Question:
I understand the tax free allowance for 2012/13 is approximately £8,000. Being an IT contractor are there any legal tax-efficient vehicles available that will increase this tax-free allowance?
Arthur Weller replies:
Firstly, the income tax personal allowance was £8,105 for 2012/13. Secondly, for 2013/14 it is going to be £9,440. Thirdly, there is nothing you can do to increase this figure except to become 65 years old, or 75, in which case the personal allowance is a higher figure!
