Calculating Tax

jonsbird

Hi,

Can anyone tell me how the Tax calculations work please....IE.

I have used the on line calculator that Martin recommends for my husband as a married man over 75.

On his income it looks like he doesn't need to be paying tax as his pension isn't enough to be doing so,

So my real query is does he have to add my income in his calculations.

I am only on a basic married woman's state pension.

If this has to be added to my husbands pensions for tax purposes then he will be needing to pay tax.

Does that make sense

JB

Savvy_Sue

AFAIK, married people have been taxed separately for years now, and I don't think it changes in old age ...

If you have any JOINT accounts or JOINT investments on which you get interest, then half needs to be declared on each return.

But not your pensions or other individual forms of income.

colbee

Presumably he has been sent a tax return? If so, the return can be completed online. It takes a few days to get your User ID from HMRC (which you apply for online) then you fill in the relevant information and at the end of the online process it tells you how much tax you owe or have overpaid.

margaretclare

No, you both have a tax liability/tax allowances. I was one of those people who lobbied over many years for women's independent taxation and it took effect from the 1990 Budget.

Here are the tax allowances:
http://www.hmrc.gov.uk/pensioners/allowances.htm

In our age-band 65-74 we both get personal allowance of £7550 plus £2440 married couple's allowance (MCA) - that's half each of the MCA because we split it between us. So a total of £9990 income each before we need to pay any tax.

It's often beneficial to transfer any savings etc to your name, if you're the partner who pays less tax.

HTH

Margaret