Marriage Allowance

Silverbird65

Hubby pays normal tax rate. What is starter rate?

Dazed_and_C0nfused

There is a tax band just for savings interest where upto £5,000 of interest which isn't covered by your Personal Allowance is taxed at 0%.

If you apply for Marriage Allowance then your Personal Allowance will be reduced to £11,250.

Your total taxable income is more than this but as the surplus is interest and only a small amount it gets taxed at 0%.

Silverbird65

Ok so what about if I try they will then change my tax code as my pensions are just covered by my allces according to tax dwp?

Dazed_and_C0nfused

If you apply now then based on what you have said so far your tax code will be reduced to 118N.

Personally though I would wait until the tax year has finished and apply then so it doesn't involve a change to your tax code.

Your spouse would then get any refund due sometime in the summer.

Silverbird65

Which will mean I will pay tax

Dazed_and_C0nfused

No, tax code 118N means the first £1189 of your private/company pension will be paid without tax being deducted.

tax Yr 1919/20 my pension 0ap was £8350 co Pension £1188 savings int 2700 thats it 

veryintrigued

Any news on the 20/21 levels now the budget is out?

Dazed_and_C0nfused

Nothing has changed regarding Personal Allowance and tax rates that I could see

polymaff

veryintrigued said:

Any news on the 20/21 levels now the budget is out?

If you mean PA, same as 19/20, £12,500 - then increasing by CPI.

Silverbird65

What about previous years then? Or us that too complicated would the dwp help me out by looking at my status in last 4 years?