Personal Allowance: The £12,570 You Don't Have to Give to HMRC
Tax isn't usually associated with good news, so here's some: for most people, you can earn £12,570 a year without paying Income Tax. This is your Personal Allowance.
Think of it as HMRC saying, "We'll let you keep the first bit."
For 2026/27, the standard Personal Allowance is £12,570. If you earn £30,000, for example, the first £12,570 is tax-free and you pay tax on the remaining £17,430.
But, naturally, tax can't be quite that simple.
If your adjusted net income is over £100,000, your Personal Allowance starts to disappear. For every £2 you earn above £100,000, you lose £1 of your allowance. Once your income reaches £125,140, it's gone completely.
And if you have a job, pension and side business, you don't get a £12,570 allowance for each one. Sadly, HMRC hasn't introduced a loyalty scheme.
Your Personal Allowance is just one part of the tax puzzle, and other allowances and reliefs may also reduce your tax bill.
So, before assuming your tax bill is what it is, it's worth checking the numbers. You might be giving HMRC more than you need to!