We at DSR Tax Refunds know how hard it is to find good, quality information about tax areas and we are here to help. We are experts in all matters relating to tax and we want to share our expertise with you. In some of our guides, you will see us talk about tax allowances or personal allowances – but what are they? Here is a handy guide to help you understand them better. But if you get to the end and you’re still not sure how it all relates to you, give one of our friendly expert team a call on 0330 122 9972 and we will put you on the right path.
Most UK taxpayers are entitled to a personal allowance – this is the amount of money they are allowed to earn in each tax year before they are required to pay tax on their earnings. That means that until you are earning above that income level, you don’t have to pay any tax at all.
So for the current tax year (2019/20), if your total earnings from all sources (that means from your job, as well as interest in savings or other forms of income) are less than £12,500 per year then you do not have to pay a penny in tax. And if you do earn more than this amount, you only start to pay tax on the income above the £12,500. That is why it is called a ‘personal allowance’ and this amount will be reflected in the tax code shown on your payslip. If you want more information about tax codes, see our tax code guide.
Is the personal allowance the same for everyone?
Most people will have the same personal allowance, set by the HMRC for each tax year. But there are things that can impact your personal allowance. For example, you may be entitled to the Blind Person’s allowance or the Dividend Allowance. These additional allowances increase the amount you are allowed to earn before you need to pay tax. Call DSR Tax Refunds on 0330 122 9972 for more information on the personal tax allowances you might be entitled to.
What could these allowances mean to me?
What they could mean is that you are allowed to take home more of your money each week or month! Your tax code would be changed to take into account the extra allowance you are entitled to, which would mean that you pay less tax on your wages. And don’t forget that with DSR Tax Refunds’ tax rebate service, you could claim back even more of your overpaid tax.
If you want more information about whether these allowances apply to you then call our friendly and professional team on 0330 122 9972 and we will put our tax expertise to work on your behalf!
This page was last updated on 09/04/2019.