MSE News: Couples now able to register to shift tax allowance between spouses

Tessey51

I do not currently work but have 2 pensions from previous employers and I will start to recive my State Pension this May.
My wife does not work and has not worked for the last 20 years, she receives no pensions or any other income. She has never applied for or received any State Benifits.
Can my wife apply for this allowance?
Thanks

p00hsticks

Tessey51 wrote: »

I do not currently work but have 2 pensions from previous employers and I will start to recive my State Pension this May.
My wife does not work and has not worked for the last 20 years, she receives no pensions or any other income. She has never applied for or received any State Benifits.
Can my wife apply for this allowance?
Thanks

Yes she can - although with no benefits, pensions or P60s from work, unless she has an interest bearing bank account in her name she may struggle to get past the online verification of her identity, so may have to call up HMRC rather than apply online.

https://www.gov.uk/marriage-allowance

Shiver

Hi. When applying for this can you select how much allowance you transfer rather than taking the full 10% (£1060)? We are both retired and my wife has circa £550 'spare' allowance this FY. I'd like to transfer say £500 ensuring she continues to pay no tax. Any info appreciated. Cheers - S


Edit: Just found answer to own question; "You can’t transfer more or less than £1,060." here: https://www.gov.uk/marriage-allowance-guide . Cheers - S

sheramber

Shiver wrote: »

Hi. When applying for this can you select how much allowance you transfer rather than taking the full 10% (£1060)? We are both retired and my wife has circa £550 'spare' allowance this FY. I'd like to transfer say £500 ensuring she continues to pay no tax. Any info appreciated. Cheers - S


Edit: Just found answer to own question; "You can’t transfer more or less than £1,060." here: https://www.gov.uk/marriage-allowance-guide . Cheers - S

No, it's a fixed amount.

You will pay less tax but your wife will start to pay some due to her reduced allowance.

girllikeme1

Hi
Can someone tell me please if the earnings threshold is your taxable pay as opposed to gross pay?

This year I will have earnt less than the £10,600 as taxable pay. My February payslip is showing gross pay for year to date as £9,900 and taxable pay as £8,600. I assuming the difference is my pension deductions by salary sacrifice.

I have transferred the MA to my husband because I expected to earn less than the threshold this year. I just want to know if it's based on my taxable pay?

Thanks in advance...

Darksparkle

girllikeme1 wrote: »

Hi
Can someone tell me please if the earnings threshold is your taxable pay as opposed to gross pay?

This year I will have earnt less than the £10,600 as taxable pay. My February payslip is showing gross pay for year to date as £9,900 and taxable pay as £8,600. I assuming the difference is my pension deductions by salary sacrifice.

I have transferred the MA to my husband because I expected to earn less than the threshold this year. I just want to know if it's based on my taxable pay?

Thanks in advance...

I would assume taxable pay as that is what tax is based on however cannot find a link to confirm. Ask HMRC to clarify.

mosnel

I did as you advised, I went online filled in the form to transfer my tax allowance to my husband, it was INSTANT !!! so easy, the following day an email from HMRC to confirm that my husband now gets my allowance.
Then a letter from HMRC to my husband to confirm his new Tax Code.
and today his private pension advice arrived,

no tax paid and a rebate of £8.20 that's a saving of £212 !!!!!!!

Thankyou MSE

mintypeas

can anyone help!! i transfered some of my allowance to my husband and received a letter this morning from hmrc well here goes:
april 2015/april 2016
personal allowance £10600
transfer of allowance £1060
total tax free amount£11660

this i understand now next bit im confused!!
april 2016/april 2017

personal allowance £1004
transfer of allowance £1100
total tax free amount £2104

also his tax code has gone from 1166m x to 210t

can anyone help me understand such a massive loss.

Darksparkle

mintypeas wrote: »

can anyone help!! i transfered some of my allowance to my husband and received a letter this morning from hmrc well here goes:
april 2015/april 2016
personal allowance £10600
transfer of allowance £1060
total tax free amount£11660

this i understand now next bit im confused!!
april 2016/april 2017

personal allowance £1004
transfer of allowance £1100
total tax free amount £2104

also his tax code has gone from 1166m x to 210t

can anyone help me understand such a massive loss.

Personal allowance from April should £11,000 so you'd need to ask them why his isn't.

mintypeas

its extremely weird as it is a big difference. his annual is £29120 so cant work it out should i not of transferred my allowance?