Marriage Allowance

Dazed_and_C0nfused

sarahTT said:

Not clear about this marriage allowance thing: So far I have "given" my husband a part of my personal allowance, 10% I think. I will probably start with a new part-time job in a few weeks' time. My job income will be around 11000 quid pa and I have another 2500 quid bank interest but no other income. My salary income will be below the full personal allowance and also below my currently reduced allowance. For the interest I can use the £1000 and £5000 savings rates, I think.

So I'm not paying any tax?
And if that's true can I still give hubby the 10% of my allowance? If not, I will probably have to tell HMRC and cancel?
Many thanks!

You will not pay any tax even with a reduced Personal Allowance of £11,310.

Your earnings will be covered by your Personal Allowance.

The rest of that will be used by the first £310 of interest.

The remaining interest will all be taxed at 0% (the savings starter rate).  You cannot use the £1,000 savings nil rate band (aka Personal Savings Allowance) as you don't have enough income to need it.

Key thing is once HMRC know about this new job is to make sure their estimate of how much you will earn (the £11,000) is accurate. You can update this on your Personal Tax Account.

polymaff

sarahTT said:

Not clear about this marriage allowance thing: So far I have "given" my husband a part of my personal allowance, 10% I think. I will probably start with a new part-time job in a few weeks' time. My job income will be around 11000 quid pa and I have another 2500 quid bank interest but no other income. My salary income will be below the full personal allowance and also below my currently reduced allowance. For the interest I can use the £1000 and £5000 savings rates, I think.

So I'm not paying any tax?
And if that's true can I still give hubby the 10% of my allowance? If not, I will probably have to tell HMRC and cancel?
Many thanks!

If you don't activate MAT your tax-free earnings and savings income can be up to £18,570

If you do activate MAT your tax-free earnings and savings income can be up to £17,310

So, no tax on the data you've provided - MAT or not.

sarahTT

OK guys, understood and sounds good. Re what Dazed&C wrote... didn't know that I can update that myself. The job's very flexible so I can always make sure I'll end up around the 11000 mark as income. And I will make sure that HMRC know that!

And thank you all for the clarification!