Martin Lewis issues his ‘new year’ money tips for households this April
The 2026/27 tax year has officially started, bringing a great opportunity for households to get a financial health check.
To help understand what can be done to increase savings and income, money expert Martin Lewis has published ‘new year’s resolutions’ with a few easy tips for all households.
People at all income levels should make sure they do their tax work correctly and take advantage of the various offers and discounts currently available on the market.
Mr Lewis writes: “Forget January 1, the New Year that matters for your pocket is the New Tax Year, which started yesterday, April 6. This is the time when tax law changes come into force, ISA allowances are reset, benefits are increased and more.”
Here’s an overview of the money expert’s latest advice:
Maximize ISA power
With the start of the new financial year each individual’s Isa allowance resets, meaning a further £20,000 can be deposited cashless.
There is a slight difference this year, however, as this is the last year savers will be able to transfer this allowance into a cash Isa. This is because this type of Isa allowance will drop to £12,000 for under-65s from April 2027 under changes announced by Chancellor Rachel Reeves in last year’s Budget.
“But it’s business as usual this tax year,” writes Mr Lewis, “and if you pay tax on savings cash ISAs are the clear winner. Even if you don’t, easy-to-access cash ISAs currently pay higher rates than regular savings, so you’d better put your money there first.”
The money expert offers several recommendations for Cash Isas that offer the best rates as the new financial year begins.
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Trading 212 offers a 4.61 per cent savings rate on the Cash Isa for new customers. Meanwhile, Virgin Money offers 4.15 percent on transferred accounts, while Plum offers 4.08 percent.
There are also many fixed rate offers on the market; This means that the rate will remain the same for a certain period of time (usually a year). Mr Lewis recommends Tandem Bank at 4.51 per cent, HSBC at 4.5 and Nationwide at 4.35.
Make sure your tax is correct
Millions more workers will continue to pay higher taxes after 2026 due to the freeze on income tax thresholds that was extended in last year’s Budget.
Freezing tax thresholds creates what economists call ‘fiscal drift’; As average earnings rise, more people are drawn into higher tax brackets, but the thresholds remain the same.
This would mean 780,000 more basic rate taxpayers, 920,000 higher rate and 4,000 more additional rate taxpayers by 2029/30 than the OBR predicted in March 2025.
In light of the change, experts recommended that individuals use a free online tax calculator to ensure they understand exactly what will come out of their payslips each month this year.
It is also important for employees to ensure their 2026/27 tax codes are correct. This is a series of letters and numbers on a payslip that tells the employer or pension provider what tax should be deducted.
Mr Lewis writes: “Millions of codes are incorrect every year, so it’s crucial to check your own code – it’s your responsibility, not your employer’s or HMRC’s.”
Double check your pay stub
The increase to the minimum wage for all workers came into force from April 6, meaning it must be reflected in payslips this year.
According to the increases announced by the government, workers aged 18 to 20 will increase their wage by 85 pence to £10.85, which means an increase of 8.5 percent. Meanwhile, under-18s and apprentices will receive 45p more, a six per cent increase to £8 an hour.
At the same time, the national living wage for all workers over 21 will rise by 4.1 per cent, from £12.21 to £12.71 per hour.
It is a legal right for employees to be paid the right rate. The new levels will apply for the first full pay cycle after April 6; This means weekly payers can double-check to see if they see an increase soon.
Mr. Lewis writes: “$100,000 is underpaid each year, many at large firms. Common reasons include not being paid for all of your working time (for example, overtime and opening/closing) and having to pay for things like uniforms or tools that push you below the minimum limit.”
Can you increase your income?
The new tax year is the perfect time for low-income earners to check they’re getting all the support they can to strengthen their finances.
One of the most important changes that started this month was the end of the two-child benefit limit. This means parents with more than two children will be able to claim universal credit for all of them, unlike in previous years.
The move will increase benefits for 560,000 families by an average of £5,310, the Office for Budget Responsibility (OBR) calculates in its financial outlook.
Most means-tested benefits also increased by 3.8 per cent compared to 6 April, while the universal credit standard allowance increased by 6.2 per cent.
At a time when wage growth is slower than that (3.8 percent from November to January), many people who did not know they were eligible for certain benefits can now do so, especially if their wages have not increased in some time.
Around 24 million people in the country currently claim some combination of benefits administered by the Department for Work and Pensions (DWP); These include those receiving a state pension, representing approximately one in three people.
But research by Policy in Practice shows £24bn worth of benefits go unclaimed each year. calculator working to qualify.
For the latest cost of living and benefit advice, readers can visit the Independent’s regularly updated guide
