Personal tax allowance. Can anyone please explain it to a numpty like me?

[ThreeLittlePandas]

My, very dim, question is, if you earn more than your allowance do you only pay tax on money above and beyond your allowance or on the whole amount you earn?

Tia :)

On money above and beyond only. So if the tax allowance is £7,200, and you earn £7,201, you only pay tax on the £1.

Thank you

Yup. Unless you have annual income of more than £100k, in which case your personal allowances gets reduced (and ultimately taken away at £115k).

Haha I wish :)

If you want to see how your income gets broken down between personal allowance, National Insurance and the various tax-bands, this online tax calculator gives you a easy-to-read table.