Personal, Business, and Trust Tax Support

Offset Personal Allowance in Personal Tax

The order of Personal Allowance offset has never been prescribed by law.  Until 2016/2017, it was most beneficial to offset Personal Allowance against Non Savings/Savings and Dividend income. This changed after dividends and savings allowances were introduced, as well as the removal of tax credits on dividends and tax deducted on interest
You can examine this in the rate band analysis report, which is one of the backing schedules that accompany the main tax computation:
You can also select
Form
, then
Test in Live
 to try a test submission.  If our calculation is different to HMRC's by more than £5, you will get a rejection message. If successful, it means we calculated the same liability as HMRC and, if you attempt to change this, the return will not file online.
To compare the tax position with the Personal Allowance allocated against different income:
  1. Select
    Edit
    , then
    Schedule Editor
    .
  2. Select
    Personal Allowances
    .
  3. Select the
    Other
     tab
  4. Select
    Personal Allowances and Deductions Allocation
    .
    note
    If you do not have permission to access this, you will need to enable user permission in the Database Security module.
  5. Change the allocation of allowance.
    note
    The last two rows will show the original and revised liability and will update in real time when you make changes.

This article applies to:

  • PRODUCT: Digita Personal Business and Trust Tax