An amount deducted from an invoice, given to an employee for expenses, or a deduction for tax purposes. Different types of allowances serve various functions in accounting and taxation.
Income tax allowances are amounts that may be deducted from a taxpayer's gross income before calculating the liability to income tax. These allowances can significantly reduce the amount of tax an individual or couple is required to pay.
A detailed explanation of taxable income, along with examples, related terms, frequently asked questions, online resources, and further reading materials.
