Personal Allowances

Personal Allowances refer to the amount of income an individual can earn each tax year without paying income tax. It acts as a tax-free threshold, meaning earnings up to this limit are not taxed. The allowance can vary based on income level, age, and circumstances. Once your income exceeds this allowance, you start paying tax on the amount above it. Personal Allowances are designed to ensure that basic personal income remains tax-free, providing financial relief to individuals.