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How Much Can You Earn Without Paying Taxes 2012?

If you’re looking for an answer to the question ‘how much can you earn without paying taxes in 2012?’ then you’ve come to the right place.  In our guide, we look at the changes to your Personal Allowance in 2012/13.

We also look at changes to other allowances and examine how much tax-free income you’ll be able to earn in 2012/13.  Keep reading to learn more.

Your tax free income in 2012/13

Your Personal Allowance is the amount of income you are allowed to earn each year before you start to pay tax.  The vast majority of taxpayers are eligible for the basic Personal Allowance.  The chart below shows the basic Personal Allowance in the tax year 2011/12, the 2012/13 tax year and the increase between the two years:

Age 2011/12 Change 2012/13
Up to age 65 £7,475 +£630 £8,105
Age 65-74 £9,940 +£560 £10,500
Age 75 and over £10,090 +£570 £10,660

 

This means that if you’re under the age of 65 and you’re eligible for the full Personal Allowance in 2012/13, you can earn £8,105 of income before you’ll start to pay tax.

Other allowances in 2012/13

If you are married and living together, were married before 5 December 2005 and at least one spouse was born before 6 April 1935, the husband can claim Married Couple’s Allowance.

If you are married or in a civil partnership and living together and at least one spouse or partner was born before 6 April 1935, the person with the higher income can claim Married Couple’s Allowance.

HMRC reduce your tax bill by ten per cent of the Married Couple’s Allowance to which you’re entitled. The actual amount depends on the relevant person’s income.

  2011/12 Change 2012/13
Allowance £7,295 +£410 £7,405
Minimum amount £2,800 +£160 £2,960

 

If you’re certified blind and are on a local authority register of blind persons, or if you live in Scotland or Northern Ireland and you are unable to perform any work for which eyesight is essential, you can claim Blind Person’s Allowance.

Blind Person’s Allowance is rising by £120 in 2012/13 from £1,980 to £2,100.

What tax you do pay on the rest of your income

If you earn less than your allowances then you’ll generally pay no tax on your income.  However, if you earn more than your total allowances then you’ll pay tax on your income above this amount at the following levels:

Tax band 2011/12 2012/13
20% – basic rate £0 -£35,000 £0 – £34,370
40% – higher rate £35,001 to £150,000 £34,371 to £150,000
50% – additional rate Over £150,000 Over £150,000

 

You will notice that the point at which you start to pay the higher rate of Income Tax will decrease by £630 to £34,370 in 2012/13.  This is to balance the £630 increase in the personal allowance for people aged under 65.

Letitia D - Monday, March 26th, 2012

Are these the figures that were announced in the Budget in March 2012?

Tax Fix - Monday, March 26th, 2012

Letitia – that’s a great question.

No. These are the new tax allowances that come into effect on 6 April 2012 (they were announced last year).

The changes announced in the March 2012 Budget come into effect in April 2013.

june wiggan - Monday, April 9th, 2012

My son is seventeen , and is applying for a job which is offering 15.000 what will be the net pay on this amount .
Regstds June wiggan

Kirsty Stewart - Monday, April 23rd, 2012

hi.I have two jobs and get taxed on my main job. How would I go about getting a tax rebate

w roach - Monday, April 23rd, 2012

how much a house hold qualified for and still allowesd tax credit and child benefit

Brian - Tuesday, May 15th, 2012

I’m a UK expat landlord. Last year I had to replace the washing machine in the house. Can I claim this as an expense? And can I claim the 10% wear and tear as well?

James - Saturday, June 2nd, 2012

I am changing my status of Work. Before i am working as a Employee and from June i am going to work as a Self-emploed so am i entitled for tax rebates for 2 Months April’12 & May’12.

keith roberts - Monday, July 2nd, 2012

how mutch tax will i pay on 9,216

Dan - Thursday, August 16th, 2012

I am 16 and have been working with a contractor at the london 2012 olympic games, i am assuming this classes as part time work and get paid a casual rate of 8.30 per hour, am i able to claim tax back?

Dawn - Saturday, August 18th, 2012

I hve just been offered a job in a school kitchen total pay is £9352.56 per annum how much would i be taxed on that each month? i have divided it by 52 weeks which is £179.85 a week and then times by 4 comes to £710.42.
Basically what i am asking is how much tax will be taken off and if you know how much insurance also.
Yours hopefully to a reply
Dawn

L. - Monday, September 3rd, 2012

I am Ltd. co and have been offered a staff job at 35k a year. what are the implications of being staff and having a Ltd. Co.? do I keep the Limited Co. open? what would I get in my hand after deductions per month on a staff salary at 35K year?

KWD - Saturday, September 15th, 2012

Do you have to inform the tax office of any earnings thats within
your personal allowance.?

Emily - Friday, September 21st, 2012

How much would I get taxed on 10,500 at 18 years old?

Emily - Friday, September 21st, 2012

How much would I taxed on 10500 at 18 years old?

donald dowds - Saturday, September 22nd, 2012

i am 67 and retired i have 3 pensions that total £10,511.how much tax should i be paying.

Mr e mckay - Saturday, September 22nd, 2012

I have just started work after a year of unemployment and wanted to know what I need to do to claim my personal allowance on tax of £8,105 or will I just automatically pay no tax

bernadette - Thursday, September 27th, 2012

presently working 16 hrs wage £360 per month dont pay no tax or national ins. Takeing on another job and leaving this one.,New Wage per week £182, how much national insurance and tax per week to pay on this..single age 55. jobs 30 hrs so MAY get working tax? not paying national insurance at moment which is worrying!

Tini - Wednesday, October 3rd, 2012

I gave up my job back in June due to personal reasons and I am thinking about part time work how much can I earn before I pay tax and can i claim any back

J Walters - Thursday, October 4th, 2012

How much benefit am I allowed before paying tax

mr france - Saturday, October 6th, 2012

How much per week can i earn befor bein taxed ?

Belle - Sunday, October 7th, 2012

How much have Self-employed can earn before paying tax?

Dawn Denton - Monday, October 8th, 2012

My daughter who is 19 has started her 1st job recently but they are taxing her straight away. it states clearly that you are allowed to earn £8,105 before youl start to pay tax so i dont understand then why is she paying it as she hasnt earnt no where near that amount ?

caroline - Saturday, October 20th, 2012

i have been suggested to do training as a learning support assistant but iam on chiltaxcredit and topped up by incomesupport and receive full housing benefit i am a dinnerlady at presentwith a low income and have three teenage sons, what would i have to earn before it effects the benefits?

Ian Smith - Thursday, October 25th, 2012

I am retired at 57 yrs of age with a monthly pension of £750. How much can I earn with weekend work over the summer before being eligible for tax

Jeff - Tuesday, October 30th, 2012

@Dawn Denton – If I’m not mistaken, your daughter will be able to claim that money back when tax season arrives, if she doesn’t go over that amount.

I think that’s how it works anyone correct me if I’m wrong.

Her mother - Tuesday, October 30th, 2012

anyone who has had moved house several times like my daughter and paid emergengy tax code while working for agencies etc…. may be due a tax rebate she has just had £4,000 rebate check it out at local tax office use their phone to find out

Evie - Monday, November 5th, 2012

i am 18 and have never worked before the job i am in. i am paying full tax but i got told that i dont have to pay tax until ive earned a certain ammount but i dont no what to do?

lisa  - Thursday, November 8th, 2012

if my son gets a job and earns less than 150.00 weekly will he need to declare this to the tax man or just pay no tax

lisa  - Thursday, November 8th, 2012

if my son gets a job and earns less than 150.00 weekly will he need to declare this to the tax man or just pay no tax

Cat - Friday, November 9th, 2012

Hi, my husband is the current provider for our family but I am thinking of buying & running my own business. Will my tax on the business be separate to my husbands or does it go under our joint income?
Thanks
Cat

sophie - Monday, November 12th, 2012

Hi i am a student, over the Christmas period i earn a lot more than any other month. every other month i earn about £400. how much can i earn before i get taxed. also how much tax will it be.

Laura D - Monday, November 26th, 2012

I’m a part-time waitress and a part time sales assistant. I am not on a yearly salary and what I earn relies on how many hours I do and while I only had the waitress job I didn’t pay tax. Now with the second job I do have to pay tax but how can I know how much of my wage should be getting taxed and shouldn’t?
I know that I don’t earn any more than £5000 on my first job so I should have some personal allowance left over to apply to my new job even though I can’t know how much I earn in a year before the end of it?
Will this have to work as a rebate thing in April?
So confused!

Dave w - Tuesday, November 27th, 2012

Do you need to pay national insurance if you earn under the personal allowence

jeff c clark - Saturday, December 8th, 2012

if i help take care of someone at home and they pay me cash.and they turn it in on taxes what do i do.

DAVE W - Tuesday, December 11th, 2012

I have a hobby that brings in some money. I cannot work due to illness. Do I have to contact the tax office at any point? My hobby brings in way less than the tax threshold.

Sean  - Thursday, January 3rd, 2013

You can earn approximately 155.86 a week or about 620 a month before being taxed this is subjected to to 8105 allowed before being taxed if you do get taxed ensure ur employer has either your p45 or request a p46 form to fill out and any tax u have paid u will recieve back in April as a tax rebate.

Susan Burke - Friday, January 4th, 2013

For Dawn Denton
You daughter should have been asked to complete a form P46 by her new employer, this will put her on the corrected tax code asap, she will then automatically be refunded any tax owed and not have to wait until the next tax year.
Hope this helps

darren storey  - Friday, January 4th, 2013

how much i can earn a week before i have to pay tax

Alavert - Tuesday, January 8th, 2013

How much is the current non taxable income as at January 2013

karen - Friday, January 18th, 2013

In the past year i have earned approximatly £250 babysitting. It’s extra income on top of my main job. Do i pay tax on this?

Stacy - Friday, January 18th, 2013

My husband a few side jobs do we have to pay taxes on this?

paul - Friday, January 18th, 2013

so i can earn upto£42.475 before paying 40%

Steve - Saturday, January 19th, 2013

Hi I m self employed and earnt £4000taxed money and £3500 cash money last year , how much tax would I pay, taking off expenses ?

phil - Monday, January 21st, 2013

if i was self employed how much could i earn before i pay tax

TaxFix - Tuesday, January 22nd, 2013

phil: It will be the amount of the tax free allowance which is £8,105 for 2012/13 and £9,440 for 2013/14

jo ann mitchell - Wednesday, January 30th, 2013

how much money do i have to make in order to be exempted from taxes

john - Thursday, January 31st, 2013

i get about 200 pounds per year in dividends and have never declared them what should i do im due to retire soon. thanks

christine payne - Thursday, January 31st, 2013

If I earn £6.35 an hour for 16 hours a week and get housing benefit and child benefit how much tax should I be paying

Suzanne mellor - Sunday, February 3rd, 2013

I want to take my nhs pension next year and be a self employed celebrant. I will be 58 yrs old as I have mental health officer status. How much can I earn before paying tax and will I need to continue paying national insurance for my old age pension at 65?
Many thanks

grant  - Friday, February 8th, 2013

i have recently just started a new job and have never been taxed before will i get taxed straight away or not ?

TaxFix - Friday, February 8th, 2013

grant: Usually you will be taxed as soon as you start earning.

TaxFix - Saturday, February 9th, 2013

Suzanne mellor: The tax free allowance for the 2013/2014 tax year will be £9,440

TaxFix - Saturday, February 9th, 2013

Rachael chedgzoy: If you earned below £5,000 you will be able to claim all of your tax back. At the end of the tax year your employer should give you a P60. when you have your P60 you can make your claim here.

TaxFix - Saturday, February 9th, 2013

dav: If you leave the UK you can claim a tax refund. The amount of your tax refund will depend on how much you earned and how much you paid in tax. When you finish working you should be given a P45. When you have your P45 you can make your claim here.

TaxFix - Saturday, February 9th, 2013

jo ann mitchell: The tax free allowance for the 2012/2013 tax year is £8,105. For the 2013/2014 tax year the allowance is £9,400

TaxFix - Sunday, February 10th, 2013

Adam: Claiming a tax refund doesn’t not affect your eligibility to come back to the UK. If you work in the same tax year as your claim, there may be an underpayment of tax.

Jessica McGinty - Friday, February 22nd, 2013

Hi I am a student (19) and I receive a student loan. I began working part time in October at the minimum wage rate. I was wondering how much money students are able to earn before paying tax? The tax is deducted from my wages each month, would I be entitled to a rebate?
Thank you
Jessica

TaxFix - Monday, February 25th, 2013

Jessica McGinty: As of 6th April the tax code will change to 944L which means that you can earn £9,449 before paying any tax.

katie wilson smith - Saturday, March 2nd, 2013

I have started my first job four months ago after leaving university. I have been taxed from the word go. My job is commission based and this month was taxed over five hundred pounds. I though I was able to earn around seven thousand pounds before I would be taxed? Is this correct. Thank you for your help.

peter - Wednesday, March 20th, 2013

i have 2 private pensions they pay me 3844 per annum and 5000 per annum from incapacity am i liable to pay tax

Cari - Thursday, March 28th, 2013

I am a landlord, my annual rental income is £4,800 and i do not make any profit after mortgage repayments, insurances and gas safety check are paid out. Do i have to file self assessment tax reports?

alan atkin - Sunday, March 31st, 2013

can i claim unemployment bennefit if i did not pay national insurance because i earned less than 120 pounds per week

Trish - Tuesday, April 16th, 2013

I have a normal night job and pay tax on this.
If I seek to raise approximately £1000 to fund a trip and offer my skills as a decorator to friends to I have to pay tax on this also.

Simon B - Tuesday, April 30th, 2013

Hi
I have earned just under £12000 last year (12/13) and paid tax all the way from the first tax week to the last. Am I eligible for a refund?

TaxFix - Thursday, May 2nd, 2013

Simon B: It depends on how much you paid in tax. If you know this amount you can input it and your income in our tax calculator here.

d dawson - Friday, May 3rd, 2013

how much tax should i pay on 8000 per anumm

TaxFix - Saturday, May 4th, 2013

d dawson: Nothing, as you’ll have earned below the tax free allowance. If you have paid any income tax you can claim it back.

raymond - Thursday, May 9th, 2013

how much tax will i pay on £9.500

G Westley - Monday, May 27th, 2013

If a person is claiming disability higher rate due to a very bad disability, How much could they earn by selling books?

Gordy - Tuesday, June 4th, 2013

I Don`t understand why if you work hard and can earn £150,000 a year you have to pay 50% of that in tax leaving you with the wage of £75,000 when you still get the same treatment from the government than those on a minimum wage paying 20% tax..if you worked hard for it some times working 16 hours a day 6 days a week to make ends meet i feel you shouldn`t have to pay so much tax in the long run your killing yourself to line the governments pockets

Dee - Friday, June 21st, 2013

I have calculated earnings of £8,640.50 but haven’t calculated costs or expenses lighting gas water etc desks phone internet etc etc does that mean I won’t be liable for Tax payment?

TaxFix - Friday, June 28th, 2013

Dee: If you earned £8,640, then you will be earning under the tax free allowance and there will be no tax to pay anyway.

sue - Tuesday, July 2nd, 2013

Hi i was wondering if i was to start a job how much can i earn before i pay tax and national insurance??

TaxFix - Tuesday, July 23rd, 2013

sue: The tax free allowance is currently 9,449 pounds. This will be allocated evenly throughout the tax year though so that you won’t get it all at once.