Marriage Allowance

Consumerist

alewin wrote: »

If someone only received their National Insurance number in February of this year (2018-19 tax year), then can they only apply for Marriage Allowance from this tax year onwards (2019-20). Which is the first full year with a National Insurance number?
Would it be possible to back date it to the start of the 2018-19 tax even though they did not have a National Insurance number in April, at the start of the tax year but did have one at some point in the year?

I think the rule is: if you qualify at any time during a tax year then you qualify for the entire tax year.

Jime1952

It looks as if my wife is now paying tax on the combination of her State and occupational pensions. As I claim part of her tax free allowance, are we better off with her paying the tax or me no longer claiming the allowance?

Consumerist

Jime1952 wrote: »

It looks as if my wife is now paying tax on the combination of her State and occupational pensions. As I claim part of her tax free allowance, are we better off with her paying the tax or me no longer claiming the allowance?

Not necessarily. Best thing would probably be to see whether your wife's loss is as much as your gain in each tax year.

In principle, subject to tax-code rounding errors, it should make no difference collectively.

Greeneyes364

Can I claim this while I am on maternity?

polymaff

Greeneyes364 wrote: »

Can I claim this while I am on maternity?

Maternity is irrelevant to MAT. The only important issue for UK tax payers is whether either of the two of you are - or would be as a result of electing for MAT - classed as higher-rate tax-payers.

polymaff

Jime1952 wrote: »

It looks as if my wife is now paying tax on the combination of her State and occupational pensions. As I claim part of her tax free allowance, are we better off with her paying the tax or me no longer claiming the allowance?

Due to HMRC's barmy implementation of the MAT legislation it is just about impossible for the two parties involved to lose by electing for MAT

zagfles

polymaff wrote: »

Due to HMRC's barmy implementation of the MAT legislation it is just about impossible for the two parties involved to lose by electing for MAT

If the beneficiary would otherwise have paid at least the MAT transfer value of Income Tax (£238 in 2018/19), then scratch that "just about".

What if doner has earned income of the PA or a bit above and savings income of £6000+?

AIUI that would mean the PA loss from the MAT transfer would result in extra tax on both the earned income plus loss of the starting savings band, ie double the loss that the beneficiary would gain. Or have I missed something?

Also what if both earned exactly the HRT threshold? ie aren't HRT payers, therefore eligible for the MAT, yet the transfer would cause the doner to pay HRT. Or would they be ineligible?

polymaff

1. This is just one of several circumstances which can - indeed - result in basic rate tax-payers paying a marginal rate of 40%..


2 I addressed that issue in post #1476, above. The donor (not the kebab) can end up being classified as higher-rate by electing for MAT - so no MAT.

njb55rtd

Can I just confirm that if I have pension income of £50000 plus savings income of £500 this year, I am still able to receive MA from OH? (As per previous years).

It would mean that I would be technically in the higher tax banding but I would not be paying higher tax and therefore eligible?

Dazed_and_confused

Where are you expecting to be resident for tax purposes in 2019:20?

Do you expect to receive any dividend income at all in 2019:20?