Skip to main content

Glossary

Personal allowance

An amount of income taxed at zero before any band applies, deducted before the rates are worked out.

Tax termalso: tax-free allowance

Applying the bands to gross income rather than to income after the allowance is the most common arithmetic error in a hand calculation. Some allowances taper away above a threshold, which creates an effective marginal rate no rate table mentions.

Keep reading

Everything here states what it does not cover.

A guide that applies to one country and one tax year says so at the top, and cites the section it relies on. Read one before you decide whether any of this is for you.

Decision support, not tax advice. A professional reviews before anything is filed.