Carry forward PAYE personal allowance?

intalex

Hi,

Anyone know if one can carry forward their PAYE personal allowance following a tax year of unemployment? If so, anyone know where on the HMRC website this is clarified/stated?

Thanks in advance!
I

scottishblondie

The £6475 allowance per tax year of tax free income cannot be carried forward to the next tax year regardless of your circumstances.

Mikeyorks

intalex wrote: »

Anyone know if one can carry forward their PAYE personal allowance following a tax year of unemployment?

Afraid not .. it's use it or lose it.

The OH would be carrying forward £0.25M otherwise!

intalex

Mikeyorks wrote: »

Afraid not .. it's use it or lose it.

Shame - would have been quite helpful to those out of employment an entire tax year (e.g. recession time), and finally commencing work the following tax year.

As it is, they'd be catching up on "lost" earnings due to unemployment, but without the benefit of a personal allowance in lieu of those earnings, which makes it a bit harsh!

zygurat789

intalex wrote: »

Shame - would have been quite helpful to those out of employment an entire tax year (e.g. recession time), and finally commencing work the following tax year.

As it is, they'd be catching up on "lost" earnings due to unemployment, but without the benefit of a personal allowance in lieu of those earnings, which makes it a bit harsh!

Unemployment benefit is, of course, taxable so it is the personal allowance which is effectively used to stop tax being paid on dole money.