“To claim, the person receiving the extra personal allowance must be a basic-rate- 20 per cent- taxpayer at most. A little-known tip is that you can also backdate your claim for up to four tax years, if eligible. An alternative option, called the married couple’s allowance, is available for people born before April 6 1935.”
Young also pointed out it was useful for pensioners to know how they will pay any tax due.
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“If you’re one of those dragged into the tax net, with some smart planning you can make sure you’re keeping as much of your extra income as possible, rather than giving it to the taxman,” she added.
alina.khan@ft.com
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