Make the Most of Your Tax-Free Allowance
At Numeric, we believe in making your money work smarter. One of the simplest yet often overlooked ways to do this is ensuring you fully utilise your tax-free allowances each year.
While it may seem like a small matter, when used correctly, these allowances can accumulate to thousands of pounds in savings, especially for small business owners, freelancers, landlords, or anyone with multiple income streams.
Here are some key allowances you should be aware of, along with suggestions on how we can help you maximise them:
Your Personal Allowance
Most people in the UK can earn up to £12,570 tax-free. If you are self-employed or a director of a limited company, the way you pay yourself can impact how much of this allowance you can use.
Numeric Tip: Many of our clients choose to pay themselves a combination of salary and dividends to stay within thresholds and minimise their overall tax burden.
The Dividend Allowance
If you are a company director or shareholder, you can currently receive up to £500 in dividend income tax-free (as of 2025). This amount has been reduced from previous years, so many people may overlook it.
Numeric Tip: Planning how and when you draw dividends, especially around the end of the tax year, can help reduce your tax liability and prevent you from moving into higher tax brackets.
The Trading Allowance
Do you have a side hustle? The £1,000 trading allowance allows you to earn a modest amount from self-employment without paying tax or even needing to register.
Numeric Tip: If your side income is occasional consulting, tutoring, or creative sales that total under £1,000, you might not need to report it at all.
You may be entitled to Property Allowance
Depending on your other property income if rent out a driveway, or have a smaller earning from Airbnb, the first £1,000 per annum could be tax-free.
Numeric Tip: This allowance can be especially beneficial for many local clients, particularly during tourism peaks in the summer.
What This Means for You
Tax planning is not just about reducing what you owe; it’s about making informed choices throughout the year. When you work with Numeric, we don’t just tick boxes at year-end. Our proactive, hands-on approach guides you in utilising the system legally and strategically to your advantage.
Ready to find those hidden gems.
We enjoy helping local businesses and individuals make informed financial decisions. Whether you are a sole trader, landlord, or limited company director, we will guide you through the allowances that apply to you.
Book a free consultation and let us ensure you are not missing any allowances that could be reducing your tax bill.