Older people paying too much tax?

A report by the National Audit Office has just been published which says that a lot of older people pay too much tax. This happens often because older people may have several different sources of income, rather than one simple salary. For example, tax may be deducted at source from interest-bearing accounts and many people are unsure how to claim it back. They have estimated that 1.5 million older people have overpaid tax by an average of £171, although some older people may have underpaid tax. Completing a tax return is complicated enough no matter what age you are, and however simple your income. It is worth finding out if you might be overpaying tax. I have always found the tax people to be very helpful if you phone them. Alternatively there are some sources of tax advice for older people - we are trying to find out which might be genuinely useful.

The NAO report may be found at http://www.nao.org.uk/publications/0809/dealing_with_the_tax_obligatio.aspx

Dinah 23.10.09