Personal Allowance Change turning 65

azthe

I am now 64 but turn 65 in March (2007-2008) tax year. I read on

http://news.bbc.co.uk/2/hi/programmes/working_lunch/4631168.stm

that I am entitled to my increase in my personal allowance from April 5th 2007. As far as I know this hasn't been done as yet. I am also aware that the personal allowance for 65 year olds will increase again from 2008-2009 tax year. Shouldn't these changes be updated automatically or do I need to contact the IR. Is it possible to reclaim the tax overpaid during this tax year?

Thanks in advance

fengirl_2

It will normally be updated automatically, but if you date of birth is not on your record, this will have been overlooked. Nothing to stop you contacting HMRC and asking for age allowance to be included in your code number now, but you need to remember that your annual income needs to be within the limit for the allowance and your State Pension will also need to be included in your code.

System

Good advice from fengirl.

You could also complete a P161 Pension Enquiry form - http://www.hmrc.gov.uk/pensioners/whyyouneed.htm#1 - this page on the HMRC gives details on the form and also has a link for you to download the form to complete.

dunstonh

You also need to be aware that you can lose the age allowance if you earn over £20,900. This includes earned income, pensions (including stage), interest, dividends and rental income.

If it is savings/investment income that is taking you over the limit then there are ways to stop that from happening.