Boylan & Dodd Allowances/Credits - 2001 and 2000/2001


The important thing to remember here is that the Tax Year 2001 is a short tax year, running from the 6th April 2001 to 31 December 2001. We have included BOTH the actual allowances that will apply in the tax year 2001 AND the notional allowances that would apply if the 2001 tax year ran for 12 months.

This is for comparative purposes. Thus the actual allowance is 74% of the notional, to reflect the shorter time span. The main exception to this is relief given to a widowed parent on the death of a spouse, which will be granted in full.

Please note that only a few allowances are given at the top rate of tax, while most allowances are given at the standard or low rate of tax. Allowances granted at the lower rate of tax are known as "credits"; indeed the move to a tax credit system is now complete.

We have highlighted all tax credits with an *.


Tax Free Allowances/Credits - ALL AMOUNTS BELOW ARE IN PUNTS
  2001 - ACTUAL 2001 - NOTIONAL 2000/2001
Single Personal Allowance 4,070* 5,500* 4,700*
Married Personal Allowance 8,140* 11,000* 9,400*
Spouse "Carer" Allowance (Note 1) 2,220* 3,000* 3,000*
Widowed Personal Allowance - no children 740* 1,000* 1,000*
One Parent Families
(in addition to Single Personal Allowance)
Note: restrictions where your child has income abolished from 6/4/2001. 		     

-- Widowed

 4,070* 5,500* 4,700*

-- Other one-parent families

 4,070* 5,500* 4,700*
PAYE Allowance 1,480* 2,000* 1,000*
Dependent Relative Allowance 163* 220* 220*
Carer Allowance (Incap. person) 7,400 10,000 8,500
Age Allowance (aged 65 or over)      

Single/Widowed

 592* 800* 800*

Married

 1,184* 1,600* 1,600*
Incapacitated Child Allowance
Note: restrictions where your child has income abolished from 6/4/2001.		 1,184* 1,600* 1,600*
Blind Allowance      

Individual

 2,220* 3,000* 3,000*

Both Spouses Blind

 4,440* 6,000* 6,000*
Blind People - Guide Dog Allowance 481 650 650
Trades Union Allowance
Note: For administrative purposes, the credit for 2001 will be added to the credit for 2002. 		74* 100* n/a
Widowed Parent Bereavement Allowance (Note 2) 10,000* to 2,000* 10,000* to 2,000* 10,000* to 2,000*
Revenue Job Assist Scheme (Note 3)      
- Year One

plus £1,000 for each qualifying child.		 2,220 3,000 3,000
- Year Two

plus £666 for each qualifying child.		 1,480 2,000 2,000
- Year Three

plus £333 for each qualifying child.		 740 1,000 1,000


Note 1

Spouse Carer Allowance - this allowance applies to married couples where one spouse works at home caring for a child, elderly or dependent person .

You are allowed to earn a small amount of income and keep the carer allowance. Alternatively, if it is more beneficial for you, you can ignore the home carer credit and instead transfer a portion of the low rate tax band to your spouse.



Note 2

Widowed Parent Bereavement Allowance - Widowed parents are entitled to an additional allowance on the death of their spouse. For the tax year 2000/2001, they get an extra £10,000 allowable as a tax credit at the standard rate of tax of 22%. This reduces in the following years by £2,000 per annum.

The allowance lasts for five years following the death of the spouse, on the reducing scale.

This relief is unaffected by the short tax year; full relief is given.

Note 3

Revenue Job Assist Scheme - An additional tax free allowance is available to people who have been unemployed for one year or more and take up employment. From 1 Jan 1999, the allowance is also available to people who have been in receipt of Disability Allowance or Blind Person's Pension for one year or more.

For the tax year 2001, the amounts in the main table above have been reduced by 74%.

Contact your tax office to obtain more details.