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UK Tax allowances increase at 65 and 75


tinabee
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Some of you may know that UK personal allowances increase when you reach age 65 (and again at 75). What is often not made clear is that the increase applies to the whole tax year in which you reach 65 (or 75). 

There is a very good article here on the best way to get your tax allowances increased at the start of the tax year so that you benefit from them straight away and do not have to claim refunds. There are also worked examples to help you calculate whether you are getting the right allowances.

http://www.litrg.org.uk/pensioners/life-events/coming-up-retirement/tax-code-retire

This situation applies to everyone receiving (or about to receive) a UK state pension who also have other UK income.

 

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[quote user="Judie"]These age related allowances are only due in full if your income is below £24000 in the current tax year. Once your income goes over this amount, the increased allowance is reduced by £1 for every £2 of income.
[/quote]

Sadly, this is true. There is also an upper earnings limit of £28,930 above which, you just get the standard personal allowance. What irks me, is that this information is not easy to find on the HMRC website, meaning that if you do want to check your tax code, it is really difficult to achieve.

However, this website does seem to have all of the detail available, even if you have to search around for it.

The new allowances and upper limits for 2012-13 are listed here

http://www.litrg.org.uk/low-income-workers/tax-and-nic-rates

I am in the process of updating a spreadsheet for 2012-13 to check tax codes, bearing in mind HMRC haven't got it right for the past n years [:@]

 

 

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[quote user="tinabee"]

.

However, this website does seem to have all of the detail available, even if you have to search around for it.

The new allowances and upper limits for 2012-13 are listed here

http://www.litrg.org.uk/low-income-workers/tax-and-nic-rates

I am in the process of updating a spreadsheet for 2012-13 to check tax codes, bearing in mind HMRC haven't got it right for the past n years [:@]

 

 

[/quote]

http://www.hmrc.gov.uk/rates/it.htm

Easy to find, just do a little search on HMRC web site.

 

 

Edit:I also, do a little test on listen to the tax man web site. That is pretty good for basic things.

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[quote user="idun"][quote user="tinabee"]

.

However, this website does seem to have all of the detail available, even if you have to search around for it.

The new allowances and upper limits for 2012-13 are listed here

http://www.litrg.org.uk/low-income-workers/tax-and-nic-rates

I am in the process of updating a spreadsheet for 2012-13 to check tax codes, bearing in mind HMRC haven't got it right for the past n years [:@]

 

 

[/quote]

http://www.hmrc.gov.uk/rates/it.htm

Easy to find, just do a little search on HMRC web site.

 

 

Edit:I also, do a little test on listen to the tax man web site. That is pretty good for basic things.

[/quote]

It was the upper earnings limits that I couldn't find on the HMRC website, but I just realised it is because it is possible to calculate it (doh!)[:$]

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