tax allowance

[dosset]

the directgoc web site states that tax allowance for ages 65-75 is £9940 yet my wife has a tax code notice in feb 2011 that states allowance is £7475 can anyone clarify ??

[hc4361]

Is she getting a taxable income such as Incapacity Benefit or a pension?

[dosset]

seems as if the tax allowance was raised in the last budget so that would explain diff..

[twix123]

When was your wife 65? My 65th is this tax year but my tax code hasn't been adjusted yet.

[dzug2]

They may not know her age.

[hc4361]

They will know her age. No doubt about that.

[dzug2]

<<They will know her age. No doubt about that>>

You'd think so - but sadly not always. Not in a form where the computers can use it anyway.

[johnk]

I think the allowance differs according to how much income you have

[factor-fiction]

It depends whether she is already 65. If she is still 64 but becomes 65 during the tax year the higher allowance will not come into effect until her 65th birthday, so her code for the first tax year would later change and reflect the appropriate part of the allowance

[dzug2]

You are entitled the higher tax allowance from the start of the tax year in which you are 65.

Normally you won't be issued with a tax code containing it until you are 65 - but you are entitled to it and will get earlier it if you ask.