What’s your personal allowance this year?
Your personal allowance in the 2014/15 tax year was set at £10,000, this meant that you could make £10,000 without getting taxed on the income.
This has now been raised to £10,600, which means you can earn an extra £600 without being taxed on this amount. If you make more than this personal allowance you will only be taxed on the amount above your personal allowance.
However, you lose your personal allowance when your income is above £100,000. For every £2 of your income above £100,000 you lose £1 of your personal allowance until there is nil left.
National Insurance will still be taken from your earnings so this does not affect National Insurance.
If you have any other questions about your personal allowance contact us now and don’t forget to follow our blog to stay up to date