Notice of Coding

[malana-3]

Can somebody please help me to understand my new Income Tax Notice of Coding. I am a 76 year old pensioner and my total annual income, before tax is about £26K. This is made up of company pension, state pension and a little investment income. My personal allowance has been reduced from £9640 to £7694. In a telephone call to my tax office I was told that because my income was too high my allowance is reduced, but when I looked on the HMRC website it seemed to imply that this reduction only applies to incomes over £100K. Any laymans explanation would be appreciated. Thanks.

[R1Geezer]

Your income limit for your age realated allownance is £22900, ie you only get the over 75 special allowance of 9640 if you earn less than 22900, so any earnings above that reduce your allowance until it is the same as a non age related allowance currently 6475. This will be done by adjusting your tax free amount, ie your tax code.

see here:http://www.taxcentral.co.uk/taxcentral/h
ome/pockettaxguide/taxguideincometax/default.
asp