New Tax Year 2009/10 Discussion

macro_duck

boobbby wrote: »

It starts from the 5th April if you are 64 in the proceeding tax year. i.e. if you are 64 on the 3 April you get the higher allowance from the 5th April. If you are 64 on the 6th April or later you will not get the higher allowance until the beginning of the next tax year !! (earning may reduce the higher allowance)

I am 65 on 6th February, 2010 - does that mean that I get the higher tax relief for over 65's from 6th April this year.

System

macro_duck wrote: »

I am 65 on 6th February, 2010 - does that mean that I get the higher tax relief for over 65's from 6th April this year.

You are entitled to it from 6 April but it is not given automatically....as other's have mentioned there is an income test and HMRC will not have an up-to-date estimate of yours and they would not know about any changes that are likely to take place when you turn 65...eg any State, occupational or private pensions you are likely to receive from that date.

Once you are happy that you can give them a reasonable estimate of your income for the whole year to 5 April 2010 it might be worth contacting your tax office. The only thing to bear in mind is if you underestimate your income and it does go above the income limit you might have some extra tax to pay after the end of the year.

Mikeyorks

meandher wrote: »

A) Am I right in thinking that a retired couple get £9,490 allowance each. If so and our income is all Joint income would we between us therefore be allowed £18,980 tax free income.

A) 'Retired' isn't the qualification ..... '65 and over' is. If you fall into the latter category then, yes, you each attract the higher Personal Allowance ... but subject to any clawback if either income exceeds the £22,900 threshold.

No .. your taxation is independent. So you need to separate out your personal incomes / pensions / gross interest ...... and the £9,490 is applied to each of you separately.

You can't amalgamate your incomes ... if you perceive that gives a preferential result. But if there's a discordant income - it may be better juggling some of the interest towards the one who has the lesser overall income? Having all savings 'joint' means that interest is categorised as 50:50 ...... and that's not usually the most tax efficient option.

chommin

many thanks but
no change in being forced to change pension funds at this age into annuities or complex draw down with very poor returns
only the independent financial adviser benefits
isn't it about time the age limit was abolished ?

TOTALLY_DISILLUSIONED

I reached 65 last July. My tax code was reajusted on an assumed income of 27000 for the 2008-2009 tax year. In February this year the tax coding for the now current tax year was sent telling me I had underpaid 300 pounds in the year 2008 - 2009. I sent a letter asking where this 300 pounds came from. No reply until I contaced my local MP. The reply still did not state where the extra 300 pounds non payment of tax had come from. So I am still persuing the questions. I will not do it via 2,3,8,10p a min phone calls. I want the results on paper. The assumed income amount for 2009-2010 has gone up by 1500 pounds even though I have now stopped work and interest rates on savings have dropped dramatically.The over 65s should check their codings very carefully and challenge them.I assume that a lot of them will be like mine and the government rely on apathy to leave them with mone of the taxpayers money than they should have.

grenjs

TOTALLY_DISILLUSIONED wrote: »

The over 65s should check their codings very carefully and challenge them.I assume that a lot of them will be like mine and the government rely on apathy to leave them with mone of the taxpayers money than they should have.

I don't get it.

You work all your life, pay Tax and NI and everything and you save for your retirement. Then when you do retire you are taxed on money you've already paid tax on.

Am I missing something here?

seafield

Sorry to appear thick but I was 65 on December 2008 do I qualify for the higher age allowance 2008 - 2009 tax year?

rodders465

Did you also realize that,if you are on pension credit,and you have savings over £6000 your pension credit will be reduced by £1 per WEEK for each £500 over the £6000.This is supposed to represent your earnings on those saving but equates to 10.5% pa. I wish Mr Darling would tell us where to get that to break even plus whatever to get some return on the savings.

macro_duck

seafield wrote: »

Sorry to appear thick but I was 65 on December 2008 do I qualify for the higher age allowance 2008 - 2009 tax year?

I believe so - you need to ring your Tax Office and have the information on your total gross income and if it falls below £22,900 you are entitled to the higher age allowance. I did so today but the computers were down so I shall try in the next few days.

siarad_2

ncm wrote: »

When does the 65-70 Tax allowance start

* Beginning of the tax year in which your 65th Birthday occurs

* From the actual date of your Birthday

* The tax year following your 65th Birthday

The whole tax year in which you become 65.
Don't trust HMRC, I've yet to meet anyone they've given this allowance to so claim it & then check again you've got it for that year.
Anyone who has missed this should back claim, don't be cheated by HMRC incompetence