Demystifying the personal allowance worksheet

A roundup of the Personal Allowance Worksheet and filing a tax return

12:50 19 October 2014

Everybody must be completely aware of their responsibility to act in accordance with the state’s tax system. Here, we break down what you need to know about the personal allowance worksheet. 

 

Personal allowance is the level above which you will be required to pay income tax on your annual income. If your income is less than your personal allowance, you are exempt from remitting income tax on your annual income. But how do you know? A personal allowance worksheet helps in making this calculation.

 

Filling a Tax Return for the HMRC

 

Filling tax returns seems intimidating at times, but this is inevitable. The HM Customs and Revenue (HMRC) does not wait until you have finished filing your tax return for the financial year. The HMRC has occasionally received bad publicity, but it still stands as the main authority.

 

The personal allowance worksheet is made up of twelve main sections. Fortunately, you only have to fill the sections applicable to your circumstances. Depending on your situation, you might be asked to provide details in some additional sections. When you are done completing the sheet, there are clear directives on what to do next – copying the figures, together with your tax returns figures – and transferring them to the tax computation summary sheets. 

 

The various types of incomes are outlined in the supplementary notes. The various tax bands are also indicated, plus a summary of the general income tax rate. 

 

Criteria for Qualifying for a Higher Personal Allowance

 

A personal allowance worksheet helps establish the tax situation for a diverse set of people. However, some people are directly entitled to a higher personal allowance. Such people include;

 

• All blind persons
• All persons aged 65 years and above
• Married couples where one of the persons was born before 6th April 1935. The rule holds good for civil partnerships too.