Advent Day 20 – Personal Tax Allowances

 Let’s dive into the topic of UK Personal Allowance today.

The Personal Allowance is the amount of income you can earn each year before you start to pay Income Tax. For the tax year 2021/2022, this amount is £12,570.

This means that you won’t pay any tax on the first £12,570 you earn each year.Remember, the Personal Allowance can be affected by factors such as your income level.

If your income exceeds £100,000, the allowance decreases by £1 for every £2 you earn over £100,000, until it reaches zero. Furthermore, blind people receive an extra allowance, and married couples or civil partners may also be able to share their allowances in certain circumstances.

It’s always important to understand your tax allowances to ensure you’re not paying more tax than you should.

Stay tuned for more tax-related updates and helpful financial advice! #UKTax #PersonalAllowance #FinanceTips