Tax codes for 2011/12 Tax year

Jennifer_Jane

I don't know if this will help anybody, but I've just spent considerable time checking out things and phoning the Tax Office. I am aged 64 but will be 65 during the 2011/2012 tax year and therefore entitled to the higher personal allowance of £9940 per annum.

I've just received my PAYE coding notice and they say:
"£7475.00 is the peronal allowance for people who are between 65 and 74 at 5 April 2012 with total income for the year over £28930. But please read note 3 as well which tells you when to contact us if your income is likely to change".

Then note 3 (which is on the reverse) has some more info, but says "Please tell us if your total income for the year is likely to be less than £28930. ...... etc"

So the onus is on the pensioner to advise the tax office that your income is less than £28930 and THEN they adjust your personal allowance from £7475 to the correct £9940.

I am astonished by this. £28930 is well above the average salary in the Country let alone what pensioners are getting. Anyway, just to say, it's up to you to phone the tax office (and have sandwiches ready for a long wait!) to get the correct personal allowance.

Newly_retired

Easier to put it in writing IMHO.

Jennifer_Jane

Possibly, but I wanted answers to my queries there and then, and I also wanted my Company Pension supplier to have the correct information urgently. It's all done and dusted now. Just have to wait to double check HMRC with the new coding amount. Took less time to phone than to write a letter, take a copy, get envelope, stamp it, and go to the post box.

For me it's a relief that it's done, that I have the answers that were troubling me, but if it suits you better to write, then fine. The point is that the HMRC letter isn't clear that you are entitled to the higher allowance - their letter is misleading.

Newly_retired

My letter assumed that my income exceeded the £28000+ as well. I agree it is a strange assumption to make as I would have thought that most people aged 65 did not get this much.
Glad you were able to get it sorted over the phone without too long a wait.
As I have 4 sources of income, including one from abroad, for me it was better to put it in writing. As it is, I am still not clear whether the foreign income has been taken into account in my new tax code this year. I am expecting a follow-up letter asking how much I have received in foreign income this year. It varies becasue of the exchange rate. I had to to do the same last year. There may be more tax to pay, I guess? My code seems to cover my state pension and occupational pension. A separate annuity is taxed at BR.

Jennifer_Jane

Ah yes, certainly see your point, newlyretired. Yes, mine is much simpler. Very interesting to hear of your circumstances.