Tax allowance for over 65?

Housebear51

Can someone tell me what is the tax allowance for over 65yr old couple please?

For an income of 20K.

Thanks.

glider3560

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

mrkbrrws

For the current tax year, both have a personal allowance of £9,490 (£9,640 if 75+).

Housebear51

Thank you I thought the condems made it higher?

zygurat789

glider3560 wrote: »

With effect from the 11/12 tax year, so you have to wait until April 2011 to get the higher allowance.

Do you know that for certain?

zygurat789

Where on that link does it say that the age allowance will be going up?

FOREVER21

Over age allowance 9490 is staying at that rate for 2011/12 it was announced in the mini-budget earlyier this year. Also bear in mind the earnings limit of £22900 which can affect this allowance:eek:

zygurat789

FOREVER21 wrote: »

Over age allowance 9490 is staying at that rate for 2011/12 it was announced in the mini-budget earlyier this year. Also bear in mind the earnings limit of £22900 which can affect this allowance:eek:

Do you know that for certain?
As far as I recall the PA was announced as increasing to 7475 but no other announcement was made regarding either the 9490 or 22900.
I suspect that the age allowance is about to be phased out, after all no one in the cabinet is over 65, and hence the 22900 restriction. This will remove the need for many pensioners to submit tax returns and charge them for the priviledge and reduce the workload on HMRC.

System

zygurat789 wrote: »

....
I suspect that the age allowance is about to be phased out, after all no one in the cabinet is over 65, and hence the 22900 restriction. This will remove the need for many pensioners to submit tax returns and charge them for the priviledge and reduce the workload on HMRC.

I hope you are correct because it is totally stupid to retain the complexity of the age related allowances and then expect people of a certain age to have to deal with the complex tax system when they just want to receive their hard earned pension, without the tax man adding confusion to the whole issue. It would also make everyones lives much easier if the state pension was paid tax free, this too would reduce the red tape and simplify both the state pension and the tax system, which could reduce admin costs for DWP and HMRC hence paying for itself in a short period.

CLAPTON

BAA1 wrote: »

I hope you are correct because it is totally stupid to retain the complexity of the age related allowances and then expect people of a certain age to have to deal with the complex tax system when they just want to receive their hard earned pension, without the tax man adding confusion to the whole issue. It would also make everyones lives much easier if the state pension was paid tax free, this too would reduce the red tape and simplify both the state pension and the tax system, which could reduce admin costs for DWP and HMRC hence paying for itself in a short period.

if the age allowance was simply phased out to simplify things then then many over 65 would pay more income tax; I'm sure they would be happy to do that in exchange for a simpler system!


could you show the figures to illustrate that the admin costs of collecting tax on the state pension are equal to or greater than the admin costs of collecting the tax?

John_Pierpoint

Am I right in thinking that the age allowance starts for the tax year during which the tax payer turns 65 (or 75), while National Insurance is a weekly tax that changes when the tax payer reaches the age of 65 (or 60yr & X months for the fair sex)?