State pension tax complicated

30.03.08 Why do people over 65 and born after 1935 have a low tax code ie 200- 300 yet
anyone under 65 or born before 1935 have a code of 500-600. I pay tax on everything over £40 odd pound a week yet if I was in the higher tax code bracket I could earn over £100 pound a week before tax. It seems so unfair when on a low income.

Doreen doesn't mention that her few savings, probably came from income that has already been taxed when she earned it. Now the savings interest to be declared as another source of income, may have had 20% taken off it by a building society, for example. But if the rate of inflation is not much less than the interest paid by the building society, the actual income is effectively negligible or much less than the 20% tax paid assumes its value to be. Almost all the benefit of investing it in a savings account goes to the Tax Collectors. I suppose, for those with spare cash, this is a good incentive to spend your money while you can, hopefully on something that significantly increases in value. Then, just wait for the Tax Collectors to pounce when you die! It would be much simpler in Tax returns if they could accept that the 'pound of flesh' has already been paid in the case of pensioners, who generally would like to pass on their savings intact, to their own choice of beneficiary.

The main thing wrong with self assessment tax is the stupid tax form they give you to fill out. The boxes on it simply do not match up with the tax documentation you are given, like the P60 and P11d etc.. So what should take literally 2 minutes takes hours. And the language used on the form is something from outer space.

And then what you can claim for is not explained properly. Well that's what they want. They don't want you to claim for anything nowadays.

Any kind of tax is complicated these days. I wish that they would make tax matters and in particular self assessment a lot clearer.

Actually tax has become easier in recent years. It's simple. You will pay tax on everything you earn. There are no real special allowances any more, no rebates, no mortgage discounts: nothing.

The only way you can avoid tax is by not declaring your income, very difficult to do with a State Pension.

You're even supposed to collect and pay the income tax of a house cleaner or home help you might "employ" part-time, even if only for a couple of hours every other week. I bet you didn't realise that. The Government is trying to close in on the Black Economy.

The real crooks live in tax havens, like the Channel Islands. These tax havens should closed down. If the money was earned in this country, paid in this country. pay up.

Now you're pensioned you have all the time in the world to read that book on Self-Assessment which none of us who are still employed ever have had.

As an oldie you probably will be able to summon the assistance of institutions like "Help the Aged" or the "Citizens Advice Bureau", or whatever charity supports your particular affliction.

Get the House of Lords or any elderly member of it on your side. They can pursue individual cases. In the next 20 years oldies will become the majority electors: goverments beware of upsetting them.

Become an "expert" in oldie's tax: sell your services to others. You will make a nice income from this.