Marriage Allowance

Consumerist

Burnley_Lad wrote: »

. . . How would I find out what mine is? I'm just trying to work out what my earnings after deductions will be from April 2016 onwards. Thanks.

Everybody's standard tax allowance for 2016/17 is £10,800 and your marriage allowance will be 10% of that i.e. £1,080 so that's a total of £11,880 to give a tax code of 1188.

It may be different if you have other tax to pay (e.g. Capital Gains Tax) but for most people the above is about right

Pdman

Allowance for 2016/17 is £11,000. Check gov.uk.

Consumerist

Pdman wrote: »

Allowance for 2016/17 is £11,000. Check gov.uk.

I think you'll find thats for 2017/18, isn't it?

Pdman

Unable to post link. Search rates and thresholds for employers 2016 to 2017 on gov.uk.

Consumerist

OK. Sorry Burnley_Lad, my mistake. Seems the allowance was changed in the second budget to £11,000 which was originally intended to be the 2017/18 allowance.

That being so, your Personal Allowance will be £11,000 plus the 10% transferred from the Marriage Allowance to give £12,100 and a tax code of 1210.

If you are receiving State Pension then your allowance on other income will be reduced by the amount of SP (tax is not deducted from SP).

Archies_Dad

Hi I am new to this forum having been advised by a friend to check that our situation is valid and that we are entitled to this marriage tax allowance transfer. If I may elaborate I am 74 and my wife is 70 and we are both in receipt of state pensions. I also receive a pension from my previous employer on which I pay income tax at 20%. My PAYE tax code is adjusted because of my state pension and my wife does not have a tax code simply because her pension in her own right is so small (£74 pw).
Is my friend correct in that we simply need to apply to HMRC for my wife to transfer some of her tax allowance to me so that my tax code will increase thereby reducing my tax bill? He continues by stating that the my wife's tax allowance transfer (and consequent rebate to me) is applicable to previous years as well. Is this true? Any comments would be welcome especially on the procedure to follow if we are eligible. Many thanks for taking time to reply. Archies Dad

p00hsticks

Archies_Dad wrote: »

Hi I am new to this forum having been advised by a friend to check that our situation is valid and that we are entitled to this marriage tax allowance transfer. If I may elaborate I am 74 and my wife is 70 and we are both in receipt of state pensions. I also receive a pension from my previous employer on which I pay income tax at 20%. My PAYE tax code is adjusted because of my state pension and my wife does not have a tax code simply because her pension in her own right is so small (£74 pw).
Is my friend correct in that we simply need to apply to HMRC for my wife to transfer some of her tax allowance to me so that my tax code will increase thereby reducing my tax bill? He continues by stating that the my wife's tax allowance transfer (and consequent rebate to me) is applicable to previous years as well. Is this true? Any comments would be welcome especially on the procedure to follow if we are eligible. Many thanks for taking time to reply. Archies Dad

Yes it is true - it's your wife that needs to apply, to say that she want's to transfer some (10%) of her allowance over to you - HMRC will then adjust both your tax codes so you pay less tax.

She can apply online here - as the page says she'll need to know both of your NI numbers and be able to provide some identifying information such as the last four digits of the bank account that her state pension get's paid into.

https://www.gov.uk/marriage-allowance?gclid=CL-AwM_J68oCFSblwgod1-UNxA

Consumerist

Archies_Dad wrote: »

. . . He continues by stating that the my wife's tax allowance transfer (and consequent rebate to me) is applicable to previous years as well. Is this true?

Unfortunately, this is not true.

If your wife applies for the transfer before 6 April 2016, however, it will apply for the entire 2015/16 tax year. i.e. it will be effectively back-dated to the beginning of this tax year. The transfer will continue to be applied in each future year until such time as your wife requests to cancel it. i.e. your wife will not need to re-apply each year.

borntoshop

Hi

I am a full time carer, with a carers allowance. Husband works full time, am I elligible to transfer my allowance to him (that is the correct way round I believe), or is carers allowance not part of it? I have read through and not seen it asked, thanks in advance.

Consumerist

borntoshop wrote: »

I am a full time carer, with a carers allowance. Husband works full time, am I elligible to transfer my allowance to him (that is the correct way round I believe), or is carers allowance not part of it? I have read through and not seen it asked, thanks in advance.

If you both have a National Insurance number and your husband is a basic-rate taxpayer then you can transfer 10% of your PAYE Persoanl Allowance to your husband.