Each year, millions of pounds in tax relief go unclaimed in the UK. Whether it’s due to lack of awareness or perceived complexity, many people are missing out on money they’re entitled to. In this article, we break down five often-overlooked tax allowances—and how the SavingTax app can help you take advantage of them.
1. Marriage Allowance
If you’re married or in a civil partnership, you could transfer a portion of your Personal Allowance to your partner and reduce your overall tax bill—potentially saving up to £252 per year.
Who’s eligible?
- One partner earns below the Personal Allowance (£12,570)
- The other is a basic-rate taxpayer
Claim easily via HMRC—or use SavingTax to check and track eligibility.
2. Blind Person’s Allowance
This allowance gives an extra £3,130 (2025/26) on top of your Personal Allowance if you’re registered blind or severely sight-impaired.
Few people know:
- You can transfer it to your spouse if you don’t use it
- It can be backdated if you were eligible in previous years
3. Rent-a-Room Relief
If you rent out a furnished room in your home, you could earn up to £7,500 a year tax-free under this scheme.
This applies even if you only rent for part of the year (e.g., via Airbnb).
4. Dividend Allowance
Got income from shares? The first £500 of dividend income (as of April 2025) is tax-free. While the allowance has reduced in recent years, it’s still valuable for side investors and small business owners.
5. Personal Savings Allowance (PSA)
You can earn interest on your savings tax-free—up to £1,000 for basic-rate taxpayers and £500 for higher-rate taxpayers.
Many people don’t realise that the PSA applies to interest from current accounts, regular savings, and bonds — but not ISAs, which are already tax-free.
How SavingTax Helps
Navigating these allowances can be confusing—but SavingTax simplifies it. The app helps you:
- Identify applicable tax reliefs
- Track your usage throughout the year
- Get guidance on how to claim
- Avoid missing deadlines or opportunities
Conclusion
Small tax savings add up over time—and many are just waiting to be claimed. Download the SavingTax app today and ensure you’re not leaving money on the table.
Disclaimer: The information in this article is for general guidance only and does not constitute financial or tax advice. Tax laws are complex and subject to change. Your personal circumstances will affect the tax you pay. SavingTax is designed to help you understand tax rules and opportunities, but for personalised advice, you should consult with a qualified tax advisor or financial planner. HMRC’s website (gov.uk) is also a valuable resource for detailed tax information.