Individuals can receive an amount of income before having to pay income tax. This is known as the personal allowance. This varies from year to year. Taxfiler will allocate the personal allowance relevant to the tax year you are completing.

The personal allowance is reduced for those individuals earning more than £ 100 000, in this case the basic personal allowance is reduced by £1 for each £2 you earn over the £ 100 000 limit.

Where the individual has gift aid and pension contributions this increases the basic rate limit and increases the £100 000 limit by the same amount.