A little-known HMRC rule could boost your tax-free Personal Allowance by as much as £3,250 each year – all the way to a bumper £15,820.
It’s probably the single most important tax rule that defines how much money ends up in your back pocket each month – or the taxman’s.
That’s why the tax-free Personal Allowance for income tax being frozen for another five years until 2031 at the earliest is such a blow to working households in particular.
Instead of rising with inflation like it should, it will have been stuck at £12,570 for a decade by the time it’s finally due to be unfrozen.
That’s why HMRC rules that give you extra allowance are so vital to claim – and one scheme, if you’re eligible, will boost your tax-free income by £3,250 a year.
Blind Person’s Allowance is an extra amount of tax-free allowance available to those who are registered as legally blind.
It does not necessarily mean you need to be fully blind, as those who are legally blind may be severely sight impaired and qualify.
HMRC explains via gov.uk: “Blind Person’s Allowance is an extra amount of tax-free allowance.
“It means you can earn more before you start paying Income Tax.
“Blind Person’s Allowance is added to your yearly Personal Allowance – the amount of money you can earn before you start paying Income Tax.”
If you’re registered blind but don’t earn more than £12,570, you can still make use of the extra allowance by transferring it to a working partner.
To be eligible for Blind Person’s Allowance, you must be registered with your local council a blind or severely sight impaired, and need to have a certificate from a doctor as well.
HMRC adds: “If you and your spouse or civil partner are both eligible, you’ll each get an allowance.
if you’re living with your spouse or civil partner
whether or not your spouse or civil partner is blind
You can still transfer your allowance if you’re unable to live with your spouse or civil partner because of: