Transferring tax relief to partner

elantan

Hi all,

not sure if this is of any interest to anyone, I wont be earning anywhere near the tax threshold next year so have opted to transfer 10% of my tax allowance to my partner, phoned the tax office and was told to go to

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

on this page you put your name and email address in, they will contact you in up to 14 weeks and you can then apply properly, any money due will be back dated so you wont loose any money,

It may only be £212 a year, but for us that can mean the difference between paying our gas and electricity for two months of the year or not, so i will be applying,

Hope it helps some people

good luck

vacheron

Thanks for the link.

We're going to exchange some of my wife's allowance to me this year but thought we'd have to wait until April to register.

elantan

Apparently we have been able to do it since Feb 20th, i phoned several times but only today found out, it will take a while to happen but atleast now i know i have done my bit, will need to chase up though no doubt,

good luck

molerat

There was an MSE News post about registering 3 weeks ago https://forums.moneysavingexpert.com/discussion/5180792
All it means at the moment is that you are registering your interest in being contacted when the scheme is up and running so that you can apply, nothing to get too excited about yet.

elantan

it isnt ... but if you were not aware of it ( like i wasnt) then it is a start

vacheron

hmmmm, just noticed a potential catch-22 with this one.

The original HMRC website said you were eligible if you were a basic rate taxpayer, however the link you posted now says that

• your spouse or civil partner has an annual income of between £10,601 and £42,385

I was planning on salary sacrificing to just below £43,435 (£42,385 + £1,050 transfer allowance) so by the end of 2015-16 I would still be a basic rate taxpayer but would have earned more than the £42,385 stated on their website. :undecided

Some clarification needed here first I think.

elantan

Hope you get it it wont affect us as my husband earns less than the 40% threshold so hopefully we will be ok, I predict i will earn approx £7-8 k next year ( if i am lucky)

sheramber

You need to be a basic rate tp before the transfer of the allowance so you would need to increase your salary sacrifice to take your taxable income to
no more than £42385.

vacheron

sheramber wrote: »

You need to be a basic rate tp before the transfer of the allowance so you would need to increase your salary sacrifice to take your taxable income to
no more than £42385.

Yes, that's what I intended to do, but my train of thought was:

• Set Salary sacrifice to show a gross of less than £42385
• Apply for the spouse transfer as a basic rate taxpayer.
• Receive an extra £1050 personal allowance which raises the higher rate threshold to £43435.
• Adjust my salary sacrifice to just below £43435.
• I remain eligible as I am still not a high rate taxpayer.

However the fact that the website now specifically states an income of less than £42385 appears to have blown my damn fine plan out of the water!

zygurat789

vacheron wrote: »

Yes, that's what I intended to do, but my train of thought was:

• Set Salary sacrifice to show a gross of less than £42385
• Apply for the spouse transfer as a basic rate taxpayer.
• Receive an extra £1050 personal allowance which raises the higher rate threshold to £43435.
• Adjust my salary sacrifice to just below £43435.
• I remain eligible as I am still not a high rate taxpayer.

However the fact that the website now specifically states an income of less than £42385 appears to have blown my damn fine plan out of the water!

There is a great deal of confusion caused by the politicians and the civil servants.
The politicians say "paying tax at no more than the basic rate" and the civil servants say "no more than £42,385"
Either could be right, but not both. We will know on wednesday who has the egg on their faces.

zygurat789

Here is the link saying basic rate tax. It just goes to show that .Gov are just totally inco,petant

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