pensioner paying basic rate tax?

Alimac_2

My 73 yr old Dad pays basic rate tax (i've recently discovered) on his small private pension of about £2k a year - that can't be right surely? His only other income is state pension. I phoned the tax office and they said they'd deal with it a few months ago - but nothing yet. He's scared to push it incase he ends up owing money. Can anyone help?

PlutoinCapricorn

It does not sound right, all the more as the Personal Allowance for people 65 or older is much higher than the normal PA. It is around £9,490 which means that he can receive this before he starts to pay tax. If the state pension gross and the other pension gross come to less than this, he has been paying tax unnecessarily.

Do HMRC know his birthdate? Perhaps the Pension Company is obliged to tax the pension at source. Has your father got any savings from which he is receiving interest?

www.taxaid.org.uk and Citizens Advice are helpful, and a letter to HMRC might give good results. I am not sure how far back they can go. See forms P161and R40 on HMRC's website.

PS look at the MSE News on the right!