For the 2025-2026 tax year, the basic personal allowance in the UK – the most money you can earn before paying income tax – remains at £12,570. Still, some people may be eligible for additional benefits, which can increase their tax-free income to £18,570. This page explains who is eligible for these benefits and how you can find out if you are eligible

Understanding the £18,570 Tax-Free Income

The £18,570 tax-free income is achievable by combining the standard Personal Allowance with additional allowances available to specific groups:

• Standard Personal Allowance: £12,570
• Blind Person’s Allowance: £3,130
• Personal Savings Allowance: Up to £1,000 for basic-rate taxpayers
• Trading and Property Allowances: £1,000 each for miscellaneous income and property income(Which?, The Sun, att.org.uk)

By utilizing these allowances, eligible individuals can earn up to £18,570 without incurring income tax.

Eligibility Criteria

1. Standard Personal Allowance (£12,570): Available to most UK residents with an annual income below £100,000. (Towerstone Accountants)
2. Blind Person’s Allowance (£3,130): If you’re registered blind or severely sight-impaired, you can claim this additional allowance, increasing your tax-free income. (Towerstone Accountants)
3. Personal Savings Allowance (Up to £1,000): Basic-rate taxpayers can earn up to £1,000 in savings interest tax-free. Higher-rate taxpayers have a £500 allowance, while additional-rate taxpayers are not eligible. (Which?)
4. Trading and Property Allowances (£1,000 each): If you earn income from casual trading (e.g., selling items online) or property (e.g., renting out a room), you can claim up to £1,000 tax-free for each. (Which?)

How to Maximize Your Tax-Free Income

• Combine Allowances: If eligible, combine the standard Personal Allowance with the Blind Person’s Allowance, Personal Savings Allowance, and Trading/Property Allowances to reach the £18,570 threshold.(Which?)
• Monitor Income Levels: Ensure your total income doesn’t exceed the thresholds for each allowance to maintain tax-free status.
• Claim Applicable Allowances: Proactively claim allowances you’re eligible for, such as the Blind Person’s Allowance, by informing HM Revenue and Customs (HMRC).

Important Considerations

• Income Over £100,000: Your Personal Allowance decreases by £1 for every £2 earned over £100,000, phasing out entirely at £125,140. (Which?)
• Marriage Allowance: If you’re married or in a civil partnership, and one partner earns less than the Personal Allowance, you may transfer £1,260 of the unused allowance to the other partner, reducing their tax by up to £252. (Towerstone Accountants)
• Stay Informed: Tax regulations can change. Regularly review HMRC updates or consult a tax professional to ensure you’re maximizing your allowances.

By understanding and effectively combining available tax allowances, eligible UK residents can earn up to £18,570 tax-free in the 2025–26 tax year. It’s essential to assess your eligibility for each allowance and stay informed about any changes to tax laws to optimize your financial situation.

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