Unlock partners tax allowance or reduce amount payable?

System

The basic inconsistency in the UK personal finance regime is that taxation is assessed on individuals, but benefits on family and households.

When it was introduced everybody seemed to think individual taxation was a good thing. This is one of the consequences.

purdyoaten

Clifford_Pope wrote: »

The basic inconsistency in the UK personal finance regime is that taxation is assessed on individuals, but benefits on family and households.

When it was introduced everybody seemed to think individual taxation was a good thing. This is one of the consequences.

Yes - but now they have further confused the issue with both the child benefit clawback and the introduction of the proposed transferrable allowances next year where a spouse's income is relevant.

zygurat789

purdyoaten wrote: »

Yes - but now they have further confused the issue with both the child benefit clawback and the introduction of the proposed transferrable allowances next year where a spouse's income is relevant.

Didn't they promise to simplify taxation?

zagfles

Clifford_Pope wrote: »

The basic inconsistency in the UK personal finance regime is that taxation is assessed on individuals, but benefits on family and households.

Exactly. Had the OP's partner been a single parent, she'd be able to claim income support (assuming one of the kids is under 5). But because she's co-habiting and her partner earns a reasonable wage, the govt say "your partner can support you".

Fair enough, but then they have the hypocrisy to also say "oh, and you can't use your personal tax allowance against the income we expect you to live on".

When it was introduced everybody seemed to think individual taxation was a good thing. This is one of the consequences.

Well in the past there was the married couples' allowance, additional personal allowance, childrens' tax allowances, unlike today, where is no recognition of partners or children in the income tax system at all. I don't think the current system is how most people envisaged "individual taxation".

Spidernick

zygurat789 wrote: »

Didn't they promise to simplify taxation?

They all say that and then do the opposite. The classic case is Capital Gains Tax which can be an absolute minefield these days for assets owned a long time.

I'll never forget a quote from a tax consultant years ago who said: 'I love it when governments 'simplify' taxation - it gives me so much work to do!'

wearside_2

Your_Hero wrote: »

Not currently. But from April 2015, it is proposed that married couples can transfer 10% of the personal allowance (around £1,000 in 2014/15 terms) to the spouse/civil partner provided that they are not higher rate or additional rate tax payers.

Does anyone have any idea if this has to be claimed, given automatically or what? Knowing HMRC they require more than three moths to implement the change!

purdyoaten

wearside wrote: »

Does anyone have any idea if this has to be claimed, given automatically or what? Knowing HMRC they require more than three moths to implement the change!

I have heard nothing as yet as to the implementation of this.

Perhaps the moths are still at pupa stage?

zygurat789

wearside wrote: »

Does anyone have any idea if this has to be claimed, given automatically or what? Knowing HMRC they require more than three moths to implement the change!

It will obviously have to be claimed, in writing because
HMRC do not know if you have a spouse or at what rate the said spouse pays tax or even that the taxpayer(s) want to do this.

sheramber

According to https://www.gov.uk/government/publications/transferable-tax-allowances-for-married-couples-and-civil-partners

it will an online claim.

noh

It will most likely be claimed using an online process.
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/293790/TIIN_2518_transferable_tax_allowance_for_married_couples_and_civil_partners.pdf