In the UK, the personal allowance for the 2021/22 tax year is £12,570. This amount is the amount of money a person can earn before having to pay income tax. The standard personal allowance varies from country to country and from situation to situation.
In the UK, other allowances are available, such as marriage allowance where a person can transfer £1,260 of their personal allowance to their husband, wife or civil partner, and blind person's allowance which is £2,390 added to their personal tax-free allowance.
A single person, full-time employee who earns £25,000 per year is entitled to the standard personal allowance of £12,570 for the 2021/22 tax year. This means that she can earn up to £12,570 without having to pay any income tax. Any income above this amount is subject to income tax at the applicable rate.
Example:
