Age Allowance 65-74

Silverjan

My Personal Allowance for the tax year 2010/2011 was £6475, but as I became 65 on 28th March 2011, should I have received the age related Personal Allowance of £9490 for that year?

Mikeyorks

Yes. But you will only get it if you've completed a P161 (Pension Enquiry) form?

If you haven't had one then contact your HMRC PAYE office to request one. Any overpaid tax for 10-11 / revised code for 11-12 should be issued once they've processed it. (Bear in mind there is a £22900 income threshold beyond which the age allowance starts to reduce)

patanne

Yes you should. But when I enquired they only give it to you once you actually reach 65, so with birthdays in late March it can be difficult to get it sorted before the end of the tax year. Mines on the 15th so I just made it & got my £600 tax back in my pay.

patanne

Mike - I've just read what you said about a P161. I'm pretty sure I haven't filled one in. I'm just starting to take my state pension after deferring but am carrying on working but no private pension this tax year. Could they have assumed that because of a phone call.

Silverjan

Mikeyorks wrote: »

Yes. But you will only get it if you've completed a P161 (Pension Enquiry) form?

If you haven't had one then contact your HMRC PAYE office to request one. Any overpaid tax for 10-11 / revised code for 11-12 should be issued once they've processed it. (Bear in mind there is a £22900 income threshold beyond which the age allowance starts to reduce)

Thanks - I'll do that - might get it sorted out by the end of the next tax year judging by the reports one hears!!:)

Mikeyorks

patanne wrote: »

Could they have assumed that because of a phone call.

Yes - that, or a letter with the equivalent detail, is an alternative if you gave them everything needed (and they were prepared to accept it over the 'phone). The main reason for the P161 is to determine if the full age related allowance is applicable. See this internal instruction from the HMRC site :-

do not give age-related allowances until you have either

• Received a completed form P161

Or

• Been given the necessary information to be able to calculate the age-related allowances

http://www.hmrc.gov.uk/manuals/pommanual/paye76085.htm

Jennifer_Jane

Silverjan, yes, you should have had this.

I was sent mine automatically by HMRC a few weeks ago. My 65th birthday is next January, 2012, which means I will be 65 during the forthcoming 2011/2012 tax year.

Here is some additional information:

https://forums.moneysavingexpert.com/discussion/comment/41513344#Comment_41513344

http://search2.hmrc.gov.uk/kb5/hmrc/forms/view.page?formid=3161&record=VYd0uMhbiYk

There is no reason why HMRC shouldn't sort this out for you immediately, I would think, but my advice is to know in advance what your tax allowance should be (ie Basic State Pension is taxable but not taxed, and the coding goes to your Company pension provider for them to take off the appropriate tax). This was all done for me before I received official notification of what my total State Pension would be and HMRC did ask what my annual Company Pension would be (to check it's below the £22900 level. So just to have those annual amounts with you too when you phone.

Good luck! I've actually found the Tax Office to be easy to get through to and pleasant enough.

Mikeyorks

Silverjan wrote: »

Thanks - I'll do that - might get it sorted out by the end of the next tax year judging by the reports one hears!!:)

They are normally fairly swift (that's a relative term ) with P161s and the related changes. But - you will have to wait until they get your 10-11 pay / tax details before they can process the potential overpayment.

patanne

That explains it. I did make it clear that I expected no income other than my normal salary & it was so near the end of the tax year they probably thought it easier than having to sort a refund later. It does pay to keep on top of these things! Thanks for the info.

Mikeyorks

Jennifer_Jane wrote: »

I was sent mine automatically by HMRC a few weeks ago. My 65th birthday is next January, 2012,

Very unusual - if the P161 does relate to your 65th? As they will normally only issue it a month in advance of the State Pension becoming payable (see the link below). For the reason that most people cannot accurately forecast their income (pensions / interest etc) too far in advance.

Is the P161 not related to State Pension and (as a female) you may expect another just in front of your 65th :-

http://www.hmrc.gov.uk/pensioners/approaching-why.htm

Jennifer_Jane

Mikeyorks wrote: »

Very unusual - if the P161 does relate to your 65th? As they will normally only issue it a month in advance of the State Pension becoming payable (see the link below). For the reason that most people cannot accurately forecast their income (pensions / interest etc) too far in advance.


Is the P161 not related to State Pension and (as a female) you may expect another just in front of your 65th :-

http://www.hmrc.gov.uk/pensioners/approaching-why.htm

Sorry, should have been clearer (but see the post I included in my post above). I was not sent a P161 and have not completed this at all. I was merely sent the new PAYE Coding Notice without requesting it.

I am now on the correct Tax Code (having phoned the tax office to explain that my pension does not take me above £24000 - am reading from it now).

I do not expect any further forms until next year when my State Pension will rise again. The Tax Office had, themselves, assumed my State Pension would be increasing by 4%.

This is all what I expected to happen (but doubted it would). I am 65 next year, but in this coming tax year.

I was entitled to State Pension from age 60, but deferred till just over age 62.