91 year old tax payer?

janeke

I can`t work out if my 91 year old widowed father should still be paying tax. He has pensions amounting to about £1500 per month - the bulk of his savings are in isas & he has a small amount of income from shares.
He gets some interest from 2 bank accounts & ticked the box saying he is still a tax payer - but is he?
I can`t work out how much he can earn without paying tax.
Any help would be much appreciated


jane

molerat

He is receiving income in excess of £18K pa so yes he is liable for tax. As he was born before 1938 he has a tax free allowance of £10660. https://www.gov.uk/government/publications/rates-and-allowances-income-tax/rates-and-allowances-income-tax

CLAPTON

janeke wrote: »

I can`t work out if my 91 year old widowed father should still be paying tax. He has pensions amounting to about £1500 per month - the bulk of his savings are in isas & he has a small amount of income from shares.
He gets some interest from 2 bank accounts & ticked the box saying he is still a tax payer - but is he?
I can`t work out how much he can earn without paying tax.
Any help would be much appreciated


jane

'normal' people have a tax free allowance of 10,000 per annum


however older people can have an allowance up to 10,660 if their income is less than 27,000 p a.


so it would look like he has a tax free allowance of 10,660 per annum after that he is taxed at 20%


for this purpose his income will be
= private pensions (gross)
plus state (old age) pension
plus grossed up interest (non ISA stuff)