Personal Tax Allowance: Who Qualifies and What You Get
Learn how much of your annual income is tax-free and how to ensure you aren't paying more than you should.
The Personal Tax Allowance is a set amount of money you can earn each year before you start paying income tax.
Who it's for
Most residents in the United Kingdom qualify for this allowance.
What you get
You can earn up to £12,570 per year without having to pay income tax on that amount. This is your tax-free earnings limit for the year.
What it costs you
There is no cost to receive this allowance. It is applied automatically to your earnings.
The catch to know
You must keep an eye on your tax code. A tax code is a set of numbers used to calculate how much tax is taken from your pay. If your tax code is incorrect, you might end up paying more tax than you actually owe.
How to apply
- Check your payslip to see your current tax code.
- Verify that your earnings fall within the tax-free limit.
- Contact the relevant tax authority if you notice your code looks wrong.
- Visit the official portal for more details: https://www.gov.uk/income-tax-rates