Marriage Allowance

Alcopops

Hi. Can I claim this if my wife is Polish and doesn't work in UK, but has a job in Poland. She doesn't earn more than £8000 per year. She pays her tax in Poland. I'm taking my standard state pension and have resided in uk since birth. We have a property in England and I'm paying my council tax.
.

Consumerist

Alcopops wrote: »

Hi. Can I claim this if my wife is Polish and doesn't work in UK, but has a job in Poland. She doesn't earn more than £8000 per year. She pays her tax in Poland. I'm taking my standard state pension and have resided in uk since birth. We have a property in England and I'm paying my council tax.
.

If your wife has a UK National Insurance Number (i.e. has a Personal Allowance as a UK taxpayer) then your wife can claim Marriage Allowance - assuming you would like her to transfer some of her personal allowance to you.

See <HMRC> for more details.

Marje66

Hi,
it may seem a daft question, but not to me.
Can I claim the marriage tax allowance even though seperated from my husband? I didn't even know it existed until recently?

Consumerist

Marje66 wrote: »

Hi,
it may seem a daft question, but not to me.
Can I claim the marriage tax allowance even though seperated from my husband? I didn't even know it existed until recently?

In a word (well, three), yes you can.

polymaff

Marje66 wrote: »

Hi,
it may seem a daft question, but not to me.
Can I claim the marriage tax allowance even though seperated from my husband? I didn't even know it existed until recently?

You can - but you may then have to pay more tax and you certainly won't pay less. Only your husband will benefit.

Biggus_Dickus

My wife has a part time PAYE job that pays approx £8k p.a.

However, she has savings that generate interest of approx £7k p.a.

As her PAYE income is well below her personal tax allowance (£11850) can she (as the lower earner) claim the marriage tax allowance, which would effectively reduce my personal tax code?

My income is in excess of £11850.

All advice gratefully received.

Consumerist

Biggus_Dickus wrote: »

My wife has a part time PAYE job that pays approx £8k p.a.
However, she has savings that generate interest of approx £7k p.a.
As her PAYE income is well below her personal tax allowance (£11850) can she (as the lower earner) claim the marriage tax allowance, which would effectively reduce my personal tax code?
My income is in excess of £11850.
All advice gratefully received.

It might be helpful if you have a look at a <MoneyFacts> article to see if your wife's claim of Marriage Allowance might lead her to pay more tax and whether you would benefit more than your wife might lose.

Dazed_and_confused

Assuming you have disclosed all of her taxable income she is eligible to apply for it and will lose £1,190 (but usually 10%) of her Personal Allowance as a result.

So in the current tax year her tax position would be,

Total income £15,000
Less reduced PA £10,660
Income liable to tax £4,340
£4,340 x 0% (savings starter rate of tax) = £0.00

She has a bit of spare savings starter rate available and hasn't even got to the point of being able to use the savings nil rate of tax (aka the Personal Savings Allowance).

You however would get a higher tax code not a lower one. Unless it starts with a K the higher the tax code the less tax is paid. Receiving Marriage Allowance will entitle you to have £238 credit knocked off your tax bill in the current tax year.

It doesn't it entitle you to an extra £1,190 in Personal Allowances (although that is broadly how HMRC show it in your tax to make sure you get the benefit during the tax year and don't have to wait until the end of the year).

polymaff

Biggus_Dickus wrote: »

My wife has a part time PAYE job that pays approx £8k p.a., she has savings that generate interest of approx £7k p.a.

As her PAYE income is well below her personal tax allowance (£11850) can she (as the lower earner) claim the marriage tax allowance, which would effectively reduce my personal tax code?

My income is in excess of £11850.

Providing your wife is classified as a UK tax-payer, her eligibility for the MAT has nothing to do with the Personal Allowance - or what particular mix of income she has. The only financial bar to her eligibility would be if she was already, or would be as a result of electing for the MAT, classed as a higher-rate taxpayer. With the income you describe she will still owe zero tax after electing for the MAT.

Your own ability to partake in MAT is not a function of your Personal Allowance. You will only be barred if you are classed as a higher-rate taxpayer.

The only part played by the Personal Allowance is to determine the amount by which the couple will benefit from the MAT.

polymaff

Biggus_Dickus wrote: »

. . . which would effectively reduce my personal tax code?

Take care to use the correct terminology. As the potential beneficiary of the MAT you will receive a credit to your tax account. It may well be that HMRC will eventually process that credit via an adjustment of your PAYE Tax Code.


A big mistake many MAT beneficiaries make is to believe that their Personal Allowance will increase as a result of MAT. It doesn't - indeed no aspect of you Assessment to Income Tax is affected by MAT; and that includes the Personal Allowance.