UK Tax Allowances are figures that are set by the UK government each year which dictate how much income tax is payable for each tranche of a person’s earnings. There are often 2 or 3 different rates of tax payable on various levels of earnings and these have changed over the years and will no doubt continue to do so!
When talking about UK tax allowances, people are also often referring to any allowances that are given by the government or HM Revenue to reduce the amount of tax that a person needs to pay. There are various UK tax allowances including the personal allowance, age related allowance, married couple’s allowance and a blind person’s allowance. Some of these have been reduced or removed in recent years so that most people end up with the same personal allowance.
Tax Free Allowances
There are tax free allowances available up to a certain level which allow taxpayers to earn money up to a certain threshold without paying any tax on those earnings. Above the tax free threshold are other tax allowances for further earnings at different rates of interest dependent on the level of income earned and the status of the individual. you can see the current level of the personal allowance on the tax rates at a glance page.
UK Tax Allowance Increases
Each year the UK tax allowances are increased by the Government (although on occasion and changes in policy some allowances remain the same) in line with the declarations made in the Budget for that tax year. Often UK tax allowances are declared years in advance but sometimes these figures are amended in subsequent budgets, particularly if there is a change in Government.
Making Tax Allowances Simple
This site was set up not only to keep you up to date with any changes in UK tax allowances, but also to cut through the jargon and explain what some of those changes might mean to the working man or woman. Sometimes the language used and calculations necessary can be complicated so we will attempt to cut through that and make it all as simple as possible to enable you to make sense of it all and pay as little tax as you need to!
We also cover details on UK tax allowances that are not related to personal earnings. For example Inheritance Tax Allowance and Capital Gains Tax allowance – just do a search on the right hand side search bar for the particular information that you are looking for.
If you find any of this information useful then please feel free to subscribe to updates and you will be emailed each time any new information is added to the site. You can be assured that your email will remain confidential and will not be used for any other purpose or passed on to any other companies and you are free to unsubscribe at any time.
For further information on individual UK tax allowances and up to date figures check out the most recent articles on the site. If you want an overview of the current UK tax allowances then check out this page.