A petition urging the government to raise the personal tax-free allowance to £18,000 has reached 10,000 signatures on the Parliament website, triggering a mandatory response from the Labour government.
Petition Details
The petition argues that the personal tax allowance has been frozen at £12,570 since 2021. This freeze was originally set to expire this year, but Chancellor of the Exchequer extended it until 2031. The petition states: "We want to keep some more of our own money." It also highlights that minimum wage earners may soon pay tax due to fiscal drag, while some higher earners pay little or no tax through accounting rules, calling this "so wrong."
Government Response Required
With 10,000 signatures, the government must now respond. To be considered for a parliamentary debate, the petition needs 100,000 signatures. As it stands, UK taxpayers can earn £12,570 before paying income tax in the 2026/27 tax year.
Current Tax Rates (excluding Scotland)
- Basic rate (20%): Taxable income up to £37,700
- Higher rate (40%): Taxable income between £37,701 and £125,140
- Additional rate (45%): Taxable income over £125,140
Scottish Tax Rates
- Starter rate (19%): Up to £3,966
- Basic rate (20%): Over £3,966
- Intermediate rate (21%): Over £12,988
- Higher rate (42%): Over £31,092
- Advanced rate (45%): Over £62,430
- Top rate (47%): Over £125,140
For both systems, the Personal Allowance reduces by £1 for every £2 earned above £100,000, meaning those earning £125,140 or more have a zero personal allowance. These thresholds are frozen until 2030/2031, pulling more taxpayers into higher rates than if they had risen with inflation.
