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What is the Personal Allowance?
The Personal Allowance is the amount of income each individual is entitled to receive free of tax each year. Find out more about the Personal Allowance on our accounting glossary.
Example: How Frances uses her Personal Allowance to calculate her taxable profit
Frances is a self-employed photographer who is completing her Self Assessment return for 2023/24. She needs to know two things in order to work out how much of her profit she has to pay Income Tax on:
- Her total profit for the year: £30,432
- The Personal Allowance: £12,570
Her taxable profit is:
£30,432 - £12,570 = £17,862 taxable profit
Frances will only pay Income Tax on £17,862 of her earnings.
Previous Personal Allowance
Personal Allowance for people born after 6th April 1948
| 2023-24 | £12,570 |
| 2022-23 | £12,570 |
| 2021-22 | £12,570 |
| 2020-21 | £12,500 |
| 2019-20 | £12,500 |
| 2018-19 | £11,850 |
| 2017-18 | £11,500 |
| 2016-17 | £11,000 |
| 2015-16 | £10,600 |
| 2014-15 | £10,000 |
| 2013-14 | £9,440 |
| 2012-13 | £8,105 |
Previous income limits
| 2023-24 | £100,000 |
| 2022-23 | £100,000 |
| 2021-22 | £100,000 |
| 2020-21 | £100,000 |
| 2019-20 | £100,000 |
| 2018-19 | £100,000 |
| 2017-18 | £100,000 |
| 2016-17 | £100,000 |
| 2015-16 | £100,000 |
| 2014-15 | £100,000 |
| 2013-14 | £100,000 |
| 2012-13 | £100,000 |
Disclaimer: The content included on this page is based on our understanding of tax law at the time of publication. It may be subject to change and may not be applicable to your circumstances, so should not be relied upon. You are responsible for complying with tax law and should seek independent advice if you require further information about the content included on this page. If you don't have an accountant, take a look at our directory to find a FreeAgent Practice Partner based in your local area.