What is the 2025/2026 Personal Allowance?

The Personal Allowance for the tax year 2025-26 has been established at £12,570 and will be applicable starting from April 6th 2025.

Unless the government announce a change the standard £12,570 personal allowance should be in use up to the 5 April 2026.

For the tax year starting April 2025, if your personal allowance is £12,570, you do not have to pay income tax on any earnings below this limit.

If your income goes beyond the tax-free allowance for the year 2025-26, you will be liable to pay tax based on your income level through PAYE (Pay as you Earn) or from self-employment.

The personal allowance is automatically given by HMRC to all individuals, but it can be reduced or increased from the standard £12,570 depending on a variety of personal circumstances.

Making sure your personal allowance is accurate has added importance for employed individuals because it’s used to calculate your 2025-26 tax year tax code which informs your employer (or pension provider) how much tax to deduct.

Why is your 25/26 tax year personal allowance important?

The personal allowance is the most valuable of all tax free allowances and can be used against different types of taxable income like employment, self employment and rental.

Your personal allowance can be adjusted by HMRC to take into account factors that can either result in you paying more or less income tax.

Some common reasons why your 25/26 personal allowance may be adjusted include:

• Underpaid tax from a previous tax year.
• Job related employment allowances.
• Having more than one source of income through pay as you earn.
• Rental income from property.
• Employer company benefits in kind.

A personal allowance that is incorrect usually causes an underpayment or overpayment of tax that can be avoided if it’s adjusted by HMRC in a timely manner.

Comprehending the impact of your personal allowance on your tax obligations can aid in effectively managing your 2025/2026 tax year budget.

How do I check my 25/26 tax year personal allowance?

HMRC gives you a breakdown of your personal allowance for the 25/26 year online via their app or your own personal tax account. You can use the same options to find your tax code.

Your tax code reflects the personal allowance you have been given, for example the 1257L tax code means you have a tax free allowance for that year valued at £12,570.

If you have doubts about the accuracy of your personal allowance or tax code it is advisable to get in touch with HMRC to have it checked and confirmed.

One way to accomplish this is by using HMRC’s online based tax code verification tool found here https://www.taxrebateservices.co.uk/check-what-your-tax-code-means-hmrc, which can help you avoid spending time on hold while waiting to speak with a representative over the phone.

When does the 25/26 personal allowance start and stop being used?

The 25/26 personal allowance is used from the start of the tax year which is on the 6 April 2025.

It remains effective until 5 April 2026, unless there are alterations made by the government or changes in your personal situation.

What are the tax bands for the year 2025/2026?

The tax rates and income tax brackets for the tax year 2025/26 are expected to remain unchanged from the previous year.

Starting from April 6, 2025, once you exceed the tax-free threshold of £12,570 the subsequent income tax rates will be applicable:

• The standard tax rate is 20% for income ranging from £12,571 to £50,270.
• For earnings between £50,271 and £125,139, the rate of tax increases to 40%.
• Any income above £125,140 is subject to the additional rate which is set at 45%.

Scotland has a variety of tax rates and bands in place which are often different. In the fiscal year of 2025/26, the tax rates and bands for Scotland are outlined below:

• The income bracket of £12,571 to £14,876 is subject to a Starter Rate of 19%.
• Income ranging from £14,877 to £26,561 falls under the Basic Rate of 20%.
• The Intermediate Rate of 21% applies to income between £26,562 and £43,662.
• The Higher Rate of 42% is applicable to income in the range of £43,663 to £75,000.
• An Advanced Rate of 45% is imposed on income exceeding £75,001 but not exceeding £125,140.
• Income of £125,141 and above is taxed at the Top Rate of 48%.

Are there any other tax free allowances for the 25/26 tax year?

In the 2025-26 tax year, there are other possible sources of tax-free income apart from the tax-free amount received from your personal allowance.

To minimise your income tax liability for the 2025-2026 tax year, it is advisable to make use of all available tax-free allowances and reliefs.

Typically tax free allowances need to be used before the end of the tax year on 6 April 2026 or you can lose the benefit of allowance.

Not all tax-free allowances and reliefs are automatically applied by HMRC like the personal allowance, placing the responsibility on you to understand what you need to claim and any important dates associated with it.

Our guide on tax-free income, available at https://www.taxrebateservices.co.uk/tax-faqs/income-tax-rebates-tax-refunds/tax-free-income, provides further information on common types of income that can either be fully or partially exempt from tax.

2025/2026 UK tax year dates

We have listed below some of the important 2025/2026 UK tax year dates for PAYE and self assessment taxpayers:

• 6 April 2025: Start of the 25/26 tax year.
• 6 April 2025: First day for submissions of PAYE tax rebate claims for the previous tax year or years and filing of the self assessment tax returns.
• 31 May 2025: Employers deadline for providing form P60 for the 2025/2026 tax year to each employee.
• 31 October 2025: The self assessment deadline for tax returns in a paper format for the 24/25 tax year.
• 31 January 2026: The 24/25 self assessment deadline for online tax returns.
• 31 January 2026: The payment of tax owed to HMRC through self assessment from the 24/25 tax year.
• 5 April 2026: Last day for HMRC to accept a PAYE tax rebate claim from four years ago.
• 5 April 2026: End of the 25/26 tax year.