Most people have a Personal Allowance that determines how much income tax we will have to pay on our earnings. How much Income Tax you pay in each tax year depends on:
/ how much of your income is above your Personal Allowance
/ how much of your income falls within each tax band
The current tax year is from 6th April 2024 to 5th April 2025.
The table below outlines the Personal Allowance tax bands based on income.
| Your Personal Allowance 2024/2025 | |||
|---|---|---|---|
| Tax Band | Taxable Income 2024/2025 | Tax Rate | |
| Personal Allowance | Up to £12,570 | 0% | |
| Basic rate | £12,571 to £50,270 | 20% | |
| Higher rate | £50,271 to £125,140 | 40% | |
| Additional rate | Over £125,140 | 45% | |
For further information please see https://www.gov.uk/income-tax-rates
Married Couple’s Allowance
If you are married or in a civil partnership and living together and at least one of you were born on or before 6 April 1935 then you could be eligible for Married Couple’s Allowance. The allowance could cut your tax liability. The Marriage Allowance allows you to transfer a proportion of your Personal Allowance to your spouse or civil partner. The easiest way to check how much you’ll get is to use the calculator on the GOV.uk website. The following factors will determine whether or not you can apply:
/ You are married or in a civil partnership and living together.
/ You don’t earn anything or your income is £12,570 or less.
/ Your partner’s income is between £12,571 and £50,270 (or £43,662 if you’re in Scotland).
For further information please see https://www.gov.uk/marriage-allowance
