Many of the various tax rates and allowances change each April 6th, almost without being noticed. Here is a summary of this year’s changes to our Income Tax Allowances.
In 2017/18 you were allowed to earn £11,500 pa before paying Income Tax. This allowance has been increased to £11,850 pa.
In 2017/18 you were allowed to transfer up to £1,150 of any unused Personal Allowance to your spouse or civil partner. This allowance has increased to £1,185 pa. and making use of it could save you £237.00 pa in tax.
Married Couples Allowance
This addition allowance is available to you if you or your partner were born before 6/4/1935. This allowance has increased from £8,445 to £8,695 pa (Relief at 10%). An income limit applies, which has also been increased.
Blind Person’s Allowance
This additional allowance has been increased from £3,260 pa to £3,360 pa
This allowance has reduced!! In 2017/18 you were allowed to receive £5,000 pa in Dividends before paying Dividend Tax. This allowance has reduced so that you are now allowed to receive only £2,000 pa in Dividends tax-free.
Personal Savings Allowance
This allowance has remained unchanged, however it is worth remembering that basic rate taxpayers can receive up to £1,000 savings interest, tax-free. Higher rate taxpayers can receive up to £500 savings interest, tax-free.
If you need any help understanding any of these allowances, and how they may apply to you please CLICK HERE to contact us and we will be very pleased to help.