Unemployed since 2012 - Tax Payments

guysl80

Hi,


My wife resigned from her job in 2012 August and ever since been unemployed to become a full time housewife.
2013 she received some overpaid tax money from HMRC as we updated the HMRC about her quitting the job sometime back later.

She has not corresponded with HMRC since 2013. Have we done anything wrong? Do we need to update HMRC every year about her employment status. Have we missed any tax payments to HMRC?

Thank you

p00hsticks

guysl80 wrote: »

Hi,


My wife resigned from her job in 2012 August and ever since been unemployed to become a full time housewife.
2013 she received some overpaid tax money from HMRC as we updated the HMRC about her quitting the job sometime back later.

She has not corresponded with HMRC since 2013. Have we done anything wrong? Do we need to update HMRC every year about her employment status. Have we missed any tax payments to HMRC?

Thank you

No, you don't need to let HMRC know. The rebate in 2013 will have been because she left work halfway through the 2012-2013 tax year. In subsequent years as she's had no income then she'll neither need to pay or be owed any tax.

There are a couple of things that you might want to think about though.

Firstly, if you are a basic rate tax payer, then your wife could make use of the new marriage allowance to transfer some of her unused tax allowance to you, which would save you over £200 in tax.
https://www.gov.uk/marriage-allowance-guide/overview

Also, you need to consider your wife's NI record, which could affect how much State Pension she's entitled to in the future. Assuming she doesn't reach retirement age until after 6/4/16 then she'll need 35 years contributions to get a full pension. You don't mention children - she'll get credited with contributions if she's receiving child benefit for a child under 12 or carers allowance, or there are ways you can make voluntary payments to build up her record.

guysl80

Hi,

Thanks for the quick response.

1) I have two jobs. Am i still eligible for the marriage allowance? I did register for the marriage allowance and waiting for a confirmation.

2) We currently have one child. Not receiving any benefits except for the child benefit.

Cheers