Spring usually brings with it the urge to spring clean our home – when the sun shines it seems to highlight the dust and debris which accumulated during winter. We should also think about having a look at our finances as bills go up and our income doesn’t. Here are some tips and reminders which might help you get your finances in order.
1. ENERGY BILLS
The energy price cap is going up 6.4% if you’re on a variable tariff. That means the average household energy bill will rise from £1,738 to £1,849 a year. Have a shop around to see if you can get a cheaper tariff by switching and also consider changing to a fixed monthly rate so you always know what you will be paying monthly. You may accrue an energy debt during the winter but should clear it throughout the summer when you use less energy.
2. COUNCIL TAX
Check with your local council about their discounts and help with council tax bills. Usually you are billed for 10 months but ask if you can spread the cost over 12 months instead. Don’t forget if you are newly single that you will receive a 25% discount on your bill so make sure the council are aware of your new status.
3. TAX CODE
Your tax code will tell your pension provider or employer how much tax they need to deduct before paying you. Your tax code is made up of numbers and letters. The most popular code is 1257L – used for most people who have one job or pension. You’ll have the letter M or N at the end if you’re claiming the marriage allowance. You can see your tax code for the current tax year via your personal tax account on the government website. Or you may have received a ‘Tax Code Notice’ letter from HMRC in February or March. https://www.gov.uk/personal-tax-account
4. ISA ALLOWANCE
From 6 April, you’ll get a fresh £20,000 allowance. It’s worth paying into your ISA early in the tax year because your money has longer to grow. If you’re paying into a cash ISA, you can benefit from the competition between the different ISA providers, which often increases at this time of year. If you’re paying into a stocks and shares ISA, investing sooner gives more time for your money to (hopefully) grow in value.
5. MISCELLANEOUS
Cancel unused subscriptions. Check your media streamers like Netflix, Apple Plus TV, Amazon Prime and others. If you haven’t used them during the last month think about cancelling them or replacing with a cheaper alternative. What about gym membership? The same applies – there may be cheaper plans at other gyms so shop around.
Turn your clutter/junk into cash. If you are spring cleaning your home and de-cluttering you can sell unused items on eBay or Amazon Marketplace. You can sell unwanted clothes on Vinted https://www.vinted.co.uk/ and any gold, silver, cameras, jewellery, watches and more can be converted into cash at https://www.vintagecashcow.co.uk/
