Michael Edwards offers tax tips to pensioners

UK tax codes for the tax year 2011/2012 are due shortly. Michael Edwards (photo),​ formerly a tax director at Thomson Reuters and now a volunteer adviser with the UK registered charity Taxhelp for Older People (TOP), offers a few tips to look out for and the number of the charity if a pensioner needs to follow up a concern.

“Pensioners should shortly be receiving their 2011/2012 tax code through the post. They should check it thoroughly and challenge HM Revenue and Customs if the code appears to be incorrect. For example, the Blind Persons allowance is often overlooked. Also, there have been many occasions where the age related personal allowance is not given simply because the pensioner has limited dealings with HM Revenue and Customs. If taxpayers start the year with the correct tax code it is likely the right amount of PAYE will be deducted although I have seen errors arise where pensioners are in receipt of more than one occupational pension and find their tax affairs managed by more than one tax district. 

“In respect of the current or previous tax years I have come across pensioners who have unwittingly underpaid tax and suddenly find themselves with a tax demand or a series of tax demands covering a number of years which the tax payer not unnaturally assumed to be right. I have also come across pensioners who are entitled to repayments of tax simply because their pension income is less than their allowances. 

“In short, if you are over 60 and on a low income and you worry about your tax affairs or you are nervous about approaching HM Revenue and Customs and you are unsure if you are paying the right amount of tax please call TOP on 0845 601 3321 or +44 (0)1308 488066 for free help and advice. Or in the first instance visit their website www.taxvol.org.uk.” ■