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 allowance calculator, you can check whether
your tax code shows the right amount.