PAYE - one for the oldies.

Discussion in 'Current Affairs' started by 2badge_mango, Mar 4, 2008.

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  1. Mrs Mango and I recently received our 2008-2009 tax coding notices.
    Nothing strange there, so gave them a cursory glance and put them aside for filing. During an idle moment I was comparing them with last year, and found that the Revenue and Customs forecast for our state pensions worked out, in both cases, to an increase of around 6.2%.
    I had understood that the basic pension was to be raised by £3.40, an increase of 3.9%.
    Is Darling Alastair planning to slip in a quick unpublicised sop to the OAPs,
    or has HM Revenue and Customs got our forecasts wrong?
    Have any of our Senior Citizen contributors spotted the same thing, and, if so, would care to comment?

    2BM :w00t: :w00t: :w00t:
     
  2. 2BM, I'm not drawing (OAP) till later this year. You are right that increase is 3.9%
    You say it is your code number that has altered.
    Only a guess but at the age of 65 (men and women) your tax free pay allowance increases from £5000+ to £7000+.
    So if you or mrs 2BM are 65 between 2008-2009 that may be the answer.
    Also the 10% rate goes and the flat rate becomes 20%.
    Could be a combination of the above but will depend on your personal circumstances.
     
  3. Also look if you have other pensions, as they may sting you on them. Also is their an age increase taken into account. like when you get 80 or that type of thing. :rofl:

    I will not ask my son as he says he leaves his job at work and he don't want to know
     
  4. Thanks B(_)b and Neppy,
    None of your points apply to us. We're 72 and 70 respectively and are each entitled to the new personal allowance of £9030 (which was announced in last year's budget to balance the loss of the 10% rate).
    My pension for the past year has been £8076. According to my P2 (tax coding notice), my pension for the next year will be £8576, which is an increase of 6.19%. The residue of my Naval pension will be taxed at the new 20% rate after £454 has been deducted (9030-8576). My pension from my civvy job will be taxed at a straight 20% since I don't reach the ceiling for higher rate tax.
    All that is well within my understanding - it's just the difference between what was announced and what my P2 tells me that prompted me to ask the question.
    Cheers,
    2BM
     

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