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  • FIRST POST
    • MSE Sam M
    • By MSE Sam M 2nd Jun 15, 4:39 PM
    • 234Posts
    • 158Thanks
    MSE Sam M
    Marriage Allowance
    • #1
    • 2nd Jun 15, 4:39 PM
    Marriage Allowance 2nd Jun 15 at 4:39 PM
    Hi!

    This is the discussion thread for the



    Click reply below to discuss. If you haven’t already, join the forum to reply. If you aren’t sure how it all works, read our New to Forum? Intro Guide.


    Thanks folks ,
Page 43
    • xylophone
    • By xylophone 9th Mar 17, 8:45 PM
    • 22,006 Posts
    • 12,692 Thanks
    xylophone
    So can we claim the marriage allowance?
    It would appear so.

    See below.



    https://www.ifs.org.uk/publications/6869

    [I]Since the transferred personal allowance would not be available to higher rate taxpayers, workers benefiting from a transferred allowance would have a weaker incentive to increase their taxable income above £42,285 (or a stronger incentive to make more pension contributions or charitable donations, which can be deductible from taxable income, to remain in the basic rate band).

    http://www.taxadvisermagazine.com/article/marriage-allowance

    The transferring partner must not have income taxable higher than the basic rate after the transfer of allowances; the recipient partner, meanwhile, must not be liable at a rate higher than the basic rate before the transfer of allowances. Bear in mind that gift aid donations and some pension contributions, for example, may increase the amount of income chargeable at the basic rate.


    https://ion.icaew.com/taxfaculty/b/weblog/posts/the-mechanics-of-the-marriage-allowance?Redirected=true
    • Dazed and confused
    • By Dazed and confused 9th Mar 17, 9:50 PM
    • 1,482 Posts
    • 621 Thanks
    Dazed and confused
    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?
    • teuchter66
    • By teuchter66 9th Mar 17, 11:23 PM
    • 7 Posts
    • 2 Thanks
    teuchter66
    Are you under 75? Had you considered contributing to a SIPP? A pensioner relative pays £2880 a year into an HL SIPP - he doesn't bother with taking the PCLS as at the moment he regards the SIPP as a potential inheritance for another family member.
    Originally posted by xylophone

    Just about to hit 75 - I've been paying the de minimis £2880 into my SIPP but that stops when I reach 75.


    Like your relative I'll take the remaining PCLS at 75 and leave the remainder to my grandchildren in my case (It becomes taxable at age 75 so some may get it tax-free)
    • teuchter66
    • By teuchter66 9th Mar 17, 11:32 PM
    • 7 Posts
    • 2 Thanks
    teuchter66
    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?
    Originally posted by soup22

    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.
    Last edited by teuchter66; 10-03-2017 at 10:21 PM. Reason: Miscalculation of Dates
    • sheramber
    • By sheramber 10th Mar 17, 1:24 PM
    • 3,371 Posts
    • 2,557 Thanks
    sheramber
    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 2014/15.
    Originally posted by teuchter66
    The transfer of Marriage Allowance only started 2015/16 so not available for 2014/15
    • polymaff
    • By polymaff 10th Mar 17, 4:51 PM
    • 1,592 Posts
    • 678 Thanks
    polymaff
    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?
    Originally posted by soup22
    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,"
    • provilo
    • By provilo 10th Mar 17, 5:19 PM
    • 8 Posts
    • 2 Thanks
    provilo
    Wife does not work
    Is it any use claiming Marriage Allowance if my wife does not work?
    • Dazed and confused
    • By Dazed and confused 10th Mar 17, 5:31 PM
    • 1,482 Posts
    • 621 Thanks
    Dazed and confused
    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
    • By therightpath 17th Mar 17, 6:21 PM
    • 5 Posts
    • 0 Thanks
    therightpath
    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
    • Consumerist
    • By Consumerist 17th Mar 17, 7:15 PM
    • 4,580 Posts
    • 2,256 Thanks
    Consumerist
    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
    Originally posted by therightpath
    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.
    Warning: In the kingdom of the blind, the one-eyed man is king.
    • teddysmum
    • By teddysmum 17th Mar 17, 7:29 PM
    • 7,879 Posts
    • 4,697 Thanks
    teddysmum
    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.
    Originally posted by Consumerist

    You can only count up to £5000 of savings interest, if the total with income goes over the personal allowance. ( eg the system wouldn't allow £ 6000 of interest and £6000 or earnings )


    There was a similar case to yours, last year, when the lady posted about herself being allowed to transfer her allowance but her husband having to pay back his saving. She had more than £5000 of savings interest, though an otherwise low income.
    Last edited by teddysmum; 17-03-2017 at 7:32 PM.
    • therightpath
    • By therightpath 17th Mar 17, 7:29 PM
    • 5 Posts
    • 0 Thanks
    therightpath
    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.
    Originally posted by Consumerist
    Set up an account on Hmrc to check my details not my wife's yet

    It says I paid too little for 2015/16 but I know it for the check I received in December
    My tax code on my payslip for this year says s1100L but on Hmrc it's S1210m to account for the marriage allowance which I m not receiving
    In April it should be 1250M to account for the marriage allowance but down to 1159M to repay the 212.
    • polymaff
    • By polymaff 18th Mar 17, 9:01 AM
    • 1,592 Posts
    • 678 Thanks
    polymaff
    You can only count up to £5000 of savings interest, if the total with income goes over the personal allowance. ( eg the system wouldn't allow £ 6000 of interest and £6000 or earnings )
    Originally posted by teddysmum
    Not so ...

    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,"
    • evosy1978
    • By evosy1978 18th Mar 17, 8:28 PM
    • 570 Posts
    • 60 Thanks
    evosy1978
    Hi

    We are due to get married next month.

    My partner is employed and earns £7500 p/a and Im self employed with profit of £22000

    would we benefit from applying for the MA?

    I've been reading the posts and I'm confused as to if its a good idea or not?

    Thanks
    • Dazed and confused
    • By Dazed and confused 18th Mar 17, 8:46 PM
    • 1,482 Posts
    • 621 Thanks
    Dazed and confused
    If your partners total taxable income is just the £7500 you have mentioned then after you are married you should benefit if he were to apply for marriage allowance.

    As you are self employed it would take quite some time for you to see the benefit - when you submit your 2017:18 self assessment return in January 2019 you would get £230 knocked off your tax bill.

    This assumes your marriage is on 6 April or later and you are making enough profit to pay that much tax in 2017:18
    • teddysmum
    • By teddysmum 19th Mar 17, 8:48 PM
    • 7,879 Posts
    • 4,697 Thanks
    teddysmum
    Not so ...

    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,"
    Originally posted by polymaff
    That's what I was told by two HMRC staff. I'd called about another matter but the lady mentioned above was posting about her problem, at the time, so I asked the question.

    However, looking back to posts around #600 ,Stardust, the lady who had the problem, had an update from HMRC, saying that they had fixed the glitch which meant that, wrongly, the savings interest over £5000 could not be separated and made tax free as part of her unused PA.


    For some reason, I didn't return to the thread until ages after, so missed her update.
    Last edited by teddysmum; 19-03-2017 at 9:32 PM.
    • polymaff
    • By polymaff 20th Mar 17, 9:10 AM
    • 1,592 Posts
    • 678 Thanks
    polymaff
    HMRC - "power without responsibility — the prerogative of the harlot throughout the ages." Stanley Baldwin, 1931
    • evosy1978
    • By evosy1978 20th Mar 17, 9:34 AM
    • 570 Posts
    • 60 Thanks
    evosy1978
    If your partners total taxable income is just the £7500 you have mentioned then after you are married you should benefit if he were to apply for marriage allowance.

    As you are self employed it would take quite some time for you to see the benefit - when you submit your 2017:18 self assessment return in January 2019 you would get £230 knocked off your tax bill.

    This assumes your marriage is on 6 April or later and you are making enough profit to pay that much tax in 2017:18
    Originally posted by Dazed and confused
    How much can we earn before we're not eligible for the rebate. She earns about 7/8 thousand every year. My profit is about 22/25 every year....
    • polymaff
    • By polymaff 20th Mar 17, 10:16 AM
    • 1,592 Posts
    • 678 Thanks
    polymaff
    The legislation states that the condition is that:

    For a UK-resident donor:

    "assuming the individual's personal allowance was reduced as set out in section 55B(6), the individual would not for that year be liable to tax at a rate other than the basic rate, the dividend ordinary rate or the starting rate for savings"

    For a UK-resident recipient:

    "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,"

    There are other issues, but the above is a general guide, extracted directly from the legislation.
    • badmemory
    • By badmemory 21st Mar 17, 8:07 PM
    • 508 Posts
    • 505 Thanks
    badmemory
    HMRC - "power without responsibility — the prerogative of the harlot throughout the ages." Stanley Baldwin, 1931
    Originally posted by polymaff
    The thanks button is just not enough - surely eventually SOMEONE will hold them responsible for - well if nothing else at least some of the mis-information.
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