Marriage Allowance

Consumerist

polymaff wrote: »

No, if you qualify to be a MAT recipient, you receive a fixed, £220, payment. Can we stop spreading this suggestion that the income tax assessment of such a recipient is altered at all by being a MAT recipient?

And what is the tax relief on £1,100 if it is not £220 for a basic-rate taxpayer?

What on earth do you mean by "income tax assessment"?

Semantics doesn't help much.

teuchter66

That'll be the end of my Marriage Allowance then.
Happily benefitted for the past two year thanks to my wife transferring 10% of her PA to myself - would have been £1150 at 20% for 2017/18.


However the annual increase in the state pension has pushed me over the £43k threshold by £7 so that'll be it gone for this year..


Thanks Nicola, my loss and not even your gain, you'll have to send it down to Westminster to help with all these new claimants earning £43k to £45k.

polymaff

Consumerist wrote: »

And what is the tax relief on £1,100 if it is not £220 for a basic-rate taxpayer?

Nothing wrong with your arithmetic but. it is certainly not a "tax relief on an extra £1,100 of earnings"

Consumerist wrote: »

What on earth do you mean by "income tax assessment"?

You mean that you don't know the answer to this?

Not your finest hour, Consumerist.

polymaff

teuchter66 wrote: »

That'll be the end of my Marriage Allowance then.
Happily benefitted for the past two year thanks to my wife transferring 10% of her PA to myself - would have been £1150 at 20% for 2017/18.


However the annual increase in the state pension has pushed me over the £43k threshold by £7 so that'll be it gone for this year..


Thanks Nicola, my loss and not even your gain, you'll have to send it down to Westminster to help with all these new claimants earning £43k to £45k.

Make a qualifying Charitable Contribution asap

Consumerist

polymaff wrote: »

Nothing wrong with your arithmetic but. it is certainly not a "tax relief on an extra £1,100 of earnings" . . .

The point I was trying to make is that although Mr K would receive a rebate the equivalent of tax relief on £1,100 of earnings, Mrs K would likely have to pay more tax because her allowance would be reduced. (I trust this more closely meets your exacting, indeed, nit-picking standards)

No wonder people are confused by MA when word smiths, such as yourself, come along and take pot-shots at people's efforts to explain things and add nothing constructive to the discussion. In the latter regard this might be your finest hour to confuse the issue.

xylophone

However the annual increase in the state pension has pushed me over the £43k threshold by £7 so that'll be it gone for this year..

Are you under 75? Had you considered contributing to a SIPP? A pensioner relative pays £2880 a year into an HL SIPP - he doesn't bother with taking the PCLS as at the moment he regards the SIPP as a potential inheritance for another family member.

polymaff

Consumerist wrote: »

The point I was trying to make is that although Mr K would receive a rebate the equivalent of tax relief on £1,100 of earnings

You seem to be missing the point.

As for your abusive bluster - it shames and diminishes you.

Consumerist

polymaff wrote: »

You seem to be missing the point.

That's largely because you're not making one.

soup22

My husband earns about £44500 a year. However he pays into a share option which reduces his taxable salary to around £41000. He also pays a pension which reduces his taxable salary further to around £37500 making him a 20% tax payer We wanted to claim the marriage allowance as I am a non tax payer. However on the HMRC webite it states you can claim this if you earn less than £43000 but on the Gov website it says you can claim this if you are a £20% tax payer. This is confusing as my husband is a 20% tax payer but he also earns more than £43000. So can we claim the marriage allowance?

xylophone

So can we claim the marriage allowance?

It would appear so.

See below.



https://www.ifs.org.uk/publications/6869

Since the transferred personal allowance would not be available to higher rate taxpayers, workers benefiting from a transferred allowance would have a weaker incentive to increase their taxable income above £42,285 (or a stronger incentive to make more pension contributions or charitable donations, which can be deductible from taxable income, to remain in the basic rate band).

http://www.taxadvisermagazine.com/article/marriage-allowance

The transferring partner must not have income taxable higher than the basic rate after the transfer of allowances; the recipient partner, meanwhile, must not be liable at a rate higher than the basic rate before the transfer of allowances. Bear in mind that gift aid donations and some pension contributions, for example, may increase the amount of income chargeable at the basic rate.


https://ion.icaew.com/taxfaculty/b/weblog/posts/the-mechanics-of-the-marriage-allowance?Redirected=true