Tax Articles

Tax Rebate Forms

Tax Rebate Calculator

Income Tax Calculator

How much Can I Earn before Paying Tax?

Everyone that works in the UK is given a tax free allowance. This is the amount that you can earn before you need to pay any tax. Your allowance is allocated using your tax code and you then receive this allowance evenly throughout the year within your pay packet. Often if you stop working part way through the tax year you do not receive your tax free allowance and can therefore claim a tax rebate.

Below is a table which shows the current tax free allowance and the allowances for previous years:

Income Tax allowances 2008-09 2009-10 2010-11
Personal Allowance (1) £6,035 £6,475 £6,475
Income limit for Personal Allowance Not applicable Not applicable £100,000
Personal Allowance for people aged 65-74 (1)(2) £9,030 £9,490 £9,490
Personal Allowance for people aged 75 and over (1)(2) £9,180 £9,640 £9,640
Married Couple’s Allowance (born before 6th April 1935 but aged under 75) (2)(3)(4) £6,535 Not applicable Not applicable
Married Couple’s Allowance – aged 75 and over (2)(3) £6,625 £6,965 £6,965
Income limit for age-related allowances £21,800 £22,900 £22,900
Minimum amount of Married Couple’s Allowance £2,540 £2,670 £2,670
Blind Person’s Allowance £1,800 £1,890 £1,890

(1) From the 2010-11 tax year the Personal Allowance reduces where the income is above £100, 000 – by £1 for every £2 of income above the £100,000 limit. This reduction applies irrespective of age.

(2) These allowances reduce where the income is above the income limit – by £1 for every £2 of income above the limit. For the 2008-09 and 2009-10 tax years they will never be less than the basic Personal Allowance or minimum amount of Married Couple’s Allowance. However, from the 2010-11 tax year the Personal Allowance for people aged 65 to 74 and 75 and over can be reduced below the basic Personal Allowance where the income is above £100,000.

(3) Tax relief for the Married Couple’s Allowance is given at the rate of 10 per cent.

(4) In the 2009-10 tax year all Married Couple’s Allowance claimants in this category will become 75 at some point during the year and will therefore be entitled to the higher amount of the allowance – for those aged 75 and over.

Anonymous - Wednesday, July 7th, 2010

i am 16 and paying £14 tax is this right?

TaxFix - Wednesday, July 7th, 2010

Anonymous: It depends on how much you are earning. If you earn below £6,475 a year you should be paying no tax, and if you are you can claim it all back.

John - Thursday, July 15th, 2010

I am a 62 year old male and was made redundant in Sept 09. I have not worked since. My only source of income is

Allen - Tuesday, August 17th, 2010

I am 75 and have income of less than £8000 per year (made up of a small personal pension and my state pension), but last month I was taxed on my personal pension. Is this right?

g - Saturday, October 9th, 2010

thanx

Paul Jackson - Friday, February 4th, 2011

My Mum & Dad have a total income from pensions of around £22,000. How are the allownaces applied and how much income tax will they pay

Hilary Edwards - Thursday, February 24th, 2011

My mother at 86 has just had an increase on the tax she is paying from £66 to £98 per month, she has three pensions which include state pension of around £470 per month and two private at around £670. Her tax code 246Y, does this seem right amount for her.

J - Sunday, February 27th, 2011

Do a bit of freelance admin, which takes me 2000 thousand over personal limit. Probably won’t be for much longer do I need to declare

lynn grange - Sunday, March 13th, 2011

I am 57 years old, I work 16 hours per week, and i wonder how much i can earn before being taxed.my 4 weekly wage is £379.

TaxFix - Monday, March 14th, 2011

lynn grange: During the 2010/2011 tax year you can earn £6,475 before you need to pay any tax. The new tax year starts on the 6th April, and then you will be able to earn £7,475

lilian parker - Sunday, March 20th, 2011

please can you tell me, is state pension included in income tax allowance for married women? i am age 64 and when my husband reaches 65 in may my total state and private pension make £7,044 per annum

Max - Wednesday, April 6th, 2011

In the Tax year 2010-2011 I earned £880 from my job. I recieved £4200 from the rental income of a property and I also recieved £2844 employment & support allowance. Will I have any income tax to pay?

Anonymous - Wednesday, April 13th, 2011

What can a 14 year old in the uk earn before tax

anon - Monday, April 18th, 2011

i am still in full time education, so can i claim national insurance tax back if i can prove i earned under the tax threshold for the year?

Chris F - Wednesday, April 20th, 2011

If I was to draw my pension at 56 years of age and still work part time how much could i earn before i start paying tax ? and would the tax come off my pension or my salary ?

lee - Thursday, April 28th, 2011

im self employed and ive earned £7.888.74. in 1 year do i need to pay tax on this ammount?

brian gow - Wednesday, May 11th, 2011

iv been on incapacity since 2008 i recieve a small pension of 1100 per year yet my tax code has changed to 229l can you tell me why this is

s dixon - Tuesday, May 17th, 2011

I have 2 part time jobs one earning £37.50 per week and the other on average £165 per week. Will i pay tax one or the other or am i under the personal allow?

pebbles - Saturday, July 2nd, 2011

my hours at work have been cut, this week i have earned 89 pounds do i need to pay income tax on that?

Riz - Tuesday, July 5th, 2011

How can I get the married mans tax allowens

paul - Sunday, July 10th, 2011

im self-employed and work 30 hours a week,i earn 180 pounds how much tax should i pay

s,davies - Monday, July 11th, 2011

i earn about 375 a month and am paying 20% each month is this right and if its not can i claim it back

s,davies - Monday, July 11th, 2011

is it right i am payin 20% each month on 375. is this right and can i claim it back

Alison - Friday, July 15th, 2011

What can a single mum with 2 kids earn before tax ?

Anon - Saturday, July 30th, 2011

If you get paid less than £144 do you get taxed?

Dave - Wednesday, August 3rd, 2011

I been on emergency tax since jan 24 20011 i only just got my p60 which i have sent to the inland revenue ! why has it took so long for my employer so long to sent to me..

G Walker - Saturday, August 6th, 2011

Does my 86 year old mother need to include disability allowance and attendance allowance in total when calculating if she needs to pay tax on her savings?

carole francis - Saturday, September 3rd, 2011

i am trying to work out how many hours i can work as i am a pensioner . PLEASE can you help me

barbara-ann hills - Thursday, September 8th, 2011

does my tax allowance start at my 65th birthday or april 1912

chris o'reilly - Sunday, September 11th, 2011

i have recently become a pensioner please can you tell me how much i can earn before my tax goes into a diff tax brkt.thank you

Daniel  - Monday, October 10th, 2011

How much can I earn without paying tax it’s my first job I’m earning £275

anonymous - Wednesday, October 19th, 2011

how much can i earn before paying tax my tax code is 647L

lewis19 10 11 - Wednesday, October 19th, 2011

how much can i earn before paying ta my tax code is 647L

carole green - Wednesday, November 16th, 2011

i am 66years old and receive 62pounds a week pension i get 43pounds a month from savings which is taxed by the the building society my husband want to invest money in my name as i am a non tax payer how much monthly interest can i receive before i pay tax.
Carole.

joanna - Monday, November 21st, 2011

im going to register has self employed and will be earning £120.00 a week will i pay tax on this?

Annie  - Thursday, February 2nd, 2012

I earn between 90 and 180 pounds per month as a freelance writer, and it varies every month. I imagine that I don’t have to pay tax on this but will it affect my child tax credit?

Jacqueline Harrison - Friday, February 3rd, 2012

I am resident in Spain,i have my state pension
paid here,i had a profit of £1620.00 on a rental
property in the UK. What is my personable taxable allowance
in the UK??I declared my State Pension and Rental
income on my Tax Return.
Yours Sincerley
J Harrison(Mrs)

pete b - Tuesday, February 7th, 2012

I am a 77 yr old male with my personal allowance and married mans allowance would i pay tax on 240 pound per week

Margaret Duncum - Saturday, February 25th, 2012

I am 65 on May 18th,2012.Am i “64″ for tax purposes till 2013?

HANNAH - Monday, March 19th, 2012

Hi i have two jobs but earn less than 6,475 for both in a year should i be paying any tax

Jane Butler - Thursday, March 22nd, 2012

I reach 65 on April 10th 2012.
Do I get the higher personal allowance for the 65-74 age group in 2012-2013 or must I wait until the next tax year?

Clare - Saturday, April 7th, 2012

I earn £3500 per year as an employee. I also earn about £2000 per year extra doing folders but I haven’t registered as self employed to do this. Due to a change in circumstances I now need to start claiming child tax credits, will I need to register as self employed now?

les  - Friday, April 20th, 2012

I receive a works pension of £5677 pa and will be 65 on March 20th 2013 – i have no other income. I have been given a tax code of 810L. Should this be 1050L as I am 65 before April 2013 ?. Many thanks .

kevin Beckett - Sunday, May 27th, 2012

im 62 years old i dont work. but i receive 2 pensions one for 120 pounds a month.then one for 155 pounds a month total 3.312 for the year.im married .my wife dont get any thing cos she is not from the uk.the personal allowance they gave me is 6475 a year so i can not understand why im being taxed on 3312 when my allowance is 6474?can you please help me understand this?

Lea - Friday, June 8th, 2012

had 2 jobs and thr main job was been taxed and on the second jod earning only 800 sterling pounds how much is the tax on the second job

Sarah - Tuesday, June 12th, 2012

I’m 20 and make £165 a week and get it paid monthly how much should I get taxed for 3 weeks worth?

kas - Thursday, July 19th, 2012

I am a self employed childminder, how much can i earn before tax? 2012

Matthew - Tuesday, October 2nd, 2012

I have recently become a self employed subcontracted security guard working events ect, I have been told by many people my 1st £8000 is tax free, is this true and how do I find out? I have been told to find out my tax code? I don’t know what this is or how to find out what this is?

Anonymous - Thursday, October 18th, 2012

I Am 18 Years Old And I Am Being Paid £5.40 An Hour, Is This The Right Amount Of Pay I Should Be Getting For My Age??

Anon - Monday, December 10th, 2012

I only earn 28 pounds a month for a leaflet round, how should I declare this if I need to declare it at all?

karen stanley - Thursday, March 7th, 2013

my tax code is 944L but split over 2 jobs 1 is 581L and i earn £4752 and the other is 362T and i earn £4222 will i pay tax on this job even though added togeather they do not equal my full personal allowance

Andrew - Thursday, March 14th, 2013

if I am a child and earn £100 pa or 100k pa do I get taxed as I am a minor ?

Andrew - Thursday, March 14th, 2013

How old will I have to be to start paying tax

Andrew Cooper - Thursday, March 14th, 2013

at what age do I start paying tax

TaxFix - Tuesday, March 19th, 2013

There is no age when you start paying tax, it is determined on your income.

TaxFix - Tuesday, March 19th, 2013

Andrew: There is no different tax rate for minors.

Barry - Tuesday, March 26th, 2013

I am returning to UK as a pensioner; wife still working and will have income of 12480 pa what will be her tax liability? My only income will be pension from Australia and UK.

g.sims - Thursday, April 4th, 2013

aged 73 how much can i earn before paying tax

Ricky - Friday, April 26th, 2013

Hi im 21 and working full time i earned 3130 pounds last tax year as i was an apprentice before changing jobs, ive been taxed on this amount but its below what i should earn before being taxed, should i be able to claim this back?

TaxFix - Thursday, May 2nd, 2013

Ricky: If you earned £3130 during the tax year you will be able to claim back all of the tax that you paid as you earned below the tax free allowance.

j bickerton - Saturday, May 18th, 2013

ive just retired at 55 and I get a pension of 9,515 a yesr will I have to pay tax on on my penisin

TaxFix - Friday, May 24th, 2013

j bickerton: Almost all income is taxed. However everyone has a tax free allowance, currently £9,449, so if that is your only income you won’t be taxed very much.

I earn £8000 a year do I have to pay tax - Tuesday, May 28th, 2013

I do earn £8000 a year do I have to pay tax becos just got my p60 and it saids no tax deduction but I have been paying tax every month

Seb - Monday, June 10th, 2013

Right, last year I worked two jobs, I was getting taxed 20% on one of them however I didn’t earn over £8000 a year (upto April 2013) can I claim the tax I was paying back?

TaxFix - Friday, June 28th, 2013

Seb: Yes you can claim it all back as your earned below the tax free allowance. You can apply for your tax rebate here: http://TaxFix.co.uk/claim

TaxFix - Friday, June 28th, 2013

If you earn £8000 during the tax year and have been paying tax. You can claim it all back. It sounds like there might be a discrepancy between your P60 and your wages though and you should ask your employer to correct it if it is wrong..

Ann Pratten - Friday, July 26th, 2013

I am 77 years old and have my normal pension plus
widows pension and a few small ones (About £1000 a month), how much can I earn extra before I have to declare it please.