Residents across the UK are being urged to make the most of a unique savings account that could protect them from ‘hidden taxes’.

Sky News reported earlier this year that we are, unfortunately, far from seeing the light at the end of the dismal cost of living crisis tunnel.

Instead, we’re expected to feel even more of a pinch as bills are set to mount.

And to make matters worse, a recent report published by the BBC saw the Bank of England suggesting we’re going to experience a rise in inflation throughout the year.

In an attempt to beat the crunch, thousands of UK households have been pouring their hard-earned wonga into saving schemes.

One of the most popular is a tax-free Individual Savings Account (ISA).

What is an ISA?

If you’ve never used an ISA, then basically, these investment pots can be used to save for your first home, invest in your future, or build a sweet retirement fund.

The annual limit for cash ISA contributions is £20,000 during the tax year (April 6 to April 5), and the good news is that this amount can be saved in a single account or distributed across multiple.

It’s thought that even though around eight million savvy savers are currently utilising these accounts each year Chancellor of the Exchequer and Labour Party MP Rachel Reeves is believed to be considering whether to scrap the tax-free cash version of the ISA savings account.

Households across the UK are therefore being warned that now is a better time than any to make use of an ISA and that it can offer some protection against ‘hidden taxes’, as per the Daily Express.

According to experts at Hargreaves Lansdown, 56 percent of new clients have actually opened a cash ISA in the last week and that deposits up 325 percent in 2025 so far versus the same period in 2024.

Sarah Coles, head of personal finance at Hargreaves Lansdown, said there were five hidden taxes that an ISA could be used to offset or prevent.

A financial expert has explained how opening an ISA could benefit you (Getty Stock Image)

Avoid paying tax on a Sharesave scheme from work

ISAs can be used to save on capital gains tax (CGT) paid on shares bought from a Sharesave scheme (SAYE) or Share Incentive Plan (SIP), says Coles.

Essentially, as long as you transfer the shares into an ISA within 90s of ‘exercising the option on your shares’ then there won’t be any CGT to pay.

It should be noted though that you can only transfer up to £20,000 of shares into the account.

An ISA could protect from an unexpected CGT bill on a child’s bare trust

A bare trust is defined by Gov.uk as an account ‘used to pass assets to young people’ and are usually looked after by someone else until the beneficiary is old enough.

However, when the child on the account turns 18, they could be hit with a hefty CGT bill is they make ‘significant gains’, says the Hargreaves Lansdown expert.

Though this may be mitigated by utilising an ISA, says Tom Riley, the director of retail products at Nationwide Building Society.

“Cash ISAs not only help ordinary people save efficiently but enable us to fund our first-time buyer lending,” he explained.

“Any limitations on lending would further impact those looking to get a foot on the housing ladder at a time when saving for a deposit remains a significant challenge.”

AIM ISAs are currently potentially free of inheritance tax after two years

You may be intrigued to hear that Inheritance Tax (IHT) is not currently potentially payable on Alternative Investment Market (AIM) ISAs after two years.

Therefore, parents could use as ISA to avoid a whopping 60 percent tax bill from HMRC and also save money on childcare as a bonus, as per Birmingham Live.

“The rules mean that for every £2 in taxable income over £100,000, your personal allowance reduces by £1, and is completely extinguished by the time that income reaches £125,140,” added Coles.

If you earn over £100,000 then an ISA could help protect your cash (Getty Stock Image)

Those making over £100,000 could use an ISA to protect themselves

If you’re someone who annually makes over £100,000 and want to protect yourself from 60 percent tax and losing free childcare, then pouring your earnings into an ISA is a no brainer.

The financial advisor reports that there is no CGT levied on investments placed in a savings ISA and that no income tax is paid on interest.

This also includes taxable income from things like savings and dividends.

High-earning parent can save on the high income child benefit charge

A high-earning parent who opts to shelter their savings within an ISA could mitigate the impact of the high-income child benefit charge (HICBC).

This charge is equal to one percent of a family’s Child Benefit for every £100 of adjusted net income over £50,000 each tax year, with the threshold being over £60,000 for the tax year 2024 to 2025.

By moving some of your savings to an ISA, the income becomes tax-free, so doesn’t count towards the £100,000 limit, reports Coles.

“This saving is on top of the fact you’re not paying tax on this income,” she continued.

“If you made £101,000 in taxable income, and £1,000 of it was in taxable dividend income, you’d pay £337.50 in tax on those dividends (dividends are taxed at 33.75 percent for higher rate taxpayers).

“You would also lose £500 of your personal allowance, so at 40 percent that’s an extra £200 of tax. By moving those dividend-producing assets into an Isa, you could save £537.50 in tax in a single year.”

Couples who are married or in a civil partnership have been issued an urgent warning.

With just days until the deadline, couples are being encouraged to check if they’re eligible for the marriage tax allowance.

And you’ve only got until 5 April to claim the full amount, after which a new tax year will begin.

What is the marriage tax allowance?

Marriage tax allowance only applies to you if you are married or in a civil partnership.

One has to be a non-income-taxpayer – earning less than £12,570 a year – while the other has to paying the basic 20 percent rate – which is up to £50,270.

You also have to have been born on or after 6 April, 1935 (if you’re under 88, which most of us are, you’re fine).

How much money can you claim?

Martin Lewis – who regularly reminds people to check if they’re eligible – has previously explained: “The non-taxpayer can apply to shift 10 percent of their £12,570 tax-free allowance to their spouse, so they can now earn £1,260 more (it’s rounded up) without paying 20 percent tax on it.

“That’s a gain of £252 per tax year.”

Photographed by Victoria Phipps/Getty Stock Images

How do I claim the marriage tax allowance?

The beauty of the marriage tax allowance is that it can be backdated for five years.

“If you’ve been eligible since 2019/20 you can backdate it for a gain of £1,260, but go quick, or you’ll lose the earliest year,” Lewis says.

Going forward you also don’t need to reapply, meaning it’ll just keep landing in your bank account if you are still eligible.

To get the full whack for the last five years, you need to do it by 5 April as Lewis advises that is when the tax year ends and a new one begins.

The non-taxpayer needs to apply for marriage tax allowance, and you can do so on the HMRC website here.

ITV

What else do you need to know?

Martin warns couples to ensure that you will benefit from marriage tax allowance before you apply.

Over on the Money Saving Expert website, they explain: “Where the non-taxpayer earns between £11,310 and £12,570, there is a chance you and your partner won’t benefit from marriage tax allowance because of the way the tax is calculated.

“In some cases, you could actually end up out of pocket (even if you’re technically eligible).

“So if you’re a non-taxpayer earning more than £11,310 check whether you’ll actually benefit before applying for marriage tax allowance.”

You can do that here.

If you don’t claim by 5 April, you’ll lose one year of money (if you’re eligible for the past five years).

So go, go, go!

An investigation into ‘nicotine free’ vapes has made a worrying find with Brits warned that they might not be buying what they think they’re buying.

Trading Standards has looked into the supposedly nicotine free vapes as part of something called Operation Joseph, an initiative funded by the Department of Health and Social Care to look into the sale of illicit vapes and selling vapes to underage customers.

Various teams tested 76 different vape products which were being advertised to Brits as ‘nicotine free’ and found that around one in eight of these actually did contain around the same amount of nicotine as you’d find in a pack of 20 cigarettes.

A total of 10 of the tested products which claimed to be ‘nicotine free’ were found to not only contain nicotine but break the amount of e-liquid allowed in vapes.

Two of these products being advertised as coming without nicotine also broke the limits on nicotine strength, so there’s a danger that Brits buying vapes which claim not to contain the addictive and harmful substance are actually brimming with the stuff.

This stuff is not good for you at all, guys ( Johner Images/Getty Images)

National Trading Standards chairman Lord Michael Bichard said: “Nicotine-free vapes can be a useful tool to quit smoking and reduce nicotine dependency, but these findings reveal that people can actually continue to be stuck in a cycle of addiction if sold the highly-addictive substance unknowingly.

“Businesses should be aware vapes falsely claiming to be nicotine free are in circulation and should make sure they are not breaking the law by selling products that are falsely advertised, especially where they are importing goods or acting as the main UK distributor.

“I urge businesses and consumers to be vigilant and report suspected cases to the Citizens Advice consumer service by calling 0808 223 1133.”

Alex Fry, operations officer for Heart of the South West Trading Standards, said: “We are pleased to have contributed to and helped co-ordinate the sampling of this project.

An investigation into ‘nicotine free’ vapes has found that more than one in eight actually does contain a lot of nicotine (RealPeopleGroup/Getty Images)

“We recognise how important it is for regulators and legislators to have up-to-date intelligence on what products are being supplied to consumers.

“Trading Standards are at the forefront of ensuring products comply with legal requirements and we hope that the findings will provide valuable intelligence, and help shape the future regulation of cigarettes, tobacco and vapes.”

Vaping starts damaging your body the instant you do it, and while it has been praised as a less harmful alternative to smoking there is a danger that people will pick up the unhealthy habit even if they weren’t ever going to get involved with cigarettes.

Even in the case of vapes which actually don’t contain nicotine, a study from the University of Pennsylvania has found that even if you’re not sucking down the harmful substance on a regular basis vaping will still hamper your vascular function.

Martin Lewis has issued a warning to anyone flying out of the UK this year as the holiday season ramps up.

Spring is here and with it, warmer temperatures across most destinations Brits love heading to during their spells of annual leave.

But whether you love a trip to Benidorm or to take in the ancient culture of Rome, everyone going on holiday has one common thing they need to make sure is ticked off.

For Lewis, it’s not just simply about ticking it off. But doing so well in advance. We’re talking about travel insurance.

Taking to his The Martin Lewis Money Show Live on ITV1 and ITVX this week, the financial journalist spent a short segment of the show warning viewers about the horror stories that unfold for people who don’t have travel insurance when they should do.

“Travel Insurance is not just to cover you while you’re away,” Lewis says.

“It’s also very important to cover you in case something happens before you go that stops you going. I have a rule. You should get your travel insurance ASAB. As soon as you book.”

He continued: “Right now, many people have already booked. If you don’t have your travel insurance, and if your holiday is booked, do it right now.

“The reason I do this is every year someone asks me a question. Something like, ‘I’ve been diagnosed with cancer, we can’t go on the holiday. They’re saying we can’t have our money back. What do I do?’.

“And I’m impotent, because the answer is, you get on your travel insurance. And they say, ‘well, I haven’t got my travel insurance yet’. Do not get your travel insurance the day before you go. You get your travel insurance ASAB.”

Get that travel insurance booked (Getty Stock Images)

The show then recalled a case study from 2024 where a member of the public contacted Lewis explaining they had a holiday booked for Christmas but had been medically advised not to travel. The problem? They hadn’t booked their travel insurance.

“Please don’t be the person this summer who asked me that question,” Lewis stressed.

“Just think about it for a second. If you bought a tennis racket and you broke your arm, you can’t say to them, I want a refund because my arm’s broken. The tennis racket still works. The flights still work, the hotel still works.

“It’s not them that’s got the problem. It’s you. That’s the logic. That’s what you have insurance for.”

Holidays don’t always go to plan (Getty Stock Images)

One viewer messaged Lewis on X (formerly Twitter) to say it was ‘great advice but no need to call it a warning’.

Lewis was defiant in his wording, responding: “Forgive me but it is 100 percent a warning.

“If you got the emails I got from desperate people who’ve had a serious health diagnosis in the summer and can’t afford to lose the holiday money. You’d warn people too.”

If you’re forgetful like me, best take a look at that annual premium that’ll cover you no matter when you go away.