Marriage Allowance

polymaff

For reference, here's the link. It's slightly different from the text I posted as I've tried to embed all of the subsequent updates to the legislation that legislation.gov never seems to get up to date with.

http://www.legislation.gov.uk/ukpga/2007/3/section/56

Incidentally, it is those who are not UK-resident for tax purpose but do qualify for MAT who can only elect for a MAT if their taxable income is no more than their personal allowance - ARE YOU LISTENING, HMRC????

polymaff

LizzyBennett wrote: »

Can anyone tell me if it is possible for an (amicably) separated couple to claim this allowance, or do the married couple have to be cohabiting?
I know it's not in the spirit of the allowance to award it to people who aren't living together, but are there rules regarding this particular circumstance?
TIA for any info

I know of a case where a non-amicable couple have temporarily ceased their warfare in order to sign up for MAT.

Consumerist wrote: »

As far as I am aware, marriage or civil partnership are the only relational qualifications for Marriage Allowance.

And that only has to be for one day in the year under consideration.

Deewok

Afternoon some help would be appreciated.


In 2016 my wife, who was earning less than £6,500 at the time, transferred her £1,150 allowance to me as I earned £27,000 at the time so all good... no problems.


My wife started a new job recently and her wage increased to £11,397. She just received her 1st wage slip and had been taxed and couldn't understand why. After phoning HMRC she was advised that she has been taxed slightly as I had £1,150 of her personal allowance. (we completely forgot about this when she got her new job?


Now my question is would it make sense for me to transfer the £1,150 back to her for the period 2018/19 or just leave it as it is, or will it make no difference at all?


We would both be treated as 20% rate taxpayers so unsure if our overall income would be affected either way.


Any assistance would be greatly appreciated.


Thanks




Gary

polymaff

Deewok wrote: »

In 2016 my wife, who was earning less than £6,500 at the time, transferred her £1,150 allowance to me as I earned £27,000 at the time so all good... no problems.

My wife started a new job recently and her wage increased to £11,397. She just received her 1st wage slip and had been taxed and couldn't understand why. After phoning HMRC she was advised that she has been taxed slightly as I had £1,150 of her personal allowance. (we completely forgot about this when she got her new job?

Now my question is would it make sense for me to transfer the £1,150 back to her for the period 2018/19 or just leave it as it is, or will it make no difference at all?

We would both be treated as 20% rate taxpayers so unsure if our overall income would be affected either way.

You might as well leave it. Between the two of you, you won't lose by leaving it in place. You'll have received a £x credit and your wife will pay between 0 and £x more in tax.

What might be interesting would be how you would end up if you BOTH elected for MAT - particularly if you have substantial dividend income.

What a tangled web HMRC have woven with MAT

molerat

2018-19 will give £11[STRIKE]85[/STRIKE]90 to you and as she earns less than £11850 you will still be around £9[STRIKE]3[/STRIKE]4 better off as a couple.

Deewok

Many Thanks

Deewok

molerat wrote: »

2018-19 will give £1185 to you and as she earns less than £11850 you will still be around £93 better off as a couple.

I forgot that the thresholds increased again in April 18. So it makes no sense moving it then as the difference in her wage and the new threshold is now even greater?

polymaff

Deewok wrote: »

I forgot that the thresholds increased again in April 18. So it makes no sense moving it then as the difference in her wage and the new threshold is now even greater?

This is a red herring. After all, the wife's wages might also rise.

My advice stands - rises in thresholds - or wages - notwithstanding.

Dazed_and_confused

molerat

2018-19 will give £1185 to you and as she earns less than £11850 you will still be around £93 better off as a couple.

According to gov.uk it is £1190 next year, not £1185

https://www.gov.uk/government/publications/autumn-budget-2017-overview-of-tax-legislation-and-rates-ootlar/annex-a-rates-and-allowances

molerat

Dazed_and_confused wrote: »

molerat

2018-19 will give £1185 to you and as she earns less than £11850 you will still be around £[STRIKE]93[/STRIKE]94 better off as a couple.

According to gov.uk it is £1190 next year, not £1185

https://www.gov.uk/government/publications/autumn-budget-2017-overview-of-tax-legislation-and-rates-ootlar/annex-a-rates-and-allowances

An extra £1 better off then