Genealogy Chat

For those of you who don't read the General Topics board.

Hubby and I have been recently checking both our mums tax records. My mum is now 71 and is getting the right tax allowance for her age but from 65 to 70 she did not get the extra allowance. We are putting in a claim for her which will mean a really nice refund for her. Hubbys mum who is 78 has never been in receipt of the age related allowance. As they will refund over payments made in the previous 6 years she has received just over £2000 and we are now appealing for the previous years. If you are in the relevant age group you need to be checking your tax code.

Chris

Thanks Chrissie will look at this on behalf of my father (not quite yet there myself)

The age-related tax allowance is an extra amount that people over 65 can claim to reduce their tax bill.

The normal annual tax allowance for individuals aged 64 or under is £5,435 in the 2008/09 tax year (April 6th 2008 – April 5th 2009). However, if you are aged 65 – 74 your annual tax allowance is increased to £9,030 and if you are aged 75 or over your it is increased to £9,180 (in the 2008/09 tax year). If you have an income below these amounts you should not pay any tax. If you have an income above these amounts then the amount you pay will be less than the tax due on under-65 year olds.

Note though that there is an 'income limit' of £21,800 (in the 2008/09 tax year) above which the age-related allowance reduces to the standard basic rate allowance.


Can I get it?
If you are aged 65 or over you are entitled to the age-related tax allowance, so long as your income is below the 'income limit'.

If your income is over the 'income limit' the age related allowance reduces by half of the amount (£1 for every £2) you have over that limit, until the basic rate allowance is reached (you'll always get the basic allowance, whatever the level of your income).


How do I claim?
If HM Revenue & Customs know your age you should get the personal allowance automatically. But bear in mind they won't know your age unless you've told them or shown your date of birth on a tax return or claim form. If you haven't done this already and you are 65 or over you need to contact your Tax Office.

If you want to claim a tax refund because you didn't use your personal allowance (or for any other reason), you need to do so within five years from the 31 January following the end of the tax year concerned. To claim a tax refund you need to contact your Tax Office.