Inland Revenue Tax Allowances

Everyone that works in the UK is given a tax allowance, the amount of your tax allowance can depend on your income, age, and circumstances. This article will provide more details on how to find out what your yearly tax allowance is and how you can check you are receiving all the allowances that you are entitled to.

Income Tax Allowances

Your personal allowances is the amount of income that you can earn before you need to start paying any tax. The tax allowance for the 2010/2010 tax year is £6,475 and this was not changed from the previous year. In 2008/2009 the tax allowance was £6,035. In the recent budge the new conservative and Lib Dem coalition announced places to increase the tax allowance by £1000 to £7475 starting from April of 2011.

Older people are given larger tax allowances. If you are between the age of 65 and 74 your tax free allowance for the 2010/2011 tax year is £9,490 and if you are over 75 you are given a slightly higher tax allowance of £9,640.  If however the income limit for receiving age-related allowances  is £22,900 or more.

Your Tax Code

Your tax code will reflect any allowaces and deductions that have been taken into account when determining your allowance for the year. You can use your tax code to check approximately how much you allowance is by taking the number within the tax code and multiplying it by 10. For example if you tax code is 647L, take the number ‘647’ and multiple this by 10 to give ‘6470’ . This is the amount of your allowance, and you do not need to pay any tax if you earn under this. If you have earned below this amount and have paid tax you can claim it all back.

12 comments

  1. Christine says:

    My parnter is 65 he gets full pension + invalidity benefit. I do care for him as well as work but wondering if there is a tax relief for myself.

  2. jacqueline anne williams says:

    i work for a mailing house and wear a uniform, other people have told me in my workplace that i can claim for washing the uniform, how do i go about this. thank you

  3. Andrew Leggate says:

    I am a PAYE employee, but I also receive rental income from my share of a UK flat. What expenses can I claim for in my self assessment? eg Accountants bill for creating an account for the flat, and for submitting a tax return onb my behalf in an earlier year?

  4. Caroline says:

    Hello, I receive Incapacity Benefit of £108.00 per week and that is the only benefit I get as I own my home and do not need housing benefit. My question is regards the recent death of my Mother and that I have been left monies which includes some shares and bonds. I am concerned as to whether the benefit I get of £108.00 per week means that with the extra income that I will become a tax payer or whether the £108.00 per week which is non-taxable is exempt from my tax allowance meaning that I can have income (over and above the Incapacity Benefit £5,400) of £7,475 which I believe is the current threshold? Thank you! Regards ~Caroline~

  5. Joseph Quint says:

    both my wife & i are in our 70s, she does not earn eneough pension to pay tax can i add her allowances to mine?

  6. Bob melling says:

    I have a current dispute with the hmrc over a previous tax code which I feel issubstancially incorrect.
    I have,following an equiry on these codes,received a new tax code 2weeks after my enquiry considerably worstening my financial position this will will cause considerable hardship.
    Before implementing a new code is the hmrc not obligated to respond to my dispute before implementing a new code?

  7. j.lewis says:

    can a man use his wifes unused tax allowance?

  8. ann says:

    when does allowance increase for low earners

  9. ann says:

    when does the the tax allowance increase to £10000

  10. Lana Dodds says:

    Hello,

    How do I claim back the tax for items I haev bought that I require for my job?

    • TaxFix says:

      Lana Dodds: You can either contact your local tax office who will change your tax code or send you a tax refund, or you can make a claim with your tax return if you complete one.

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