Claims that HMRC has officially announced plans to increase the UK tax‑free personal allowance to £13,570 have been circulating widely, prompting fresh debate about income tax, cost‑of‑living pressures, and how much ordinary workers can earn before paying tax. For many people, the idea of a higher personal allowance offers hope of immediate financial relief, particularly after years of rising prices and frozen tax thresholds.
The personal allowance is one of the most important figures in the UK tax system. Even small changes can affect millions of workers, pensioners, and self‑employed people. When reports suggest a jump to £13,570, it naturally raises questions about who benefits, when the change might happen, and whether new rules or conditions are involved.
This article explains what has actually been announced, where the £13,570 figure comes from, what the so‑called “side rule” refers to, and what UK taxpayers should realistically expect.
What the tax‑free personal allowance is
The tax‑free personal allowance is the amount of income a person can earn each year before paying income tax. For most people, it applies to wages, pensions, and other taxable income.
This allowance forms the foundation of the income tax system, determining when the basic rate of tax starts to apply.
Why the personal allowance matters so much
Changes to the personal allowance affect take‑home pay directly. A higher allowance means more income is protected from tax, which can improve monthly finances without requiring pay rises or additional benefits.
Because it applies to millions of people at once, even modest changes have wide‑reaching effects.
Where the £13,570 figure comes from
The £13,570 figure is closely linked to the current higher‑rate tax threshold rather than an officially announced new personal allowance. In recent years, discussions around aligning thresholds or adjusting allowances have often referenced this figure.
As a result, the number frequently appears in online reports and commentary, even when no formal policy change has been confirmed.
What HMRC has actually announced
At present, HMRC has not confirmed an automatic increase of the standard personal allowance to £13,570 for all taxpayers. There has been no official announcement stating that everyone’s tax‑free allowance will rise to that level immediately.
What has been confirmed is ongoing review and planning around tax thresholds, including how allowances interact with other parts of the tax system.
Why tax threshold reviews are happening now
The government regularly reviews tax thresholds to balance public finances, inflation, and fairness. In recent years, thresholds have been frozen rather than increased, a policy that has quietly increased tax receipts as wages rise.
As economic pressures grow, discussions about adjusting thresholds naturally return to the spotlight.
What the “new side rule” refers to
The term “side rule” is not an official HMRC label, but it is commonly used to describe conditions or linked rules that affect how an allowance applies. These can include income limits, tapering rules, or interactions with other thresholds.
In this case, reports often use the phrase to describe how the allowance might operate alongside higher‑rate thresholds rather than as a simple across‑the‑board increase.
How tapering already affects higher earners
Currently, the personal allowance is reduced for individuals earning above a certain income level. This means not everyone benefits equally from the allowance.
Any future adjustment would almost certainly retain some form of tapering to limit the benefit for higher earners.
Why £13,570 is significant in tax planning
The figure £13,570 is already familiar to many taxpayers because it marks the point at which higher‑rate tax begins. Aligning or referencing this figure simplifies explanations but does not automatically mean the personal allowance itself has changed.
This overlap is a key source of confusion in headlines.
What has not been confirmed
There has been no confirmation that a new £13,570 allowance will apply universally. There has also been no announcement of a start date, automatic rollout, or guarantee that take‑home pay will rise for everyone.
Without legislation or official guidance, such changes remain proposals or discussions rather than policy.
How HMRC usually announces tax changes
When tax rules change, announcements are typically made through budgets, fiscal statements, or official HMRC guidance. These are accompanied by clear explanations of who is affected and when changes take effect.
Major changes are rarely introduced quietly or without notice.
Why headlines can be misleading
Tax policy is complex, and headlines often simplify details to attract attention. Numbers like £13,570 are eye‑catching, but without context they can give a misleading impression.
Understanding the difference between discussion, planning, and confirmation is essential.
What an increase would mean for workers
If the personal allowance were increased, most basic‑rate taxpayers would see a modest increase in take‑home pay. The exact amount would depend on income level and tax band.
However, until a change is formally confirmed, pay packets remain unaffected.
What it would mean for pensioners
Many pensioners rely on the personal allowance to reduce or eliminate income tax on their State Pension. Any increase could provide relief for those whose pension income currently sits just above the threshold.
Again, no confirmed change means no immediate impact.
How self‑employed people would be affected
The self‑employed also benefit from the personal allowance. Changes would apply through self‑assessment rather than PAYE, but the principle remains the same.
Any confirmed adjustment would be reflected in future tax returns.
Why the allowance has been frozen
The personal allowance has been frozen as part of broader fiscal policy aimed at stabilising public finances. Freezes increase tax revenue without raising rates, a strategy sometimes referred to as “fiscal drag”.
This context explains why any increase attracts attention.
How inflation plays a role
Inflation reduces the real value of allowances over time. Even without a cut, a frozen allowance effectively means people pay more tax as wages rise.
This has fuelled calls for adjustments or reviews.
What taxpayers should do now
For now, taxpayers should plan based on current rules. Payslips, tax codes, and self‑assessment calculations remain unchanged unless officially updated.
Relying on unconfirmed changes can lead to budgeting mistakes.
How to check your current tax code
Your tax code shows how much tax‑free income you receive. Checking it regularly ensures accuracy and helps identify errors.
Any confirmed change to allowances would be reflected automatically.
Why clarity is important
Tax affects everyday decisions, from work hours to retirement planning. Clear, accurate information helps people make informed choices without unnecessary anxiety.
Speculation can undermine confidence.
What to watch for next
The key indicators of real change will be official budget announcements, HMRC guidance, and legislative updates. These sources provide certainty rather than speculation.
Until then, reports should be treated with caution.
How this fits into wider tax reform discussions
The personal allowance is just one part of broader tax reform debates. Discussions often include thresholds, rates, and reliefs working together rather than in isolation.
Any change is likely to be part of a wider package.
Why public interest is so high
After years of rising costs, many households feel squeezed. Tax relief feels tangible and immediate, which explains the strong reaction to headlines suggesting an increase.
Hope and frustration often coexist in these discussions.
The difference between plans and policy
Governments often explore options long before confirming policy. Planning does not equal approval, and discussion does not equal implementation.
Recognising this difference helps manage expectations.
What HMRC’s role actually is
HMRC administers tax rules but does not set tax policy. Decisions about allowances are made by the government and approved through Parliament.
This distinction matters when interpreting announcements.
How misinformation can spread
Social media and online platforms often recycle numbers without context. Once repeated enough, speculation can appear factual.
Careful reading is essential.
What families and advisers should know
Families and financial advisers should base guidance on confirmed rules. Premature assumptions can lead to confusion or poor advice.
Stability matters more than speed.
Key points to remember
There is currently no confirmed universal increase of the personal allowance to £13,570. The figure is linked to existing thresholds and ongoing discussions rather than a guaranteed change.
Final thoughts
The idea that HMRC has officially announced a £13,570 tax‑free personal allowance needs to be understood carefully. While discussions around thresholds and fairness continue, no formal policy change has yet been confirmed.
For UK taxpayers, the safest approach is to rely on official announcements and current rules while keeping an eye on future developments. The personal allowance remains a crucial part of the tax system, and any genuine change will be clearly communicated when it happens. Until then, clarity and caution remain the best guides.