Income Tax

[smoker1]

I am a 65 year old Married Pensioner wth a Tax Code of 230P. Last year my Gross was: �8334.50. I paid �1074.70 Tax. Anyone know if this correct? I would be grateful for any replies.

[Ethel]

According to my calculations your income tax is correct.

You can only earn �2300 before becoming liable for income tax at standard rates.

[smoker1]

Ethel,is my Personal Allowance not somewhere around the �4000 mark?with me being married?

[Ethel]

smoker1 - you're personal tax allowance should be around the �7000 as you are 65.

But you must have either:

a) another source of income - perhaps a pension or benefit that counts towards tax.

b) not paid all tax owing in previous years.

When were you 65? Could it be your state pension that accounts for the missing �5000 or so?

[Ethel]

Found this useful link for you:

http://www.hmrc.gov.uk/rates/it.htm

I think you are far too young to qualify for married persons' allowance - it was abolished some years ago but those born before 1935 are still entitled to it.

[smoker1]

Ethel,I am grateful for your answers. I do have a pension from Norwich Union which accounts for about �7000 of my gross,but I came on to OAP State Pension in October 2005,which should make up the other �1300 or so up until April. Hope this makes semse to you. I rang Tax Ofice and was told to send my P60 to them,but I am a bit reluctant to do this as once before,years ago,I never got it back. Hope you can help further.

[smoker1]

Ethel,Forgot to mention,but up until October 2005,my Tax Code was 20L. Don't know if this makes any difference.

[Ethel]

I'm sorry, smoker, but it is now far too complex for me!

I understand your reluctance re the P60. If you have time, take it to the tax office and let them photocopy it and release the original straight back to you.

I really do think it is worth your while to make an appointment and go and see them. Take as much paperwork re your pension and other incomes as you possibly can. Make sure you bring all originals back!

Although I am sure that if the code is correct the amount of tax you paid is correct.

It is the code we are querying now.

[smoker1]

Thank You very much for your time and effort,Ethel,it was most appreciated.