There are a number of allowances and reliefs that might be able to help reduce your tax bill. Nearly everyone who lives in the UK is entitled to a personal allowance which is the amount of income you can receive each year without having to pay tax on it. There are a number of other allowances available and you may be entitled to receive more than one.
Tax reliefs work in a different way to allowances. If you spend money on certain things, the amount you spend can be deducted from your total income so that you end up paying less tax. You can claim tax reliefs in addition to any personal tax allowances that you are entitled to.
You can get tax relief on the contributions you make to a pension plan. If you let furnished rooms in your house you can receive tax relief through the rent a room scheme. You may be able to get tax reliefs on payments to other people, for example, some maintenance payments and payments to charities.
Your tax code will take into account any allowances you receive.