HM Revenue and Customs (HMRC) has announced a significant increase to the tax-free allowance available for blind individuals and those who are severely sight impaired across the United Kingdom.
What is the Blind Person's Allowance?
The Blind Person's Allowance is a specific tax benefit that is added directly to your yearly Personal Allowance. This is the amount of income you can earn each year before you start paying any Income Tax. For the current tax year, this allowance has been set at £3,130.
When combined with the standard Personal Allowance, this means an eligible individual could have a total tax-free allowance of £15,700. This represents an increase from the previous year's Blind Person's Allowance of £3,070.
Eligibility and How to Claim
Claiming this allowance is not automatic; you must apply for it. The eligibility criteria differ slightly depending on where you live in the UK.
If you live in England or Wales, you can claim if you are registered with your local council as blind or severely sight impaired and you possess a certificate or similar document from your doctor confirming this condition.
For residents of Scotland and Northern Ireland, you are eligible if you have a certificate stating you are blind or severely sight impaired and you cannot perform work for which eyesight is essential.
A crucial feature of this allowance is its transferability. If you do not pay tax or do not earn enough to use your full Blind Person's Allowance, you can transfer the unused portion to your spouse or civil partner. If both partners are eligible, you can each claim the full allowance.
Don't Miss Out on Backdated Claims
Many may be unaware that claims can be backdated by up to four tax years. This means if you were registered blind or severely sight impaired in or before the 2020-21 tax year, you could be eligible for a significant back payment. For a basic rate taxpayer at 20%, this could amount to up to £2,712.
This provision also applies in cases where a partner has passed away before the claim was made, allowing the surviving partner to make a claim on their behalf, provided all other conditions are satisfied.
The Royal National Institute of Blind People (RNIB) confirms that this allowance directly increases the amount of income a person can have before they become liable for tax, offering vital financial support.
