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How much can you earn before paying tax in 2011?

Each year, almost everyone in the UK is entitled to earn a certain amount of money before you start paying tax.  This is called your Personal Allowance.

The amount generally changes every year and so here is our guide to how much you can earn before paying tax in 2011.

Personal Allowance

The amount of your personal allowance depends on your age and your total income in the tax year (including pensions, interest, rental income etc).

If you are under the age of 65 and you earn less than £100,000 per year, the Personal Allowance is £7,475.  This means that you can earn up to this amount before you start to pay tax.

If you are aged between 65 and 74 the Personal Allowance is £9,940 and if you are 75 or over it is £10,090.  If you are over 65 and earn £24,000 or more your Personal Allowance will be reduced by £1 for every £2 you earn over £24,000.

If you already pay tax through your job or pension, or if you complete a Self Assessment tax return, you should receive a Personal Allowance automatically.

Most people in the UK are entitled to the full Personal Allowance.  However, if you have underpaid tax in previous tax years or you have other jobs, income or benefits to take into account your Personal Allowance may be reduced to take these into account.

Blind Persons Allowance

Blind Persons Allowance is available to you if you are certified blind and are on a local authority register of blind persons.  The allowance for the 2011/12 tax year is £1,980 and this is in addition to any Personal Allowance you receive.

Married Couples Allowance

You can claim Married Couple’s Allowance if you’re married or in a civil partnership, you’re a taxpayer and you or your spouse or civil partner were born before 6 April 1935.

In the 2011/12 tax year, the minimum amount is £2,800 and the maximum amount of Married Couple’s Allowance is £7,295.  You receive 10 per cent of the allowance amount – which means your tax saving is at least £280 and up to £729.50. The actual amount depends on your income.

Lesley Smyth - Tuesday, August 16th, 2011

I earn a flat £125 per week. Should I be paying any tax?

Tax Fix - Tuesday, August 16th, 2011

No. Unless you have any other income then you shouldn’t be paying tax.

If you earn £125 per week that is £6,500 per year. Assuming you are eligible for the full Personal Allowance you can earn £7,475 before you pay tax.

christy Nadin  - Friday, August 19th, 2011

I married to my english husband in 2008 and i am holding ILR VISA and I now plan to back to my home country in malaysia after 3years working in UK.My husband will follow me next year.My question is can I and my husband claim my tax refund.

stevgillamos - Thursday, August 25th, 2011

Does ‘personal allowance’ i.e. £7475 apply to renting out my house e.g. my partner and I wish to rent out our house in Greater London and move to Midlands to rent another for a year or possibly two. We are joint owners of our property (I’m 62 she’s 54) and want to stop work and live on both proceeds from our London rent plus savings. The potential rent from our house will be rougly £12,000 pa i.e. less than the personal allowance. Will we still have to pay tax?

dan - Friday, September 9th, 2011

i earned nearly 8000 ponuds last year, and i was deducted 50 pounds per week that i worked, (im not sure what was tax or NI) should i be intitled to a rebate?
thanks

Garth Banks - Saturday, September 17th, 2011

I am over 75. Is it correct that if my total Income is 30,000 then I pay more tax that if I was under 65 due to the restriction of personal allowance on income above 24,000? ie my personal allowance of 10090 is reduced by 3000 to 7090.

Brian Roberts - Monday, October 31st, 2011

Am I going to pay tax at 52% on income over £50k?
For tax I mean income tax + National Insurance.
I am 57 years old – I will be taking early retirement with a pension of circa £27.5k.
I have savings income of circa £15k.
So in total my income – pension + interest is circa the maximum of £42,475 taxed at exempt/basic income tax rate – NI does not apply.
If I get a part time job under schedule E – all the additional income will be taxed at 40% higher rate tax. I am not clear on how NI works – do I still get to earn circa £7.5k with no NI and then anything over that (for the next 35k)gets charged at 12% NI rate. This means I am paying tax over circa £50k income (pension + interest + part time job) at 52% (income tax + NI) – have I got this assumption right?
Thanks

Indiana - Sunday, November 20th, 2011

I am out of work at mo.
How much can I earn before I have to pay tax?

taxed to much - Friday, December 9th, 2011

Sam here Im 20 and I earned £5616 Gross ? they have been taxing me at %20 do I pay tax I thought I had to earn £6,435 before I pay tax what do i need to do thanks Sam

John Coulson - Saturday, December 10th, 2011

Hello I have had a bad year with work and I have only picked up £4.055.64 from 01/01/2011-10/12/2011.
so a weekly pay of £67.59 and I have been taxed £810.80 and that is just tax not N.I. The N.I was £147.35 , so my question is how do I get a tax rebate and who should I talk to.
Thank you.

Will - Friday, December 23rd, 2011

I have just done a one off job earned about £178 do I pay tax and do I have to fill in a p46 I am 18

Dennis P. Niess - Saturday, January 21st, 2012

I am 68 years old and I earned $1,089.00 from the state of WI for unemployment in 2011. Do I have to file this year?

Dennis P. Niess - Saturday, January 21st, 2012

If I earned $1,089.00 in 2011 from Unemployment compensation in the state of WI do I need to file this year- I am 68 years old and no other income except for Social Security?

paul - Tuesday, January 24th, 2012

how much can i earn if i have a fall time job

caroline  - Saturday, January 28th, 2012

Hi could you tell me how much i can earn a month before i have to pay tax please.

m lisle - Thursday, February 2nd, 2012

how much can i earn before paying tax i am a female aged over 65

paul smith - Thursday, February 9th, 2012

how much can i earn before pay 40% tax

Tony - Saturday, February 11th, 2012

I earn £20’000 on one job and £4’444 on the second job both with differnet employees. Does this mean both salaries are added together then taxed or separatley? I understand I don’t pay tax under £7000?

Regards

lynda - Saturday, February 11th, 2012

I’ve never had a tax rebate and changed jobs three times during my working life and had my NI frozen what does this mean exactly?

lyndon - Friday, February 17th, 2012

I have been unemployed for 12 months and I want to know when i start work again will I PAY tax straight away if I have been on JSA.

jeanette - Monday, March 5th, 2012

I retired in dec 2010 aged 55. i recieve a pension of £265 a month after tax. should i pay tax on my savings

Mrs Brown - Thursday, March 15th, 2012

I retierd Sep6 2011 I get £137-78 state pension
I work 5hrs a week when needed £34 gross and my Tax code is K67 is this right.

Alex - Wednesday, March 21st, 2012

I earn £824 per month how much tax should I pay?

gemma - Thursday, March 22nd, 2012

If I earn less than taxable allowance do I pay national insurance and if so how much ?

helen  - Friday, March 30th, 2012

how much tax and national insurance should i be paying if i earn 6,500 a year ?

laura ellis - Friday, March 30th, 2012

if ive earned £5261.21 and i have been taxed £1052.20 should i get a tax rebate

Gerald King - Thursday, April 5th, 2012

I will 75 years old on November 29 this year, and have £500 in the bank,what will my tax allowance be, Plesse

Samantha - Friday, May 18th, 2012

Hi i earn £204 pound a week should i be paying tax

Beverley - Friday, May 25th, 2012

I am self employed and earn £80 per week what would my unique tax code be?

Beverley - Friday, May 25th, 2012

I am self employed and earn £80 a week what is my unique tax code number ?

Penelope - Tuesday, May 29th, 2012

I was a self employed cleaner and retired june 2011 through ill health. I earned so little that I think I might not have to submit a tax return. How much can I earn without submitting a tax return?

sonia sellars - Saturday, June 16th, 2012

My husband earns £5.500.00 per month gross he pays about £1,500.00 in income tax. I work part time and earn £900 gross per month. Would my husband pay less tax if i didnt work
Thankyou

Miss Johnson - Tuesday, July 31st, 2012

i have two jobs which total my income to around £600 a month, should i be taxed?

Haych - Wednesday, September 12th, 2012

I’m 18 and earning under 7000 a year should I still be getting taxed?

kevin parker - Monday, September 17th, 2012

im taking voluntary redundancy at the age of 54, and my pension is £6,700 a year will i have to pay tax on the £6,700 !!!

janis - Saturday, January 5th, 2013

is state pension added to what you earn when tax is calculated?

Karl - Friday, January 11th, 2013

My wife earns £85 per. I earn £20k per year and pay tax does my wife need to pay tax on her earnings