The level of your personal allowance changes each year. In the current tax year 19-20 the personal allowance is £12,500. However The personal allowance is reduced by £1 for every £2 of income above £100,000.

Blind people can claim an extra personal allowance of £2,450 and there are no age or income restrictions. Married couples may also have the option for one partner to transfer part of their personal allowance to their other half that will give them tax relief up to £250. However there is a condition that the partner doing the transfer has income below the basic rate tax threshold.

If you run a family business, consider ways to maximise the use of your spouse’s or other family members’ personal allowances by employing them in the business. Care needs to be taken to ensure that employment complies with PAYE requirements, other legislation and that the employment can be justified for commercial reasons.

Make use of personal allowances