New Income Tax Checker

David_of_manchester

Hi. I am over 65 (born in Decermber 1948), married and the tax calculator shows a tax free allowance of £10500 p.a. The Inland Revenue web site shows that the £10500 allowance is only applicable to those born between April 1938 and April 1948.

John_Pierpoint

Yes the "pensioners" additional personal allowance is being frozen out as the standard rate rises to create the squeezed middle.
http://www.thisismoney.co.uk/money/springclean/article-2589204/Navigate-tax-minefield-income-tax-National-Insurance-savings-investments.html

zygurat789

John_Pierpoint wrote: »

Yes the "pensioners" additional personal allowance is being frozen out as the standard rate rises to create the squeezed middle.
http://www.thisismoney.co.uk/money/springclean/article-2589204/Navigate-tax-minefield-income-tax-National-Insurance-savings-investments.html

Ah but John, what I think David was saying was that he was given a personal allowance of £10,500 by the calculator when, in fact, he was only entitkled to £10,000 because he was born after 5 April 1948
http://www.thisismoney.co.uk/money/springclean/article-2589204/Navigate-tax-minefield-income-tax-National-Insurance-savings-investments.html

Yes tax is a minefield.

t0rt0ise

The calculator is also wrong in thinking that NI is not payable for a woman aged 60. This is no longer true. The calculator needs updating.

LFP1973

Have just used this tool. For a female aged 60-65, the tool calculates zero NI. I pay NI, probably due to the changes in retirement age. Can the tool be updated? Or am I wrong?

jem16

LFP1973 wrote: »

Have just used this tool. For a female aged 60-65, the tool calculates zero NI. I pay NI, probably due to the changes in retirement age. Can the tool be updated? Or am I wrong?

No you're not wrong.

Whether it can be updated is up to MSE.

zygurat789

jem16 wrote: »

No you're not wrong.

Whether it can be updated is up to MSE.

Of course it can be updated, whether it is or not is up to MSE.

guns4

Ok this gives me different figures to my pay slip who is right and who is wrong

Basically when I had my pension contribution it is £84 out the same as the hmrc pension why is this?

Maggie100

I used the tool but was confused as I have a state pension and private pension I earn 27000 per year this is made up of 18500 private pension and 8500 state pension I was not sure which income to enter. As my tax is paid from my private pension and not my state pension. My tax code is 189t but I thought the tax code should end with a P as I am over 65 yrs and retired

zygurat789

Maggie100 wrote: »

I used the tool but was confused as I have a state pension and private pension I earn 27000 per year this is made up of 18500 private pension and 8500 state pension I was not sure which income to enter. As my tax is paid from my private pension and not my state pension. My tax code is 189t but I thought the tax code should end with a P as I am over 65 yrs and retired

The final letter of the code is irrelevant for calculating the tax liability.
Your code number is worked out by taking your untaxed state pension from your personal allowance. This would normally be 10,500 - 8,500 = 2000 and a cde of 200. So you are also being taxed on unearned income of £110.
Your income is, as you say, £27,000 and your tax paid is what ever appears on your private pension documentation but don't forget you also have to enter the £110, what ever it is if indeed it is something and not an HMRC error, to get the right answer.