Reference library · 2026/27

How UK tax actually works.

Every mechanic the Strata Money tool calculates, explained in plain English with current numbers and worked examples. Free, no paywall.

Income tax

Personal allowance

The slice of income you can earn each year before any income tax is due. It applies once across all your earnings, salary, bonus, savings interest above the savings allowance, dividends above the dividend allowance, and so on.

The numbers · 2026/27
2026/27 personal allowance£12,570
Taper start£100,000
Fully removed at£125,140