Personal Allowance
Personal Allowance - how much can you earn tax-free?
Every UK tax resident is entitled to a Personal Allowance - the amount of income on which no income tax is due. We explain the current thresholds, rates and reliefs so you know exactly how much you can earn without paying tax and how to legally reduce your tax burden.
Personal Allowance
What is the Personal Allowance in the UK?
The Personal Allowance is the amount of income you can earn each year without paying income tax. For the 2026/27 tax year it stands at £12,570 - the same as in previous years. The UK government has frozen this threshold at £12,570 until April 2028, which means that despite rising inflation the allowance will not increase any time soon.
- Standard Personal Allowance: £12,570 per year (frozen until 2028)
- The UK tax year runs from 6 April to 5 April
- The allowance is reduced by £1 for every £2 of income above £100,000
- At an income of £125,140 or more the Personal Allowance drops to £0
Tax rates
Income tax bands and rates in England
The income tax system in England, Wales and Northern Ireland is based on four bands. Scotland applies its own scale with additional rates. Remember that each band only applies to the portion of income that falls within it - not your entire earnings.
- 0% - income up to £12,570 (Personal Allowance)
- 20% - income from £12,571 to £50,270 (basic rate)
- 40% - income from £50,271 to £125,140 (higher rate)
- 45% - income above £125,140 (additional rate)
Tax reliefs
Marriage Allowance and other reliefs
In addition to the standard Personal Allowance there are other ways to reduce your tax bill. Marriage Allowance lets you transfer up to £1,260 of your unused allowance to your spouse or civil partner, provided they earn within the basic-rate band. Blind Person's Allowance is an extra relief for those who are severely sight-impaired, raising the tax-free amount by £2,870.
- Marriage Allowance: transfer up to £1,260 to your partner
- Your partner must earn within the basic-rate band (up to £50,270)
- Blind Person's Allowance: an additional £2,870 tax-free
- We can check which reliefs you are entitled to
UK vs Poland
Comparison with the Polish tax system
In Poland the tax-free amount is 30,000 PLN per year, which at the current exchange rate is roughly £6,000 - less than half the UK's £12,570. The band structures also differ: Poland has two rates (12% and 32%), while the UK has four. The Polish tax year follows the calendar year, whereas the UK tax year runs from 6 April to 5 April.
- Personal Allowance in the UK: £12,570 vs Poland: 30,000 PLN (~£6,000)
- UK: 4 tax bands (0%, 20%, 40%, 45%)
- Poland: 2 tax bands (12% and 32%)
- We handle income in both countries and advise on the best approach
Questions about the Personal Allowance?
We'll check how much tax you could save.
Describe your situation and we will explain which reliefs you qualify for and help you make the most of them. Free consultation, no obligation.