Millions of families across the country currently face an increase of up to 4.99% in their bills, as what has been described as a ‘tax bombshell’ is set to hit the UK.
The best thing consumers can do to prepare is work on cutting down regular bills, helping to save ahead of the potential increase, according to money.co.uk.
Salman Haqqi, personal finance expert at money.co.uk said: “If you are concerned about the impact that the tax increase could have on your income, there are some steps you can take to help cut down on regular bills and reduce the possibility of building up debt.
“The first thing to do if you’re trying to save is check what financial assistance you’re eligible for. Many credit card providers have started giving payment holidays to help customers through COVID induced debts, and some are even waiving certain fees if you can prove COVID related financial problems.
“There are often hidden costs building up that you may not be aware of. Given the amount of disruption to our daily lives over the last year, you might be paying for gym subscriptions, fast delivery services or streaming sites that you haven’t used in months. They can often add up, and many services require at least a month’s notice before you can cancel them, so don’t wait to check.
“See what you could switch, in order to save. Many service providers like energy, mobile and broadband offer cashback or a switching fee – doing a quick check for the latest deals could provide you with a small cash boost, as well as a monthly saving moving forward.
“Finally, now many of us have adjusted to working from home, it’s become increasingly clear that even if lockdown restrictions lift, many of us won’t be travelling as much as we used to. If your car has been sitting on the driveway for months and is likely to stay there – there’s no need to pay as much to maintain it. If you apply for SORN (Statutory Off Road Notification) for your car – you will no longer have to pay either road tax or insurance, potentially saving you hundreds of pounds over the next few months.”