What is the income tax personal allowance for 2022?
WHAT IS A PERSONAL TAX ALLOWANCE? Much to the disappointment of HMRC, every tax year most UK taxpayers are entitled to a UK personal allowance on their taxable income. To put it simply, most people can…
5 Minute Read
Last Updated: 5th May 2022 | Created: 31st December 2012
WHAT IS A PERSONAL TAX ALLOWANCE?
Much to the disappointment of HMRC, every tax year most UK taxpayers are entitled to a UK personal allowance on their taxable income. To put it simply, most people can receive a certain amount of money before having to pay any income tax. This is what is known as a personal tax allowance.
If you’re struggling to get your head around personal tax allowances, GoSimpleTax is here to explain everything you need to know, simply and easily.
HOW MUCH IS THE STANDARD PERSONAL TAX ALLOWANCE?
The standard personal tax allowance amount is £12,570 for 2021/22 and 2022/2023. Any income you earn after that will be taxable. The amount of tax you pay after your personal allowance is dependent on how much you earn during a tax year. For example, If your income is above £100,000, basic personal allowance is reduced by £1 for each £2 you earn over the £100,000 limit, irrespective of age.
| Band | Taxable income | Tax rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Basic rate | £12,571 to £50,270 | 20% |
| Higher rate | £50,271 to £150,000 | 40% |
| Additional rate | More than £150,000+ | 45% |
If your tax affairs are a little more complex, for example, if you’re married or in a civil partnership and receive a marriage allowance, or for age-related or income-related reasons, then your personal allowance works a little differently. You could also receive tax-free allowances for:
- your first £1,000 of income from self-employment
- your first £1,000 of income from property you rent
HOW DO I GET MY PERSONAL ALLOWANCE?
Getting your personal allowance is simple. If you file a Self Assessment tax return, you will automatically receive your tax-free personal allowance.
Is there an easier way to file?
If you need to file a tax return GoSimpleTax is here to make things unbelievably simple. Forget about long-winded form-filling and unwelcome phone calls with HMRC. Simply enter the details of your income and expenses and we’ll create your tax return for you and submit it online directly to HMRC.
Access GoSimpleTax and discover a new free way of filing your return (HMRC approved), know what expenses will help you lower your tax bill and keep all your records online, safe & sound. Ready to file with one click. Start your free trial today!
Trusted by over 15,000 subscribers
You don't need to be an expert to complete your self assessment tax return.
Blog content is for information purposes and over time may become outdated, although we do strive to keep it current. It's written to help you understand your Tax's and is not to be relied upon as professional accounting, tax and legal advice due to differences in everyone's circumstances. For additional help please contact our support team or HMRC.
MANAGING YOUR FINANCES HAS NEVER BEEN SO EASY.
Start your Self Assessment tax return today for free.
Sign up Now6 great reasons to use Self Assessment tax return software
09 Sep 2022
9 golden rules of cutting costs
07 Sep 2022
UK non-resident’s guide to paying UK tax
22 Aug 2022
How GoSimpleTax Works
Register
Simply register for free with your full name and email address.
Select Your Income
Select the income you receive and follow the hints and tips for potential tax savings.
Validate Your Information
Validate your personal information and submit directly to HMRC to get confirmation in just seconds.
Work Anywhere, With Any Device
Gone are the days of fretting over a calculator surrounded by scraps of paper at the eleventh hour.
GoSimpleTax’s tax return software uses the information you upload in real time to calculate your income and expenditure, working out the tax you owe and sending you helpful notifications when there’s the possibility of a mistake.
"The software is intuitive and proved very easy to navigate. I found the whole process refreshingly simple. I saved a lot of money too!"
Steve J.
Ordained Presbyter
"Easy to use and value for money. Everything you need to do your tax."
Gordon J.
Self Employed
"It fills in all the forms and sends them to the Inland Revenue. Not expensive either. Takes the stress out of doing your tax return online."
Ross G.
Team Rector