Monday, April 6, is the start of a new tax year. This means that all kinds of financial limits and thresholds will be reset or changed for 2026–2027. HMRC tax rules follow financial years instead of calendar years, so some allowances and thresholds go from April to April instead of January to December.
Starting this Monday, April 6, everyone who makes money will have their tax-free Personal Allowance limit reset, and a new allowance will be in place for 2026-27. This means that starting on Monday, workers who used up their entire tax-free allowance for 2025–26 will be able to earn more tax-free money for the next tax year.
The tax-free Personal Allowance will be reset for the new tax year on April 6. It will still be £12,570. It hasn’t changed since 2021, when it went up by £70, and this is the same amount it was last year.
It means that workers can only make £12,570 tax-free in a year. After that, they have to pay Income Tax at 20% of every £1 they make above that amount.
The bad news is that the tax-free Personal Allowance won’t go up from April 6, unlike state pensions, Universal Credit, and other benefits.
The government says, “The standard Personal Allowance is £12,570, which is the amount of money you don’t have to pay taxes on.”
“Example: You made £35,000 that you had to pay taxes on, and you got the standard Personal Allowance of £12,570.” You paid 20% in basic rate tax on £22,430 (£35,000 minus £12,570).
He said, “Let’s start with fiscal drag, which is by far the biggest tax increase that will cost everyone.” It’s the freezing of your National Insurance and Income Tax rates. Now, I’ve left out NI because it makes things more complicated. This is for workers, and Scotland has different rates, but I’m really going to talk about the principle.
