BL**DY TAX MAN

Peter-Pan_5

So does that mean she will get a tax rebate next

month,she stopped working on the 31st July 2004 her

only income is £85 a month. She got £85 in August

September she got £65,£20 off in tax.

dunstonh

My experience of changing tax codes mid tax year (which i used to do a lot myself in my employed years due to expenses and co car), was that they average it out over the months remaining in the tax year and not just the following month.

Peter-Pan_5

She did ring them up and she was told that thanks for

all the help/advice.

Paul_Varjak

A friend of mine (who is 89) ended up with single person (under 75) tax code twice! instead of the tax code for over 75 on one pension and a BR tax code on the other pension.

I pointed this out to the Inland Revenue and they corrected the error. But they are now recouping unpaid tax at the rate of over £100/month (by adjusting her Tax code) without even informing her!

Anyhow, they visited her home and offered to deduct at the rate of £50/month - so they are quite nice really!

Incidentally, if you know of anyone over the age of 75 make sure they have the higher personal allowance as the Inland Revenue never seem to give it automatically when you hit this age. In addition to my 89 year old friend not getting the higher personal allowance - the same thing happened to my mother!

I don't understand why this happens as the IR use your NI number for reference at your date of birth is associated with that NI number!

System

The Inland Revenue issue the form P161 ( Pension Inquiry)at age 60, 65 and 75 all tax payers. Age 60 usually for women to find out if they are in receipt of the State Pension so that it can be taxed through the tax code applied to their employment or occupational pension.
It's issued at age 65 and 75 to both sexes to find out the taxpayers total income as the higher personal allowance is means tested. If you ignore the form then you stay on the normal allowance which is currently £4745. The onus is on the taxpayer to be aware of their entitlements or at least respond to the correspondence they receive from the Inland Revenue.