Marriage Allowance

Agree with xylophone, if hubby is basic rate payer then there should be reason why you, as the lower earner, cannot apply.

You are probably overcomplicating things by not starting with his taxable salary (which should be shown on latest payslip), the other amounts are really irrelevant.

Just make sure that when you apply you do it for the correct year (s) applicable to your own circumstances.

And don't forget taxable salary isnt all that counts, you need to consider any other taxable income (benefits from his employer, dividends, savings interest etc) when establishing if he is a basic or higher rate payer?

soup22 wrote: »

My husband earns about £44500 a year. However he pays into a share option which reduces his taxable salary to around £41000. He also pays a pension which reduces his taxable salary further to around £37500 making him a 20% tax payer We wanted to claim the marriage allowance as I am a non tax payer. However on the HMRC webite it states you can claim this if you earn less than £43000 but on the Gov website it says you can claim this if you are a £20% tax payer. This is confusing as my husband is a 20% tax payer but he also earns more than £43000. So can we claim the marriage allowance?

I've successfully claimed the MA for the past two years by making a pension contribution to keep my taxable pay below £43000.


So go ahead and claim (you must claim as the non-taxpayer) and don't forget to get it back-dated to 2015/16.

soup22 wrote: »

My husband earns about £44500 a year. However he pays into a share option which reduces his taxable salary to around £41000. He also pays a pension which reduces his taxable salary further to around £37500 making him a 20% tax payer We wanted to claim the marriage allowance as I am a non tax payer. However on the HMRC webite it states you can claim this if you earn less than £43000 but on the Gov website it says you can claim this if you are a £20% tax payer. This is confusing as my husband is a 20% tax payer but he also earns more than £43000. So can we claim the marriage allowance?

The legislation states that the condition is that:

"the individual is not, for the tax year, liable to tax at a rate other than the basic rate, the dividend ordinary rate or the starting rate for savings,"

marriage allowance is about income, whether this comes from working is irrelevant.

What income does your wife have (you need to consider 2015:16, 2016:17 and 2017:18 separately as what might apply one year may not be relevant in others)

therightpath wrote: »

Looking for a bit of guidance

Applied for marriage allowance got cheque for 212 for 2015/16 in December wife earned 9463 that year
Still waiting for this year allowance on tax code change
Letter through today for next year code saying I have underpaid 212 in tax so I will get my personal allowance of 11500
Plus marriage allowance of 1150
Minus 1060 for the repayment

Does that mean I don't get any marriage allowance then and it only starts in April for 2017/18. My wife is eligible for the 220 this year too based on her earnings

You should check with HMRC that your wife qualified in 2015/16. It's possible that her total taxable income (including savings interest, etc.) exceeded the £10,600 limit.