What’s the Tax Free Personal Allowance in the 2018-19 Tax Year?
With the midnight of 31 January just a few weeks away, you should visit GOV.UK to check the deadlines for filing and paying UK tax returns. This is especially true if you’re dragged to self-assessment due to tax on high-income child benefit. But self-employed are not the only ones who need to file UK tax returns. This guide outlines changes in the tax-free personal allowance and their impact on tax-related concerns, including the need to complete a tax return.
Tax free personal allowance
2018-19 tax free personal allowance
New tax code
New tax bands
Tax Free Personal Allowance Explained
This is the amount you can earn before income tax needs to be paid. The chancellor of the exchequer usually changes the amount in the budget each tax year. So, what you earn before taxes in the previous tax year may not be the same this year.
Tax Free Personal Allowance for 2018-19 Tax Year
The personal allowance for the tax year 2018-19 is up to £11,850 and was applied last 6 April 2018. Basic tax rate payer in the 2018/2019 tax year only needs to pay roughly £70 less tax.
The higher rate threshold has also increased up to £46,350 from the previous £45,001, saving higher rate tax payers roughly £270 of tax.
You Get a New Tax Code
The change of personal allowance also means a change of tax code. HMRC will send you a P2 notice to inform you of the situation. 1185L is the new standard code.
It is important to check the notice for accuracy. HMRC can make mistakes and your employer could end up paying the wrong tax.
Tax Bands Change With the New Tax Year
With the new tax year starting, figures for tax bands also change. Check out GOV.UK for a list of new income tax bands.
Get Clear and Proper Advice on Uk Tax
With plenty of factors to consider before you can file UK tax returns, it is highly recommended that you speak to a tax expert from Taxback. Find out more about tax situation and avoid fines and penalties