Top Self-Assessment Tax Return Allowances: Are You Missing Out?
woman-writing-taxes Did you know you can save your tax bills by claiming tax allowances? These allowances deduct money from your wages, savings, or income before you work out the amount of tax you owe. On the other hand, businesses can claim self-assessment tax return allowances against their sales, revenue, or income to reduce their yearly tax bills. Whether you're a sole trader or self-employed, you can make more cash to grow your business and save money on taxes by claiming these allowances. 1. Personal Allowance The personal allowance is the income you can earn yearly without paying tax to HMRC. For the year 2022–2023, the personal tax allowance is £12,570 . You'll have to pay tax if you earn more than this amount. Your taxable income should be £125,140 to qualify for the personal allowance. 2. Marriage Allowance Those individuals who are married (or in a civil partnership) and have less income than the standard annual personal allowance (£12,570) can cla...