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The amount you are taxed can be affected by your age in that personal tax allowances increase as you get older.

In 2011-12 the tax allowance for people less than 65 years of age is £7,475, meaning that you can earn up to this amount before you need to start paying tax.

However providing earnings are below £24,000, the allowance increases to £9,940 for those aged between 65-74, and £10,090 for people aged 75 and over. For those aged 65+ and earning over £24,000 the personal allowance will decrease by £1 for every £2 of income above £24,000.

For example, if Helen is 67 years old and earns £24,500, her earnings exceed the £24,000 age allowance income limit by £500. Therefore her personal tax allowance will be £250 less bringing it down to £9,690.

If you are unsure about anything explained here or would like a quotation please do not hesitate to phone or email us, or alternatively, you can simply use the live chat link available.

About The Author

Lee Murphy

MAAT and ICPA accountant, with a passion for making accountancy and bookkeeping accessible. Other interests include cloud-based software development for web and mobile access, keeping fit, reading, and entrepreneurship.

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