What does the Personal Tax Allowance mean? #AskAMS

Every person who is resident in the UK is given a personal allowance each tax year. It operates as follows:

The personal allowance is the amount of income you can receive before paying tax – and it increases each tax year.  For the 2018/19 tax year, it will be £11,850. So, if you earn £20,000 in 2018/19, you will be subject to income tax on £8,150 of your earnings.

The personal allowance is reduced when your income exceeds £100,000 in a tax year (by £1 for every £2 your income exceeds £100,000) – so that when your income reaches £123,700 (in 2018/19), you will no longer receive a personal allowance.