Tax-free Personal Allowance increased to £16,320 for self-assess households

Tax thresholds have been frozen for another three years, meaning three extra years of fiscal drag pushing more and more people into paying tax for the first time. But despite the freeze announced in the Budget in November, you can push your tax-free allowance beyond the basic £12,570 if you participate in a scheme allowed by HMRC and complete a self-assessment tax return.

But people can take advantage of a little-known rule that will boost their Personal Allowance all the way up to £16,320, or as high as £20,070 for a single person, far beyond the normal £12,570 that's been frozen since 2021 and will now remain stuck in place until 2031.

When bands are frozen, it means more and more people are going to be dragged into paying more tax as inflation pushes wages up and causes more workers