Before the tax year ends, you still have the opportunity to save a lot of money
As we approach the new tax year, many people are being urged to take advantage of certain perks that will only be available over the next few weeks.
Speaking on his Martin Lewis podcast, the consumer champion highlighted that people only have a set allowance each tax year for their ISA, which automatically resets once the tax year ends.Mr Lewis said: "I tend to think the 31st of December, New Year's Eve as we call it, is just a meaningless sentimental date.
"And if you don't use it, if you don't use the year's allowance, you lose it on the fifth of April. But if you put money into a cash ISA, now the maximum amount you can put into a cash ISA or stocks and shares ISA or any ISA in total in a year is £20,000. If you put money into an ISA in a tax year, it's not just tax free that year, it's tax free year after year after year until you take it out.
He added: "So picture it, if you were lucky enough to put £20,000 in now into a cash ISA, you could then put another £20,000 in on the sixth of April - the start of the new tax year - and then another £20,000 in a year on the sixth of April, then that's £60,000 protected from tax.
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