Check your tax - you could be in for a rebate
20/08/2008
Pensioners on low incomes may find that their usual payment on or after September 7th may be larger than usual - by about £60. It is NOT a mistake. This is a back-dated payment owed to you from April 2008 when the HMRC scrapped the 10% tax rate. It will be a one-off sum, and thereafter your regular payment should be around an extra £10 a month.
As from September 7th the tax code will change because the Chancellor announced that the basic Personal Allowance is increasing by £600 from £5,435 to £6,035, and the basic rate limit is reducing from £36,000 to £34,800. The new tax codes and rate bands must be used from the first payday on or after 7th September.
HMRC is writing to all employers advising that they can get ready in good time, but make sure you check all your new tax codes - especially if you have private pension scheme and/or are still working and on a low income. The rise in Personal Allowance may not seem a huge amount - but every little helps! For more information visit the website linked below.
If you feel you need some extra help, contact your local CAB who can make calls for you from their offices.