Personal Tax Allowances 65+

hansi

Thank you again.

bruisedknees

BoGoF wrote: »

It will not be done automatically. Although your date of birth may be known HMRC will not know your total income. What should happen is that a form P161 (Pension Enquiry Form) should be issued 3 months before you turn 65.

This asks for details of all your sources of income so that they can determine if full age allowances are due. If you want it adjusted sooner then you should write to your tax office at the beginning of the tax year with a summary of your estimated income (including savings income). Not sure if you are male or female but if male and will start to receive state pension in November 2008 this will be deducted from your tax allowance.

hansi

When HMRC calculate your 2008/09 code approximately January 2008 they will estimate your total income for the year and will include in your code any age allowance which they think is due on the basis of their estimate.

When you receive their coding notice get in touch with them at that time if you consider their estimate of your income (and therefore the age allowance which they have given) is inaccurate. Do not wait until the beginning of the tax year in April 2008.

BoGoF

Sorry bruisedknees but they will not estimate the total income - how can they estimate what investment income a person has for example - not normally important for a basic rate taxpayer but is for age allowance purposes. Only time age allowance is given is when P161 received or other confirmation of total income.

Yes hansi feel free to contact HMRC early in New Year but can guarantee your 2008/09 tax code will not have increased age allowance without you confirming your total income.

roddydogs

Hope you have better luck than me getting your age allowance, ive now made 4 phone calls and sent two lots of forms in and theyve still got it wrong, so i ive just sent another letter off.( and they dont send any SAEs either!!) and of course phone call are at your expense, no 0800 nos!!!!!!!!!!!!

bruisedknees

BoGoF wrote: »

Sorry bruisedknees but they will not estimate the total income - how can they estimate what investment income a person has for example - not normally important for a basic rate taxpayer but is for age allowance purposes. Only time age allowance is given is when P161 received or other confirmation of total income.

Yes hansi feel free to contact HMRC early in New Year but can guarantee your 2008/09 tax code will not have increased age allowance without you confirming your total income.

OK I'll not be dogmatic about this but I do believe that HMRC's coding systems cannot calculate a tax code without there being an estimate of the income on the "customer's" record. I make no claim that this estimate will necessarily be accurate.

But hansi since you now have a guarantee that your 2008/09 code tax code will not include age allowance you might as well get in touch with HMRC now and give them an estimate of your income for that year in order to give them as much time as possible to get things right.

dzug

bruisedknees wrote: »

You don't have to let them know. HMRC will have your date of birth on record and will/should give you the increased allowance automatically.

I don't believe they will necessarily have your date of birth on record. Even if they do it would be too 'joined-up' to expect them to use it if it was originally supplied for another purpose.

A reminder/request for the higher allowance will do no harm.

In fact to quote the directgov website:

But bear in mind that HM Revenue & Customs (HMRC) won't know your age unless you've told them or shown your date of birth on a tax return or claim form.

Tarasam

bruisedknees wrote: »

OK I'll not be dogmatic about this but I do believe that HMRC's coding systems cannot calculate a tax code without there being an estimate of the income on the "customer's" record. I make no claim that this estimate will necessarily be accurate.

But hansi since you now have a guarantee that your 2008/09 code tax code will not include age allowance you might as well get in touch with HMRC now and give them an estimate of your income for that year in order to give them as much time as possible to get things right.

Ok Ok, the truth here is that HMRC dont always have the date of birth on the system, yes most of the time it is but theres always some that i see in my day to day work that dont.

The coding system will carry it over if its present, yes we do need an estimated income. Before you reach 65 you should receive a P161 pension enquiry form to complete, or you could request one now in preparation.

Its not a problem at the moment, but i would still suggest to ring in prior to the new tax year just to put your mind at rest.

Kelly