If you are over 65, you should check you are getting the correct personal allowance. The allowance for the 2009/10 tax year is £6,475, but if you were aged 65 to 74 on April 5 2009 it is increased to £9,490. If you were aged 75 or over on April 5 2008 the tax-free allowance stands at £9,640.
This extra allowance can be reduced if a pensioner’s earnings are relatively high. The personal allowance falls by £1 for every £2 earned above £22,900, although the personal allowance cannot be cut below the normal level of £6,475.
