There are a range of tax allowances that you can claim in the UK, which enable you to make a tax-free income. This is not the same as making a gross income – if you exceed the incomes listed below for your relevant allowances, you will then have to pay the necessary taxes, but you do get to make a certain level of allowance before your tax liabilities kick in.
|Who can claim?
|How much? (2022/23)
|Anyone earning less than £125,140
|Anyone who earns self-employed income
|Capital Gains Tax Allowance
|Anyone making profit from selling assets
|Spouses/civil partners – one earning >£12,500, the other >£50,270
|Landlords, most often buy-to-let landlords
|Rent a Room scheme
|Anyone who’s earned dividends
Your salary is your gross income. For example, if your salary is £24,000, this is your gross pay, but you won’t actually receive £24,000 into your bank account each year. You’ll receive your net income – £24,000 gross income minus deductions.