What’s your 2023-24 personal allowance?

The tax free Personal Allowance for the 2023-2024 tax year is £12,570.

It is the same as the 2022/2023 tax year with the government currently expecting to keep the same personal allowance of £12,570 until April 2026.

The £12570 personal allowance means you don’t need to pay income tax on earnings up to the £12,570 threshold.

All income over the threshold is taxed at the income tax rates applicable to your level of income under PAYE (Pay as you Earn).

The 2023/2024 tax year starts on the 6th April 2023 and stops on the 5th April 2024.

What are the 2023/2024 income tax bands?

The income tax bands for the 2023/2024 tax year are being kept the same as the previous tax year before and again are currently meant to be in place until 2026.

After the £12570 threshold you will pay income tax at the following rates:

  • Basic rate of 20% on earnings between £12,571 and £50,270.
  • Higher Rate of 40% on earnings between £50,271 and £125,139.
  • Additional Rate of 45% on earnings from £125,140.

The additional rate tax threshold has been reduced meaning taxpayers earning over £125,139 will start paying tax at 45% sooner than the previous tax year.

Scotland has different rates of tax and bands. For 2023/2024, these are:

  • Starter Rate of 19% on income between £12,571 and £14,732
  • Basic Rate of 20% on income between £14,733 and £25,688
  • Intermediate Rate of 21% on income between £25,689 and £43,662
  • Higher Rate of 41% on income between £43,663 and £150,000
  • Top Rate of 46% on income over £150,000

The tax bands may change with the governments stance on tax being unpredictable in recent times.

What is the 2023/2024 tax code?

The standard tax code for the 2023/2024 tax year is 1250L due to the fact the tax free personal allowance is £12,500. Your tax code is important because your code tells your income source how much personal allowance you should be given and how much income tax to deduct.

Checking your 2023/2024 tax code

If your tax code for the 2023/2024 tax year isn’t 1250L and you think your code might not be correct you should ask HMRC to check your tax code for accuracy.

Your personal allowance won’t be correct if your tax code is wrong which will mean you will underpay or overpay income tax.

When you find your tax code on a recent pay slip or through your personal tax account you can use our tax code guide to learn more about tax codes and what to do if yours might be wrong.

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