Claiming the wifes personall allowance

MINKATHECAT

WELL I LOOKED ON THE SITE AND THIS YEAR WIFE GETS IN HER OAP AND ANNUITY PENSION LESS THAN THE 11500 FOR THIS YEAR. I LOOKED ON THE GOV WEB SITE DID THE CALCULATION HEY WE CAN GET 92 POUND PER YEAR BETTER OFF TRANSFERING HER ALLOWANCE TO ME.
But when i phone up the tax people you have to have the wife after her allowances of 11500 under a threshold left which is 10350.00 pound or you cant claim it.
So is the calculator wrong on the web site because when you put the wifes fig in and mine it says 92 pound can transfer so if your wife earns more in her pensions of 10350.00 you cant get it
Can anyone on money saving expert explain this why she has to have less than 10% of the 11500 allowance to get it.

Darksparkle

The personal allowance is currently £11,000. The marriage allowance would reduce her personal allowance to £9,900.

How much is her pension?

xylophone

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

http://www.moneysavingexpert.com/family/marriage-tax-allowance

MINKATHECAT

all pensions 10521=00 so for this year she has this taken off 11500 but they say its got to be 10% left which is 10350=00 so she is above this so cant get it. Go on their tax calculator and is says can get 92 pounds passed to me in savings so is their tax calculator on the government web sit not taking into account this minimum 10%

Darksparkle

MINKATHECAT wrote: »

all pensions 10521=00 so for this year she has this taken off 11500 but they say its got to be 10% left which is 10350=00 so she is above this so cant get it. Go on their tax calculator and is says can get 92 pounds passed to me in savings so is their tax calculator on the government web sit not taking into account this minimum 10%

The personal allowance is £11,000. With the 10% removed the personal allowance reduces to £9,900. So she'd pay tax on the remaining £621 so tax due of £124.20. You'd save £220 so the overal saving is £95.80

sheramber

You can only transfer 10% so you pay less tax but she pays tax to make up the difference between what you gat and what you are due to get.

As a couple you save money.

MINKATHECAT

you can only transfer up to 10% max my question is she could transfer less to me and not pay tax like the gov calculator put my fig in and try it you can put any ammount in for me still comes out the sam but the tax allowance for this year is 11500 so its better still.

sheramber

MINKATHECAT wrote: »

you can only transfer up to 10% max my question is she could transfer less to me and not pay tax like the gov calculator put my fig in and try it you can put any ammount in for me still comes out the sam but the tax allowance for this year is 11500 so its better still.

No, you cannot transfer less than 10%.

rockingbilly

It is no wonder that only 40% of those eligible to transfer the allowance have actually bothered to claim it. It is only worth just over £4 a week, not even the price of 10 ciggies!!!

Darksparkle

MINKATHECAT wrote: »

you can only transfer up to 10% max my question is she could transfer less to me and not pay tax like the gov calculator put my fig in and try it you can put any ammount in for me still comes out the sam but the tax allowance for this year is 11500 so its better still.

The tax allowance is £11,000 as I said. Perhaps you are thinking of next tax year.

teddysmum

The OP says his wife is approaching pension age, so I assume this will be in the next tax year, so an allowance of £11500 does apply.


OP, as has been said you donate 10% or nothing. This will make your allowance £12650 and your wife's £10350, so the total between you is still £23000 (2x£11000).


You will pay £230 less tax, but she will have to pay tax on any income (except from savings) that is above the £10350, so the overall saving will be less than £230.


She and not you must apply and you must not be a higher rate tax payer. (It will not be worth doing if your pre-tax income is less than £12650,as you would be donated an allowance that you don't use, but your wife would pay extra tax as her allowance has dropped.)


From your mention of £92 (saved ; not transferred?) I calculate that your wife's income will be about £11040,which makes her eligible to transfer for the next tax year, but would not this tax year. You have used the pension rates for April 2017 onwards, haven't you ?