A person who is over 65 qualifies for extra personal allowances on top of the standard rate. This additional amount is known as the Age Related Allowance.
However, as the allowance is reduced when income increases over a certain level, problems often arise with tax codes. A tax office does not always know the most up to date income, which may lead to an excessive allowance in your code. This in turn may cause a tax underpayment at the end of the year.
Using our age related tax allowance calculator, you can check whether your tax code shows the right amount.
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