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

zygurat789

Jonah01 wrote: »

I'm not sure it is as straight forward as that

During the year I pay 40% tax.

But once I've done my self assessment my 40% tax is zero.

It might become more obvious once we can all apply.

The tax deducted PAYE is on account of your final liability. It is only when your final income and allowances are known that your income liable for tax and therefore your tax rates can be ascertained. If you do not pay tax at 40% on your tax return then you do not pay tax at 40%

Jonah01

Thanks. So is this something that I'll be able to claim on my tax return rather than them altering my tax code

I think someone on here has completed the application so will be interesting to know what the process was.

molerat

http://www.thisismoney.co.uk/money/news/article-3059844/Fears-tax-email-HMRC-WASN-T-scam.html

zygurat789

Jonah01 wrote: »

Thanks. So is this something that I'll be able to claim on my tax return rather than them altering my tax code

I think someone on here has completed the application so will be interesting to know what the process was.

PAYE should always be regarded as "on account" the actual liability and any over or under payment being determined by a tax return.
Many taxpayers have relatively simple tax affairs and the PAYE deductions will equal the final liability so long as the tax code is correct.
A tax return will always supercede PAYE.

Onawingandaprayer

I accept that the HMRC are working their way through people, but they're taking their time...

Anybody else had the email a couple of months back saying they'll be among the first to register and heard nowt?

banjobob59

Onawingandaprayer wrote: »

I accept that the HMRC are working their way through people, but they're taking their time...

Anybody else had the email a couple of months back saying they'll be among the first to register and heard nowt?

Same here. I must be one of the ' first ' still waiting like a lot of other ' firsts '

FOREVER21

banjobob59 wrote: »

Same here. I must be one of the ' first ' still waiting like a lot of other ' firsts '

Me too, perhaps it's a case of "The first shall be last! "

50Twuncle

FOREVER21 wrote: »

Me too, perhaps it's a case of "The first shall be last! "

Same here - I registered on the first day that they announced it and have heard absolutely nothing !!

teddysmum

I'm not in a panic to transfer my allowance to my husband, as everything will have caught up by next April, provided that the allowance is transferred before then.


Something did occur to me this morning:


Suppose one spouse transferred allowance to the other, but the receiver died before earning enough to cover just their own allowance. Would the donor be able to claim the allowance back, as they may need if inheriting some of the deceased person's pension ?


If the answer is a negative, then transferring near the end of a tax year would be a safer bet, as most of the allowance would have been used.

zygurat789

teddysmum wrote: »

I'm not in a panic to transfer my allowance to my husband, as everything will have caught up by next April, provided that the allowance is transferred before then.


Something did occur to me this morning:


Suppose one spouse transferred allowance to the other, but the receiver died before earning enough to cover just their own allowance. Would the donor be able to claim the allowance back, as they may need if inheriting some of the deceased person's pension ?


If the answer is a negative, then transferring near the end of a tax year would be a safer bet, as most of the allowance would have been used.

http://www.taxvol.org.uk/about-tax/taxation-bereavement/

Quote:-


The full marriage allowance is available in the year of death. If it is the transferor who has died the transferors tax is calculated using the reduced allowance and the recipients tax code is adjusted in the year following the death. If the recipient dies both benefit from their full allowance.