TAX MUST be paid on any income which is greater than the Personal Allowance. Those with a high income above the income limit for this free tax allowance could be at risk of losing some – or all – of this tax relief.

The UK income tax system means that income is divided into different bands, however income tax bands are different if one lives in Scotland. In England, Wales and Northern Ireland, the first of four bands is the Personal Allowance, and this has a tax rate of zero per cent. The taxable income for this band is a maximum of £12,500. This means that no income tax is required to be paid on a person’s first £12,500 of income.

The next band of tax is known as the Basic rate.

This means that any taxable income between £12,501 and £50,000 will be taxed at a rate of 20 per cent.

The Higher rate tax band covers taxable income between £50,001 and £150,000.

It means that taxable income within this range will be taxed at a 40 per cent rate.

The Additional rate applies to taxable income of more than £150,000, and the tax rate stands at 45 per cent.

Those with taxable income of more than £100,000 may not get the full UK Personal Allowance.

Tax allowance 2019: Person managing finances

Tax allowance 2019: England, Wales, and Northern Ireland have four income tax bands (Image: GETTY)

Tax allowance 2019: Table of band and rates

Tax allowance 2019: There are four bands with four different rates in the UK (excluding Scotland) (Image: Tax allowance 2019: Table of band and rates)

The Personal Allowance goes down by £1 for every £2 of income above the £100,000 limit

Government website

This is because for every £2 of income above this threshold, the Personal Allowance reduces by £1.

The government website states: “The Personal Allowance goes down by £1 for every £2 of income above the £100,000 limit. It can go down to zero.”

This is known as the income limit for Personal Allowance and it means that some people may get less of the £12,500 tax relief, or none of it at all.

In fact, in the tax year of 2019/20, those with taxable income of more than £125,000 will not get the Personal Allowance.

Some people may take notice of their personal tax code.