Looking to increase your personal allowance and pay less income tax? The personal allowance is the amount you can earn each tax year before paying tax.
For the 2025/26 tax year, the standard personal allowance is £12,570.
Many people do not realise there are legitimate ways to increase your personal allowance beyond this amount, or for higher earners, reclaim personal allowance that has been reduced.
With the personal allowance frozen until at least 2028, more workers are being pulled into higher tax brackets through fiscal drag.
Understanding how to increase your personal allowance has never been more important for UK taxpayers looking to keep more of their earnings.
This guide explains how to increase your personal allowance through Blind Person’s Allowance, Marriage Allowance, and strategies for high earners affected by the personal allowance taper.
Whether you want to boost your tax-free income or restore lost personal allowance, these methods could save you hundreds of pounds each year.
Increase Personal Allowance: Key Takeaways
- The standard personal allowance is £12,570 for the 2025/26 tax year
- Blind Person’s Allowance adds £3,130 to your tax-free income
- Marriage Allowance can save couples up to £252 per year
- High earners lose £1 of personal allowance for every £2 earned over £100,000
- Pension contributions and Gift Aid donations can restore lost personal allowance
- The personal allowance is frozen until at least 2028
Understanding the Standard Personal Allowance
The personal allowance is the foundation of the UK income tax system. It represents the amount of income you can receive each tax year without paying any income tax.
For most people, this is automatically applied through the PAYE system, reflected in the tax code 1257L.
The “1257” represents the £12,570 allowance, and the “L” indicates you are entitled to the standard tax-free amount.
The standard personal allowance is not the maximum you could receive.
There are two additional allowances that can increase your tax-free income, and several strategies that can help high earners reclaim allowance they have lost.
Blind Person’s Allowance: An Extra £3,130 Tax-Free
If you are registered as blind or severely sight impaired, you could claim Blind Person’s Allowance (BPA). This is an additional tax-free amount added on top of your standard personal allowance.
For the 2025/26 tax year, Blind Person’s Allowance is worth £3,130. This brings your total tax-free income to £15,700 if you also receive the full standard personal allowance.
Who Can Claim Blind Person’s Allowance?
The rules differ depending on where you live in the UK:
- England and Wales: You must be registered as blind or severely sight impaired with your local authority, or have a certificate from an ophthalmologist confirming your sight impairment.
- Scotland and Northern Ireland: Your sight must be so poor that you cannot perform any work for which eyesight is essential.
You do not need to be completely without sight to qualify. Many people with partial sight are eligible.
How to Claim
You can claim Blind Person’s Allowance by contacting HMRC. If you are employed, HMRC will adjust your tax code to include the additional allowance.
For example, your tax code might change from 1257L to 1570L to reflect the combined personal allowance and BPA.
Transferring Unused Allowance
If your income is too low to use your full Blind Person’s Allowance, you can transfer the unused portion to your spouse or civil partner. This could reduce their tax bill instead.
For example, if you earn £8,000 per year and have both the personal allowance (£12,570) and Blind Person’s Allowance (£3,130), you have £15,700 of tax-free allowance but only £8,000 of income.
The unused £7,700 cannot be used by you, but up to £3,130 of BPA can be transferred to your partner.
Marriage Allowance: Share Your Personal Allowance
Marriage Allowance is not an additional allowance in the traditional sense. Instead, it allows you to transfer part of your unused personal allowance to your spouse or civil partner.
If you earn less than the personal allowance threshold (£12,570), you may be able to transfer £1,260 of your allowance to your partner.
This could reduce their tax bill by up to £252 per year.
How Marriage Allowance Works Example
The Marriage Allowance is designed for couples where:
- One partner earns less than £12,570
- The other partner is a basic rate taxpayer (earning between £12,571 and £50,270)
The lower earner gives up £1,260 of their personal allowance. This reduces their own tax-free amount from £12,570 to £11,310.
Since they earn below the personal allowance anyway, this has no practical effect on their tax.
The higher-earning partner receives the £1,260 as a tax credit, reducing their tax bill by 20% of £1,260, which equals £252.
Backdating Your Claim
You can backdate a Marriage Allowance claim by up to four tax years. This means if you have been eligible but not claiming, you could receive a lump sum of over £1,000.
Married Couple’s Allowance: For Those Born Before 6 April 1935
If you or your partner were born before 6 April 1935, you may qualify for Married Couple’s Allowance instead of Marriage Allowance. You cannot claim both.
Married Couple’s Allowance works differently. Rather than transferring personal allowance, it provides a tax reduction worth 10% of the allowance amount.
For the 2025/26 tax year:
- Maximum Married Couple’s Allowance: £11,270 (tax reduction of £1,127)
- Minimum Married Couple’s Allowance: £4,360 (tax reduction of £436)
The amount you receive depends on your income. The allowance is reduced by £1 for every £2 of income above £37,700, but never falls below the minimum.
The Personal Allowance Taper: What Happens Above £100,000
While the methods above can increase your tax-free income, high earners face the opposite problem.
Once your income exceeds £100,000, your personal allowance starts to disappear.
For every £2 you earn above £100,000, you lose £1 of your personal allowance. By the time your income reaches £125,140, your personal allowance is completely gone.
This creates an effective tax rate of 60% on income between £100,000 and £125,140. Here is why:
- You pay 40% income tax on this income
- Plus, you lose 50p of personal allowance for every £1 earned
- That lost allowance would have saved you 40% tax (20p)
- Total: 40% + 20% = 60% effective rate
According to HMRC, almost 725,000 workers fell into this 60% tax trap in 2025/26, up from around 300,000 in 2017/18.
Strategies to Restore Lost Personal Allowance
If your income is above £100,000, there are legitimate ways to reduce your adjusted net income and reclaim some or all of your personal allowance.
Pension Contributions
Pension contributions are one of the most effective ways to reduce your taxable income. When you contribute to a pension, the amount is deducted from your income for tax purposes.
For example, if you earn £120,000 and contribute £20,000 to your pension (gross), your adjusted net income falls to £100,000. This could:
- Restore your full £12,570 personal allowance
- Save you £5,028 in additional tax (40% of £12,570)
- Plus, you receive £8,000 in pension tax relief on the contribution itself
The combined tax benefit of making this pension contribution could be worth over £13,000.
You can contribute up to £60,000 per year to pensions and receive tax relief (or 100% of your earnings if lower).
You may also be able to carry forward unused allowances from the previous three tax years.
Salary Sacrifice
Salary sacrifice arrangements allow you to give up part of your salary in exchange for a non-cash benefit, typically an employer pension contribution.
Because the salary is sacrificed before tax and National Insurance are calculated, this reduces your taxable income more efficiently than personal pension contributions.
If your employer offers salary sacrifice for pensions, this can be particularly effective for reclaiming your personal allowance.
From April 2029, pension contributions through salary sacrifice above £2,000 are expected to attract National Insurance, reducing some of the benefit.
Gift Aid Donations
Charitable donations made through Gift Aid can also reduce your adjusted net income.
When you donate through Gift Aid, the charity claims back basic rate tax (20%), so a £100 donation costs you £100 but the charity receives £125.
As a higher rate taxpayer, you can claim the difference between your tax rate and basic rate through your tax return.
For personal allowance purposes, your adjusted net income is reduced by the gross value of your donation (£125 in this example).
If your income is £105,000, donating £5,000 to charity (gross value £6,250) would reduce your adjusted net income to £98,750.
This restores your full personal allowance and could save you thousands in tax.
You can also backdate Gift Aid donations to the previous tax year if you make the donation before filing your Self Assessment return.
Other Salary Sacrifice Benefits
Beyond pensions, some employers offer other benefits through salary sacrifice that can reduce your taxable income:
- Cycle to work schemes
- Electric vehicle leasing
- Additional annual leave
- Childcare vouchers (for those with existing entitlements)
Each of these reduces your gross salary, potentially bringing your income below key thresholds.
Common Mistakes That Cost You Money
Not Claiming What You Are Entitled To
Thousands of people fail to claim Blind Person’s Allowance or Marriage Allowance each year. If you qualify, these allowances are available by right, but you must actively claim them.
Ignoring the £100,000 Threshold
Many people receive a pay rise or bonus that pushes them just over £100,000 without realising the impact.
A £1,000 bonus at this level could cost you £600 in additional tax due to the personal allowance taper.
Planning ahead can help. If you know a bonus is coming, increasing your pension contribution beforehand could protect your personal allowance.
Failing to Check Your Tax Code
Your tax code should reflect all allowances you are entitled to. If you claim Blind Person’s Allowance or receive Marriage Allowance, check that your tax code has been updated correctly.
An incorrect tax code could mean you are overpaying tax throughout the year. You can check your tax code through your Personal Tax Account at gov.uk.
Not Backdating Claims
Both Marriage Allowance and Blind Person’s Allowance can be backdated. If you have been eligible but not claiming, you could be owed a refund for previous years.
How These Tax Allowances Work Together
In some cases, you can combine multiple strategies:
Example: Paul is registered blind and earns £8,000 per year. His wife Janet earns £35,000.
- Paul claims Blind Person’s Allowance (£3,130)
- Paul cannot use his BPA as his income is below his personal allowance
- Paul transfers his BPA to Janet, increasing her tax-free income by £3,130
- Paul also transfers £1,260 through Marriage Allowance, giving Janet a £252 tax credit
Result: Janet’s tax bill is reduced by both the transferred BPA (saving £626 at basic rate) and the Marriage Allowance credit (£252). Total household saving: £878 per year.
Note: You cannot claim both Marriage Allowance and Married Couple’s Allowance. If one partner was born before 6 April 1935, check which gives the better result for your circumstances.
Increase Personal Allowance FAQs
Can I increase my personal allowance if I earn over £125,140? If your income is above £125,140, your personal allowance is fully withdrawn. However, you can still make pension contributions or Gift Aid donations to reduce your adjusted net income. If you bring it below £125,140, you start to recover some personal allowance.
Does Marriage Allowance affect both partners’ tax codes? Yes. The partner transferring the allowance will see their personal allowance reduced in their tax code. The partner receiving the transfer will have their code adjusted to reflect the tax credit.
Can I claim Blind Person’s Allowance if I am partially sighted? Potentially yes. You do not need to be completely without sight. In England and Wales, you need to be registered as severely sight impaired with your local authority. Your GP can refer you to an eye specialist for assessment.
Do pension contributions really reduce my taxable income? Yes. Personal pension contributions (made net of basic rate tax) reduce your adjusted net income by the gross amount. Employer contributions through salary sacrifice reduce your gross salary directly.
How do I check if my tax code includes my allowances? You can view your tax code through your Personal Tax Account on gov.uk, the HMRC app, or on a recent payslip. If you believe it is wrong, contact HMRC to have it reviewed.
Can I transfer Blind Person’s Allowance and claim Marriage Allowance at the same time? Yes, if you are eligible for both. However, if either partner was born before 6 April 1935, you must choose between Marriage Allowance and Married Couple’s Allowance.
