Widow's Benefits

Because your widow's benefits take up most of your tax allowances, if you do earn any extra money you will find that your employer will have to tax most of it at the standard rate of 89 p in the £. If you earn more than £81 a week and you are under sixty, you will have to pay National Insurance contributions as well. Once you reach sixty, you do not have to pay National Insurance.

You should check to make sure you do not pay any contributions on any payday after your sixtieth birthday.

If you receive a pension from your husband's old employer, it will normally have tax at 89 p in the £ taken off it before you get it. You may be able to claim some of this tax back if you have no other income.

The calculations about how much tax you pay as a widow can be complicated. Even the Inland Revenue may make mistakes from time to time.

So you should fill in a tax return each year to make sure you have paid the right amount of tax. Ask for one from your tax office.

In the past, little more than patriotism has attracted people to National Savings. But today National Savings is competing hard for your money. For most people there is a worthwhile investment package waiting.

New sections added - Tax Free Interest

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Tax Free Interest

/retirement/pensions/income/advice/tax-free-interest.php... see: Tax Free Interest