10 ways to get income without paying any tax – how many of these loopholes did you know?
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MILLIONS more people are set pay income tax this year thanks to below inflation increases in the personal allowance. But there are still plenty of legal ways to take a tax-free income with a few perfectly legal loopholes. The personal allowance stands at £12,570 and is the amount you can earn without paying any tax - anything above this limit will start to trigger income tax.
![[Woman reviewing personal finances.]](https://www.thesun.co.uk/wp-content/uploads/2024/04/generic-stock-photo-woman-calculating-827031053_39a8a5.jpg?strip=all&w=960)
The personal allowance has not changed since the 2020/21 tax year meaning that with inflation and rising wages more people naturally get pulled into paying tax. It's estimated 3.2 million more people will pay income tax in the current tax year than would have paid it if the personal allowance had risen with inflation, according to savings and investment provider Hargeaves Lansdown.
At the same time, 2.5 million more people will pay higher and additional rate tax of 40% and 45% respectively, which kicks in earnings above £50,270 and £125,140. And it's only going to get worse because tax thresholds have been frozen until April 2028, says Sarah Coles, head of personal finance at Hargreaves Lansdown.
She added: “More of us are taxpayers now, and more pay tax at higher rates. "Gone are the days when being a higher rate taxpayer was the preserve of the very wealthy – now around a fifth of taxpayers pay higher or additional rates.". Yet, there are ways that you can escape the tax raid and legally take an income without handing a share to the taxman.
