Some landlords can earn up to £7,500 threshold tax-free - can you?

The amount of income tax that a person pays will depend on how much of their taxable income is greater than their Personal Allowance, as well as how much of their taxable income falls within each band. At the time of writing, in the 2019 to 2020 tax year, the standard Personal Allowance is £12,500. This means that it’s only once one’s taxable income exceeds this amount that they need to pay tax on it. There are some instances when a person’s tax-free allowance may differ.

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For instance, some people may be able to claim the Marriage Allowance.

This allows one person to transfer 10 per cent of their Personal Allowance to their spouse or civil partner.

Another tax-free allowance which can be claimed is the Blind Person’s Allowance.

On the other hand, it may be that a person with a high income ends up with a reduced or no Personal Allowance.

That’s because it reduces by £1 for every £2 of taxable income that one’s adjusted net income is above £100,000 per year.

Those who have an annual taxable income of £125,000 or more would therefore not get the Personal Allowance of £125,000.

Income tax allowance: Person on calculatorhe Personal Allowance is £12,500 but some landlords may claim an extra

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