If you have recently retired you may be concerned about your tax affairs are want some help. If you have any specific question we may be able to help in the comments section below, so feel free to ask.
Tax Allowances for Older People
|Personal Allowance||2010-11 tax year||Income limit|
|Basic (under 65)||£6,475||£100,000|
|Age 75 and over||£9,640||£22,900|
If you are 65 or over and your income is over £22,900
If your income is over £22,900 your age-related Personal Allowance is reduced by 50% – £1 for every £2 – over the £22,900 limit, until the basic rate allowance is reached.
You are 74 and your yearly income is £23,900 – £1000 over the limit – your age-related Personal Allowance is reduced by £500 to £8,990.
Tax on Retiring
Each year everyone is given a tax free allowance on their income, no matter if its from a job or from your pension. When you retire from your job you may not receive your pension immediately and as a result if you may not get your full tax free allowance for the year and as a result be able to claim a tax refund.