Married Tax Allowance Q

TrushTush

We applied for this previously when I was working part time and not using my full allowance, we have since moved and I am now working full time. My tax code hasn't yet been updated at my new job to show the correct code so I need to ring and either get my tax code put to the lower code or get them to take off the marriage allowance from both of us.

I have read the guide by Martin on here but cannot work out if I am better off leaving it or not? I'm earning about 14.5k a year before tax and my husband around 37k approx.

Anyone able to decipher what's best to do?

Thank you in advance!
-Tush

sheramber

As you now earn over the limit you should call HMRC and cancel the transfer of the allowance , which will take effect after the end of the tax year.

https://www.gov.uk/marriage-allowance/if-your-circumstances-change

TrushTush

Okay, thank you. When reading the guide it said that sometimes you are still slightly better off (albeit not by much) keeping it the way it is. But I couldn't understand the scenario. I'll assume from your reply that I shouldn't hang around!

Thanks again

Darksparkle

TrushTush wrote: »

Okay, thank you. When reading the guide it said that sometimes you are still slightly better off (albeit not by much) keeping it the way it is. But I couldn't understand the scenario. I'll assume from your reply that I shouldn't hang around!

Thanks again

It's only worthwhile where on of you earns £11,000 or less.

Scenario where better off -

You earn £10,500 he earns £20,000. You pay no tax, he pays £1,800

Transfer of marriage allowance

You pay £120, he pays £1580. So saving of £100.

Dazed_and_confused

sheramber wrote: »

As you now earn over the limit you should call HMRC and cancel the transfer of the allowance , which will take effect after the end of the tax year.

https://www.gov.uk/marriage-allowance/if-your-circumstances-change

Seems to be important for the lower earner to do this as otherwise the allowance would be removed for last year as well :eek:

"The date the allowance ends depends on who cancels it.

If you stop transferring the allowance to your partner, it will run until the end of the tax year (5 April).

If your partner asks to stop receiving your allowance, HMRC will backdate the change to the start of the tax year you first started transferring it."

TrushTush

Dazed_and_confused wrote: »

Seems to be important for the lower earner to do this as otherwise the allowance would be removed for last year as well :eek:

"The date the allowance ends depends on who cancels it.

If you stop transferring the allowance to your partner, it will run until the end of the tax year (5 April).

If your partner asks to stop receiving your allowance, HMRC will backdate the change to the start of the tax year you first started transferring it."

Oh crumbs, it's such a minefield! I do all the admin for us as a couple so it's always me who does these things