Prime Minister Andy Burnham has signalled he may “look at” the tax-free Personal Allowance in future, though he has backed away from making an iron-clad promise. Whatever happens under new Chancellor John Healey this winter, and regardless of any changes from next April’s new tax year, there are free allowances you can claim to cut your income tax bill for the current financial year.
The standard Personal Allowance has been frozen at £12,570 since 2021. The freeze is due to remain in place for 10 years between 2021 and 2031, and unless something changes, the threshold is set to stay at that level until at least 2028.
Blind Person's Allowance adds £3,130
Anyone registered as legally blind or severely sight impaired (SSI) with their local authority can apply to HMRC for Blind Person's Allowance. For the 2025-26 tax year, this is an extra £3,130 of tax-free allowance, meaning you can earn another £3,130 on top of the standard £12,570 without paying tax on it.
Earnings in this context can include rental income, not just a normal PAYE salary. At the 20 per cent basic rate, the allowance would save approximately £616 in tax.
Combining it with Marriage Allowance
If you are married or in a legal civil partnership, you can combine Blind Person's Allowance with Marriage Allowance. Marriage Allowance lets you transfer £1,260 of your Personal Allowance to your husband, wife or civil partner, giving them approximately £252 off their tax bill for the year.
The key combination involves a couple where one partner is eligible for Blind Person's Allowance and the other does not earn more than £12,570. In that situation, the lower-earning partner can transfer their unused tax allowance, adding another £1,260 and taking the total tax-free allowance to £16,960.
Alternatively, if you do not work or earn enough to pay income tax, you can transfer your Blind Person's Allowance to your partner, along with your Marriage Allowance, so your partner gets the benefit of both allowances.
What the government guidance says
The government explains: “Marriage Allowance lets you transfer £1,260 of your Personal Allowance to your husband, wife or civil partner. Your Personal Allowance is the amount you can earn before paying tax.”
“To benefit as a couple, you (as the lower earner) must normally have an income below your Personal Allowance - this is usually £12,570. Blind Person’s Allowance is added to your yearly Personal Allowance - the amount of money you can earn before you start paying Income Tax. You can transfer your Blind Person’s Allowance to your spouse or civil partner if you do not pay tax or earn enough to use all of your allowance.”
