Financial support for elderly neighbour

littlevet1 · 15 May 2019 at 7:23PM

Hello

I am seeking advice regarding how I can support my elderly neighbour. She has no close family and none local, she also suffers from anxiety and becomes easily overwhelmed.

Recently she has mentioned that she thinks she might need to complete a tax return (she is worried that she has exceeded her personal savings allowance). However has got herself in a muddle with her finances. It appears that she holds multiple accounts each containing varying sums of money and she is unable to keep track of everything.

This is contributing to her anxiety and she is getting in a bit of a state.

Although I wish to help I am reluctant to become involved as I feel this is a private matter and I certainly do not want to pry into her affairs. I am also wary of being accused of having a personal motive for my own financial gain, which is absolutely not the case.

I would like to know if there is a service, perhaps a charity, who would be able to assist her to organise her financial affairs. I don't think she needs investment advice or wealth planning, but simply an 'audit' of her finances, advice regarding a tax return (if necessary) and any other sensible advice for her situation. Is this something that an IFA would do? She mentioned she is happy to pay for help.

Thank you in advance.

[purplesignup][/purplesignup]

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MovingForwards · 15 May 2019 at 7:39PM

Age concern would be a starting point, so you are 'helping to point her in the right direction' but not getting involved with the financial side.

littlevet1 · 15 May 2019 at 7:45PM

I have just learned that if my neighbour does owe any tax due to exceeding the personal savings allowance, this should be collected automatically by HMRC by an alteration in her tax code. This should relieve her worries regarding a need to complete a tax return

tacpot12 · 15 May 2019 at 8:50PM

Well done for trying to help littlevet1.

While I understand your reticence in getting involved, I think your neighbour needs help, and will find it difficult to get someone else to show the level of care you have already shown.

I think you should talk to your neighbour about what happens in future, say if she starts to becomes forgetful? Your neighbour probably needs someone to have a Power of Attorney for her, whether this is a member of her distant family or someone locally that she knows and trusts is a matter for her, but you could at least raise the subject.

pollypenny · 16 May 2019 at 8:26AM

Age Concern were very helpful in my aunt's case. It's worth asking your neighbour if you can arrange a visit.

Farway · 16 May 2019 at 9:46AM

littlevet1 wrote: »

I have just learned that if my neighbour does owe any tax due to exceeding the personal savings allowance, this should be collected automatically by HMRC by an alteration in her tax code. This should relieve her worries regarding a need to complete a tax return

Tax codes would only be of use if neighbour has income from a source that is PAYE taxed, such as personal pension

If she only has state pension & state provided income this is not taxed at source, so tax code alteration would not help

I am in this position & have to send a cheque off to HMRC annually to pay my tax, it would be much easier if this could just be knocked off my state pension but it can't

Sea_Shell · 16 May 2019 at 10:11AM

There is always the possibility that if you bring up PoA, that they may ask you!! depending on how close you are and what family they have (or trust).

Would you be prepared to take this on, if asked? If not, I'd we wary of suggesting it, in case you have to knock them back.

Savvy_Sue · 16 May 2019 at 6:28PM

I don't know if TaxAid could be of any help: it says it "advises only people on low incomes whose problems cannot be resolved with HMRC" and that may not apply to your neighbour. However, they may know someone else who can help if not.

Also it may be worth scanning the stickies on the Cutting Tax board or asking the board guides here to move it there.

BTW I'm sure an IFA could help, but a bog standard accountant might also be useful for just getting on top of the different accounts, and any tax due, if she doesn't actually need the financial advice.