Skip to main content The Personal Allowance: what you need to know
The Personal Allowance is the amount of income each individual is entitled to receive free of tax each year. The basic Personal Allowance for the tax year 2024/25 is £12,570.
If you earn more than £100,000 during the tax year, HMRC will reduce your Personal Allowance by £1 for every £2 earned over £100,000.
Example: how to use the Personal Allowance to calculate taxable profit
A self-employed photographer is completing their Self Assessment return for 2024/25. They need to know two things in order to work out how much of their profit they have to pay Income Tax on:
- Their total profit for the year: £30,432
- The Personal Allowance: £12,570 for most taxpayers
Their taxable profit is:
£30,432 - £12,570 = £17,862 taxable profit
They will only pay Income Tax on £17,862 of their earnings.
Previous Personal Allowance rates
Previous Personal Allowances for people born after 6th April 1948:
| 2024-25 | £12,570 |
| 2023-24 | £12,570 |
| 2022-23 | £12,570 |
| 2021-22 | £12,570 |
| 2020-21 | £12,500 |
Previous income limits
| 2024-25 | £100,000 |
| 2023-24 | £100,000 |
| 2022-23 | £100,000 |
| 2021-22 | £100,000 |
| 2020-21 | £100,000 |
