Sarah Bradford explores how clients can maximise tax-free income in 2025/26 by making use of their allowances.
The 2025/26 tax year started on 6 April 2025, and a new tax year means a new set of tax-free allowances.
Where possible, clients will want to organise their affairs to make the most of their allocation and maximise their tax-free income in 2025/26. As there are different allowances for different types of income (and also for gains), having multiple income streams offers the opportunity to make best use of the various allowances.
1. Personal allowance
This is arguably the most useful of the income tax allowances as it can be used against any type of income. However, unlike some other allowances, it is not available to high earners.
For 2025/26, the personal allowance is set at £12,570. Where available in full, an individual will
