Marriage Allowance

NannaLyn

Saw Martin's program a couple of weeks ago about transferring personal tax allowance to a spouse. My income is just my OAP plus a little savings interest.
Did this transfer last week on-line. Took about 5 minutes. You just need your NI number and that of the person to whom you are transferring. My husband received a written confirmation about a week later.
Easy peasy!

kwt

I have just sorted ours online. Took 2 minutes and good to get something back as a couple with no kids.

LuckyPenny

My DH gets ESA and an insurance payment. Does the insurance payment count as income towards the £10,600?

Darksparkle

LuckyPenny wrote: »

My DH gets ESA and an insurance payment. Does the insurance payment count as income towards the £10,600?

Is it taxable?

p00hsticks

LuckyPenny wrote: »

My DH gets ESA and an insurance payment. Does the insurance payment count as income towards the £10,600?

is it contribution based or income related ESA ? The former counts as taxable income, the latter is tax free

https://www.gov.uk/income-tax/taxfree-and-taxable-state-benefits

NannyGr45

Hi, After reading Martins advice about claiming Marriage Allowance 2 weeks ago I clicked on his link and applied that same day. By tea time I got a reply from HMGov to say that I did qualify and that they would get in touch soon. 3 days later my husband received 2 new tax forms, 1 told him that he would be getting a tax rebate in his next pay (month 11) of £114 + the £80 which he usually pays on his extra pension. He also won't pay any next month. The other letter was to let him know that his new Tax Code was reduced for next year. So it was all sorted within 3 days. A BIG thank you to Martin and his staff, without reading this I would not have applied because I thought it only applied if you were both working. We are both retired.

carlamarie_2

would anyone mind settling an argument between my mum and me please? we have both applied for this, but seem to be reading it differently.
we are both earn under £10,000.


I'm reading it as my husband (as the higher earner) will pay £212 less tax at the end of this month


my mum is reading it as she will get a cheque/rebate for £212 in her name, not her husbands (as the higher earner)


I'm pretty sure I'm right, but shes insistent she is!

Consumerist

carlamarie wrote: »

. . .I'm reading it as my husband (as the higher earner) will pay £212 less tax at the end of this month

You are correct.

In general, the allowance is "paid" via a change in tax code of both parties. The donor's tax code will be reduced by the same amount the recipient's code is increased (106 in this tax year) - all other things being equal.

carlamarie_2

thank you consumerist.

Littlejohn1984

My wife and I will be discharged from bankruptcy on 9th April 2016. She works part time and me full time. Will we have to wait until 9th April to transfer her allowance to mine and can we backdate to when the allowance started last year?