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HMRC Tax-free Personal Allowance can be increased to £13,830 for some householdsThe tax-free Personal Allowance has been frozen for years on end - but there is a way that some households can

get a bit more cash in their pocket and from the taxmanCommentsAlex Evans Deputy Audience Editor 12:43, 02 Jun 2025HMRC Tax-free Personal Allowance can be increased to £13,830 for some

households(Image: undefined via Getty Images) The tax-free Personal Allowance has been frozen for a considerable period, and barring an unforeseen policy reversal from the Government, it is

projected to remain at its current level until at least 2028. Due to 'fiscal drag', an increasing number of individuals will find themselves paying higher taxes on their income as wages rise

to combat inflation, and more people earn money that falls within the income tax bracket.

The Personal Allowance refers to the sum you can earn before you begin paying tax, which currently stands at £12,570. Any earnings above this threshold are taxed at 20%, or 40% on earnings

exceeding £50,270 for those in the higher rate tax bracket, and 45% on earnings over £125,000 for additional rate taxpayers.

‌ However, there is one method to boost your tax-free Personal Allowance, provided you are married or in a civil partnership. Married couples or those in a civil partnership can enhance

their tax-free income by £252 annually and can also backdate their claim.

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This can be applied to up to four separate tax years if you choose to backdate the claim. This could potentially result in a tax rebate of up to £1,258, reports the Express.

Article continues below HMRC will then modify your tax code to provide you with the money you're entitled to, which when added to the standard Personal Allowance for the year (£12,570)

totals £13,830 tax-free instead of £12,570, granting you the £1,260 for the four years' worth of £252. To qualify, one partner must be a non-taxpayer, earning less than £12,570.

This could apply if one half of the couple is not currently employed, has been made redundant or is on a career break for childcare reasons. The other partner must be a basic rate taxpayer,

with earnings between £12,570 and £50,270 (after pension contributions have been deducted).

(Image: undefined via Getty Images)Article continues below This scheme, known as the Marriage Allowance, allows the lower-earning partner to transfer £1,260 of their Personal Allowance to

their partner, reducing their tax bill by £252 per year claimed (20% of £1,260). For the 2024-25 tax year, a slight adjustment was made that also permits someone earning between £11,130 and

£12,570 to transfer their Personal Allowance, although earnings within this range are still subject to tax.

It does still result in savings, albeit not as substantial as those earning less than £11,130. Claims can only be backdated for the current year and the previous four financial years,

meaning 2020-21 is now too far back to claim for, but claims can be made for this current year and the past four dating back to 2021-22.