What is the current personal allowance threshold?

What is the current personal allowance threshold?

• A. £12,000
• B. £12,570
• C. £12,700
• D. £13,000

Answer: (B)

The personal allowance is the amount of income you can earn in a tax year before any income tax is charged. It is currently set at £12,570 per year. This means earnings up to £12,570 are tax-free, and any income above that is taxed at the applicable rates. The allowance is gradually reduced for high earners: for every £2 of income above £100,000, £1 of the personal allowance is lost, until it reaches zero at £125,140. So £12,570 best matches the current threshold.

The personal allowance is the amount of income you can earn in a tax year before any income tax is charged. It is currently set at £12,570 per year. This means earnings up to £12,570 are tax-free, and any income above that is taxed at the applicable rates. The allowance is gradually reduced for high earners: for every £2 of income above £100,000, £1 of the personal allowance is lost, until it reaches zero at £125,140. So £12,570 best matches the current threshold.