and higher (40 %) taxpayers £ 500. At today’s top easy-access 1% rate, you’d need a hundred grand saved to generate £ 1,000 interest. So these days, most people – over 19 in 20 in fact – don’t pay tax on savings anymore. “

The UK is in an energy crisis following the price of gas which has rocketed in recent weeks.

Many energy suppliers are out of business which has prompted warnings of food shortages in UK supermarkets.

Householders are being warned that anyone coming off cheap, fixed energy deals could be in for a huge price hike, even on the cheapest tariffs. To avoid a potential price hike in energy bills customers can:

  • Stick with the price cap for six months as prices could potentially fall if the energy market stabilises.
  • Switch to the cheapest one or two-year fixed deal but you’ll need to act fast – see here for switching.

Here are some of Ofgem’s suggested comparison sites:

You can also try Look After My Bills and Confused.com.

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