03/09/2026
£12,570 - It’s been the magic number for a while now.
The Personal Allowance is currently £12,570, and unlike many other things, it hasn’t been increasing with inflation as the government has extended the freeze on this until April 2031.
Normally the allowance would be reviewed and potentially increased over time. Keeping it frozen means that as wages and incomes rise, more people can gradually find themselves paying tax, even if their purchasing power hasn’t increased by the same amount.
It’s one of those changes that’s easy to overlook, but it can have a real impact on your tax bill.
So while April 2031 might feel a very long way away, it’s worth understanding how frozen tax thresholds can affect your finances over time. Because sometimes it’s not about your tax rate going up. It’s about the thresholds not moving.