AAA Display options

The new force combining Age Concern logo & Help the Aged logo

Top 10 tax mistakes

Top 10 tax mistakes

Are you paying the wrong amount of tax? Many people are, and even HM Revenue & Customs sometimes slips up.

So, whether it's having the wrong tax code, not submitting your tax return or others errors, read our list of 10 common tax mistakes below to ensure you’re not giving the taxman more than you should be.

1. Missing out on allowances

The amount of income you can have tax-free goes up once you reach 65; this is called your personal allowance. You get the higher allowance from the start of the tax year in which you turn 65 (or 75), so make sure your tax office knows your date of birth.

2. Not claiming blind person’s allowance

You get an extra allowance if you are registered blind, or if you live in Scotland or Northern Ireland and your sight is too poor for you to do any work for which eyesight is essential. You can claim for the year before you were registered, providing that you have evidence of blindness for that year.

3. Not working as a team

Couples can save tax by giving investments to the partner who pays the lower rate of tax – but it has to be a real gift, not a gift in name only. If you are married or a civil partner and one of you was born before 6 April 1935, you also get an extra married couple’s allowance.

4. Not transferring unused allowances

If your income is too low to use up all your married couple’s allowance or blind person’s allowance, you can transfer the unused part to your husband, wife or civil partner. Contact your tax office for more information.

5. Paying tax when you don’t need to

Income tax is taken off your bank or building society interest before you get it. If your total income – including pension, earnings and interest – is less than your allowances, fill in form R85 to get your interest paid with no tax taken off. Your bank or building society can provide this form.

6. Not claiming back overpaid tax

If you’ve paid too much tax because you’ve failed to claim an allowance or tax relief, or because too much tax has been deducted from your income, you can usually claim tax back within four years of the end of tax year in question. Ask your tax office for form R40.

7. Not checking your tax code

Your tax code tells your pension company or employer how much pay you can be paid free of tax – tax is taken off the rest. Your tax office will write to you from time to time explaining how the code was worked out. Check they have given you the right allowances, that the amount of pension or other income shown is correct, and query anything that you don’t understand.

8. Still working?

If you change your hours, tell HMRC. They may need to adjust your tax code. Be particularly careful if you have a job as well as a pension - you get a code for each source of income, but it’s common for the wrong amount to be deducted.

9. Retirement coming up?

Make sure your tax office knows in good time if you expect to start receiving a pension in the next few months so that they can sort out your tax code.

10. Putting off your tax return

If you are sent a tax return, you must fill it in by 31 October, or by 31 January if you do it online. New, tougher, penalties make missing the deadline expensive – there’s an automatic penalty, plus higher penalties after a further three months.

For more information visit www.hmrc.gov.uk

Your Age NI

Set your location to see what Age NI offers in your local area.

Age NI Advice:
0808 808 7575
Let's talk money 

Let's talk money publications

  • opens link in new window More money in your pocket booklet
    A guide to claiming benefits for people over pension age. (PDF 164KB)

    opens link in new window Pension Credit leaflet
    3 steps to find out if someone you know qualifies for Pension Credit. (PDF 105KB)


      View all Money matters downloads Help with Downloads

      Downloads

      What is a download?

      A download is a document (like a research report, a leaflet, or an application form) that can be transferred from our website to your computer. You can download a file, view it on your screen, print it, or save it to your computer.

      What is a PDF?

      PDF stands for ‘portable document format’.

      Most downloads on this website are PDFs. We use this format to ensure that the document looks the same on everyone’s computer (website pages, by contrast, appear differently depending on how people have got their computer set up).

      How do I download a PDF?

      Computers use a program called Adobe Acrobat Reader to download PDFs. If you try clicking on a link to download a PDF and it doesn’t work, you will need to install Adobe Acrobat Reader onto your computer.

      How do I install Adobe Acrobat Reader?

      The process is quite straightforward and is free.

      1. Go to opens link in new window http://get.adobe.com/uk/reader/
      2. Click ‘Download’.
      3. Wait for the window to offer you the option to ‘Run’, then choose this option.
      4. Click ‘Next’.
      5. Click ‘Install’
      6. Wait for the window to offer you the option to ‘Finish’, then choose this option.

      How do I change a download?

      PDFs cannot be changed. If you need to be able to type into a downloaded document (for example, if we are offering a letter template that you need to put your name on) we will provide it as a Microsoft Word document rather than a PDF. You can then download it, type into it and save it to your computer.

      How do I print or save a download?

      Downloads will open on your computer in a new browser window.

      Inside this window (below all your web browser menus), there will be a toolbar with options for you to print or save the document.

      Close the browser window to return to the Age UK website.

      Can my screen reader read PDF downloads?

      We have made every effort to make our PDFs accessible to screen readers. Here is an overview of your accessibility options available in Acrobat Reader. Please ensure that you have downloaded the latest version of Acrobat Reader from the Adobe Reader website to ensure that they are included in your version of the programme.

      You can use Adobe Reader to read a PDF out loud with the following shortcut keys:

      • Read the document: Shift +Ctrl+Y
      • Read the open page only: Shift +Ctrl+V
      • Read to the end of the document: Shift+Ctrl+B
      • Pause: Shift+Ctrl+C
      • Stop Shift+Ctrl+E


      You can also convert a PDF into a web page by following these steps:

      • Copy the URL (web address) of the document (right-click on the link and select ‘Save target as’ or ‘Copy link’).
      • Open the Adobe online conversion tool in your browser and paste the URL into the URL box.
      • Tick the HTML box on the Format option and click ‘Convert’.


      You can convert a PDF document into a text file for use with other software and hardware such as Braille printers by opening the PDF and choosing ‘Save as text’ from the File menu.

      Age NI Advice:
      0808 808 7575
      Age NI staff

      Connect with us

      Talk with us and follow our messages, tweets, videos and photos.

      Useful websites

      Two people talking

      Tell us your story

      Share your first hand accounts of issues or problems that older people are experiencing in relation to public services.

      Share your story

      Close window
      Display options

      Set the appearance of this website so you can read it more easily

      Text size

      Background/foreground


      To see information relating to England, Scotland or Wales set your preference below: