The Blind Person’s Allowance is an additional tax-free allowance that can be received by blind persons without paying tax on it. It is added to an individual’s yearly personal allowance.
HM Revenue and Customs (HMRC) releases tables with tax rates for present and past tax years, including Blind Person’s Allowance. An individual can earn more with the help of a blind person’s allowance before paying any Income Tax.
Eligibility
For residents of England and Wales
- An individual must be registered with their local authority as blind or slightly sight impaired (SSI).
- Or the resident individual should have a certificate or document that says he/she is blind or SSI.
For residents of Scotland and Northern Ireland
- Those who wish to apply must be certified blind (medical certificate) by an eye specialist residing in Scotland or Northern Ireland.
- Or an individual cannot do any job that requires eyesight.
Blind Person’s Allowance for the year 2020/21 irrespective of an individual’s age is £2,500 earlier it was £2,450 for the year 2019/20
For example
Mr X is 55 years old, and he is registered blind with his local authority, and he has:
- an annual salary of £17,000
- A Personal Allowance of £13,000
- Blind Person’s Allowance of £2,000
So, he only needs to pay tax on £2,000 (£17,000 less the sum of £13,000 and £2,000).
The blind person’s allowance is more versatile than the personal allowance, because if the allowance exceeds the income of the blind person, it may pass to a spouse or civil partner. A full allowance is provided in the year the death of an individual takes place.
If a resident individual belongs to a low-income group or doesn’t pay any taxes, then he/she may pass any unused sum to their spouse/civil partner.
If an individual and his spouse both are eligible, then they’ll each get an allowance. Blind Person’s Allowance can help to reduce the tax liability of an individual.
For transferring allowance to your spouse or civil partner, you can call HM Revenue and Customs (HMRC) or use form 575.
An individual who is unable to live with his spouse or civil partner can still transfer his allowance in the following conditions:
- Working far away from home.
- If the spouse or partner is in residential care due to any disease or old age,
- Posting an Armed Force
- Being in jail
- Education or Training