Category Archives: Tax Allowances

Personal Allowance News, Tax Allowances

Marriage Transferable Tax Allowance

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David Cameron has announced a new change to the personal allowance for married couples from 2015.

The change will benefit couples where one half is paying tax at the basic rate (but not higher) and the other half has some unused personal allowance (i.e. they will be earning less than £10,000).

The person who is not using all of their personal allowance is able to transfer over up to £1,000 of it to their other half to use. This will give a benefit of £200 to the person paying the basic rate tax (20% of the £1,000).

So if you are not earning enough to take up your full personal allowance then you need to look into transferring this to your husband or wife so that they do not need to pay as much tax from 2015. You will have to apply online to use this transferable tax allowance but not only is it available to married couples it is also available to civil partnerships.

Paying Tax, Tax Allowances

60% Tax For Earnings Over £100k

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It is very easy to analyse figures when there are different factors involved and to come up with an equivalent tax figure. This equivalent figure is basically classed as the amount of earnings you will lose in tax as your earnings increase over various levels. Not only do you take into account the actual tax you are paying but also any difference in tax paid at a lower rate. Continue reading 60% Tax For Earnings Over £100k →

Tax Allowances

Over 65 Allowance Reduces With Income

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If you are over 65 and expecting to receive the higher rate of personal allowance due to your age, then you need to be aware that the increased personal allowance for those aged 65 and over (and indeed the even higher personal allowance for those aged 75 and over) can be reduced to the level of the basic personal allowance if your income is higher than a certain level. For the tax year 2011-12 this amount is £24,000 and for the year 2012-13 the amount is £25,400. Continue reading Over 65 Allowance Reduces With Income →

Tax Allowances

What Is The Personal Allowance for 2012-13?

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The personal allowance, i.e the amount of tax free income that you can earn, for the tax year 2012-13 is £8,105 for a person under the age of 65. This is subject to your earnings not exceeding £100,000 and has been increased from the previous year when the rate was £7,475. The aim is the have a personal allowance of £10,000 for everyone and this is being introduced gradually. Continue reading What Is The Personal Allowance for 2012-13? →

Tax Allowances

UK Tax Allowances 2011-12

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uk tax allowancesThe UK tax allowances for 2011-12 were, to a certain extent, significantly increased from the previous tax year. The government had set a target of increasing the personal tax free allowance for individuals to be £10,000 but this would be introduced gradually over a number of years. The standard personal allowance was increased by a full £1000 from the previous tax year. Continue reading UK Tax Allowances 2011-12 →

Tax Allowances

Personal Allowance for High Earners

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Before 6 April 201, everyone was entitled to the personal allowance so that they could earn the first tranche of their pay tax free. However for the tax year 2010-11, a cap was introduced for the tax free personal allowance that meant that people earning over £100,000 a year would either receive a reduced personal allowance or no personal allowance at all. Continue reading Personal Allowance for High Earners →