*Update* – this was increased in the 2016 Budget to £11,500
The UK personal allowance is the amount that you are allowed to earn before you are subject to tax. You can also add on to this the personal savings allowance and the dividend allowance that could be applicable to some of your earnings.
So if you are wondering what is the UK personal allowance for the tax year 2017/18 then the figure you are looking for is £11,200.
This is an increase of £200 on the personal allowance from 2016/17 – equivalent to 1.8%.
There were previously other lower figures announced for 2017/18 (which you can still find reference to on the HMRC website which can make it confusing), but when the personal allowance was increased to £11,000 for 2016/17 this was a jump higher than had previously been announced and so figures beyond 2017 also needed to be amended.
Of course there is a small chance that this could be changed in the 2016 budget but it looks unlikely at this stage.
Wry is my tax code 147l
Hi Gary, there could be a number of reasons that your tax code is 147L – that code indicates that you can only earn £1,470 before paying tax on the earnings where the tax code is applied. As the letter ‘L’ is a standard code for the full personal allowance (£11,500) then this may mean for example that you have other earnings elsewhere, or perhaps that you are paying back underpaid tax from the previous tax year, or maybe you have other benefits from your job that are taxable. If you don’t think that any of these apply then you can ring the tax office on 0300 200 3300 to query your tax code.
Hi ,This is my tax code 1120T is it correct?
I can’t tell you whether it is correct but a tax code of 1120T means that you have a tax free allowance of £11,200 rather than the standard rate of £11,500. The code letter T means there has been some other calculation taken into account which would explain the slight difference. For example your earnings may be over £100,000 which would reduce your personal allowance on a sliding scale.
i have ot on my wage slip instead of a tax code and I have been taxed a lot more
Hi Lynne, check out this post about the 0T tax code.