Stressed by tax?
Get Earnr Pro

Personal Allowance

[ˈpɜːsᵊnᵊl əˈlaʊəns]



Personal Allowance is the amount of tax-free income given to individuals in the UK. The standard amount for 2023/24 is £12,570 but can vary for certain people.

More detail:

The Personal Allowance is a tax-free allowance given to individuals in the United Kingdom. It is the amount of their income that is exempt from Income Tax.

For the 2023/24 tax year, the standard Personal Allowance is £12,570. However, if an individual earns over £100,000, their personal allowance reduces by £1 for every £2 they earn over £100,000. Thus, an individual who earns over £125,140 gets no Personal Allowance.

Any changes to the Personal Allowance is announced in the Autumn Statement.

If people claim Marriage Allowance or Blind Person’s Allowance, their Personal Allowance can be larger than the standard.

Back to Taxionary

You might also like...

decorative image for a blog

What is IR35 and do I need to worry about it?

There are loads of different tax laws in the United Kingdom. IR35 is very important to freelancers and contractors but can be a little confusing. Here, we explain simply what IR35 is and who it can affect.

Read more
decorative image for a blog

Flat rates for mileage vs actual expenses. What is better?

Self-employed individuals can use two different methods to expense business vehicle costs. Here, we investigate the positive and negatives for both methods and which one might be right for you.

Read more
decorative image for a blog

What is the EIS and how does it work?

If you are looking to invest in small and medium sized businesses, the Enterprise Investment Scheme (EIS) provides lots of tax reliefs for doing so. Here we discuss what it is and how it works.

Read more
Earnr logoDownload earnr