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In short
- £12,570 of income each year is tax free, frozen until April 2031.
- It tapers away by £1 for every £2 over £100,000 and is gone at £125,140.
- Married or in a civil partnership with one low earner? Up to £1,260 can be transferred.
- Earn under it and there is no tax to refund, however much you spent on work.
How it is applied
Through your tax code, spread evenly across the year. 1257L gives £1,047.50 a month tax free. Part-year work or a second job can leave some unused, which is the most common cause of a PAYE overpayment.
The taper
Between £100,000 and £125,140 the allowance falls by £1 for every £2 earned, an effective 60% marginal rate. Pension contributions reduce adjusted income and restore some of it.
Marriage Allowance
A non-taxpaying partner can transfer 10% of their allowance, £1,260, saving the other up to £252 a year, backdated 4 years. Marriage Allowance explained.
Why it matters for expenses
Relief is only worth something if you paid tax. A part-time cleaner earning £11,000 paid none, so a uniform claim refunds nothing. At £13,000 the refund is capped at the £86 of tax paid.
Questions
Does it apply per job?
No, once per person per year. HMRC allocates it to one job unless you ask for a split.
Blind Person's Allowance?
An extra £3,250 on top, and transferable to a spouse.
This guide is general information, not advice about your circumstances. Figures use HMRC rates for the 2026 to 2027 tax year. We are a paid tax agent and not HMRC.
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