How can I pay less tax?

janeyred

I just come into the higher income tax band, only just. My husband however, having been made redundant at aged 50 has struggled to find a job, and has just found a low paid job. Can I somehow transfer some of my pay to him, so that I fall below the higher rate tax band, as it seems hard that i pay additional tax when he hardly earns anything.

healy

janeyred wrote: »

I just come into the higher income tax band, only just. My husband however, having been made redundant at aged 50 has struggled to find a job, and has just found a low paid job. Can I somehow transfer some of my pay to him, so that I fall below the higher rate tax band, as it seems hard that i pay additional tax when he hardly earns anything.

No everyone is taxed as an individual so there is nothing you can do about it.

[Deleted User]

janeyred wrote: »

I just come into the higher income tax band, only just. My husband however, having been made redundant at aged 50 has struggled to find a job, and has just found a low paid job. Can I somehow transfer some of my pay to him, so that I fall below the higher rate tax band, as it seems hard that i pay additional tax when he hardly earns anything.

You only pay the higher rate on the amount above the threshold,if I were you I`d consider myself lucky to be earning so much at a time when its needed and not trying to get out of paying your share.On my reckoning if your husband is working full time you have a joint gross income approaching £48,000

sleepless_saver

You could use some of your income to buy a stakeholder pension for him to improve his post retirement income, and I think that attracts valuable tax relief. At the same time it willput you below the higher rate threshhold (though as woodbine has pointed out, if you're only just above the threshhold you're not going to be paying much at 40%).

LizzieS_2

sleepless_saver wrote: »

You could use some of your income to buy a stakeholder pension for him to improve his post retirement income, and I think that attracts valuable tax relief.

Where did you get that from? Just curious.

The only alternative not mentioned is to take a job that puts you back in the 20% tax bracket.

Oldernotwiser

I think that you might be better posting this on the Cutting Tax Board, where I'm sure you'll find more knowledge than on here.

alwaysonthego_2

Board Guide Comment

Thanks ONW, will move thread so you get better response.

sleepless_saver

LizzieS wrote: »

Where did you get that from? Just curious.

Mentioned in a lot of pension guides. Here's one - not very good, but best I can find quickly. You can contribute up to £3600 a year into a pension for yourself or for someone else e.g. children, partner etc. That immediately gets another 20% added on to the sum as tax relief, plus the higher rate payer can then reclaim the difference between the 20% and 40% rate as part of annual self assessment.

John_Pierpoint

If you have got savings make sure they are invested in something that does not attract tax.
ISA's - National Savings (some) etc.
Put your husband's name on your savings accounts, so half the interest becomes his.
(you can always hang on to the paperwork if you are worried about what he might do with his share and make it "both must sign").

Ste_C

janeyred wrote: »

it seems hard that i pay additional tax when he hardly earns anything.

Why? I pay more tax than my next door neighbour who is on a low income. What's the difference?

trevormax

as long as you trust him not to run off with the milk/post woman (:p) transfer all of your savings into his name. If you have any shares which get dividends transfer them into his name also.