Every child in the UK has the same personal tax allowance as an adult. For 2026/27, that means a child can receive up to £12,570 of income before owing any income tax, and children with only savings income can actually earn far more than that before a penny of tax is due.

Each child has their own personal allowance, which means they can earn up to this amount without paying any tax. For the 2024/25 tax year, this allowance stands at £12,570.

In the UK, children are entitled to the same tax-free personal allowance as adults. For the 2024/25 tax year, this stands at £12,570. This means that if a child receives income below this threshold, they won’t pay income tax.

Income Tax rates and bands The table shows the tax rates you pay in each band if you have a standard Personal Allowance of £12,570. Income tax bands are different if you live in Scotland.

There’s usually no tax to pay on children’s accounts. Tell HMRC if, in the tax year, the child gets more than £100 in interest from money given by a parent. The parent will have to pay tax on...

Like adults, children get a personal tax-free allowance, which is how much income they can earn before paying any tax. This is £12,570 in the 2026-27 tax year and was the same in 2025-26.

Children are entitled to a tax-free personal allowance for income tax (currently £12,570) as well as the capital gains annual exemption (currently £12,300 but reducing to £6,000 from 6 th April 2023).

Children have the same tax allowances as adults Every child is entitled to: Personal Allowance: £12,570 (2024/25) They pay no Income Tax until income exceeds this. Dividend Allowance: £500 (2024/25) Capital Gains Tax (CGT) Annual Exemption: £3,000 (2024/25) Therefore a child can legally receive quite a bit of income tax-free. Earnings from employment (e.g., working a job or for the family ...

They are entitled to a personal allowance, meaning income within this limit remains untaxed. If a child engages in trading, such as selling items on online platforms like eBay, they can benefit from the £1,000 trading allowance.

Although children are entitled to the same income tax personal allowance as most adults (£12,570 for 2025/26), tax rules operate to prevent parents from transferring income to their children in order to benefit from lower tax rates.