What are the personal tax allowances for under 65’s and over 65’s?

Under 65’s | £9,440

If you are running a business as a sole trader or partnership then your level of profit and other income will determine whether or not you are using the full allowance.

However, but if your profits are exceeding this, have you checked to make sure that your spouse is also fully utilising their allowance?

It may be possible to pay a wage or share profits to ensure that no allowances remain unused, thereby reducing your overall tax and national insurance bill.

If you are trading through a family owned limited company, again have you checked that your salary, benefits in kind and dividends are making full use of your personal allowance.

This is another opportunity to ensure that allowances relating to a spouse are fully utilised.

Over 65’s | £10,500 or £10,660

OAP’s generally enjoy a higher level of allowances but as you might expect this is subject to a cap of £26,100 beyond which the extra allowances are clawed back.

Sharing income between spouses may be a little more difficult for those who have retired but there may be scope to arrange investments such that interest etc. is switched from one spouse to another and or to switch investments from income producing to those with capital growth.

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