Some allowances need to be claimed manually
Some tax-free allowances are applied automatically when you’re taxed at source (a.k.a PAYE) but others you need to apply for manually via HMRC or on your tax return. Examples are the marriage allowance and the maternity allowance.

If you earn £100k+, you’re not entitled to tax-free income
Almost everyone is entitled to a tax-free allowance called the Personal Allowance. It means the first £12,570 of your main income is Income Tax-free. But when you earn over £100,000, you start to lose your entitlement to it.

Capital Gains Tax is taxed at different rates
Depending on the asset you sell, you’ll be taxed at different rates if you make a profit. The rates vary for property, shares and crypto. Read more about Capital Gains Tax rates.

You can’t claim back mortgage interest on rental income
Since 2020, landlords are no longer able to claim back mortgage interest on their rental income. Instead, you can claim a tax credit to offset your costs. Read more about mortgage interest changes.

You can claim either allowances or expenses, but not both
Tax allowances and expenses are both used to improve your tax efficiency. Deducting your business expenses ensures that you only pay tax on your profits, but if you do this, be aware that you won’t be able to claim a tax-free allowance as well, whether this is the Trading Allowance, CGT allowance, and more.