Income <12K, Interest >12K

buyhighselllow

polymaff wrote: »

You should get it - that is what I meant by "arcane" - but I took your initial post at face value. Why not try?

Anyway, the main point of my post was to give you a concise, rigorous but simple guide to your savings issues. Did you get it?

I think so..I will drill down and nail it !:beer:

polymaff

buyhighselllow wrote: »

I think so..I will drill down and nail it !:beer:

Incidentally, I published that simple model of tax on savings, 2016/17, over a year ago on MSE. It still holds true, I believe, despite the torrent of contradictory garbage GOV.UK have released in the interim. Garbage which has been propagated in the media - and on MSE

buyhighselllow

polymaff wrote: »

Incidentally, I published that simple model of tax on savings, 2016/17, over a year ago on MSE. It still holds true, I believe, despite the torrent of contradictory garbage GOV.UK have released in the interim. Garbage which has been propagated in the media - and on MSE

Applied..! I think I may qualify for it this tax year, and possibly the previous one when I initially reduced my hours..we will see..

Dazed_and_confused

Assuming you mean your wife applied then did you make her aware that based on your op she may well get a tax demand for last year and start paying more tax this year.

Based on all the evidence on these boards it isn't an apply and HMRC check if you can benefit thing, it's apply and HMRC will adjust your taxes accordingly for each year applied for.

A couple both with total taxable income (this tax year) of £40,000 each are eligible to apply but they won't benefit as a couple. This doesn't prevent a successful application though.

Obviously basing this on your op which mentioned wife earning less than £12k. If her total income, including her taxable savings interest, was several thousands under this then less of an issue.

Dazed_and_confused

TheCyclingProgrammer

You're only obliged to notify HMRC if you are chargeable to tax, so if you're satisfied no tax is due, you have nothing further to do.

The funny thing is the op's wife is almost certainly "chargeable", it's just the tax rate she will be paying is 0%.

TheCyclingProgrammer

Dazed_and_confused wrote: »

TheCyclingProgrammer

You're only obliged to notify HMRC if you are chargeable to tax, so if you're satisfied no tax is due, you have nothing further to do.

The funny thing is the op's wife is almost certainly "chargeable", it's just the tax rate she will be paying is 0%.

You're splitting hairs a little - it makes no difference. You are not required to notify HMRC if no tax is due, even if you have income that is technically "chargeable" as detailed in the Taxes Management Act 1970 S7(3).

Penalties for failing to notify HMRC that you are chargeable to tax are based on a percentage of the tax owed and any percentage of zero is still zero.

Dazed_and_confused

Thanks for the explanation.

polymaff

Dazed_and_confused wrote: »

A couple both with total taxable income (this tax year) of £40,000 each are eligible to apply but they won't benefit as a couple.

Not so. There are situations where both tax-payers qualify for MAT and pay tax at basic rate where there will be a benefit from MAT. Think dividends.

buyhighselllow

Dazed_and_confused wrote: »

Assuming you mean your wife applied then did you make her aware that based on your op she may well get a tax demand for last year and start paying more tax this year.

Based on all the evidence on these boards it isn't an apply and HMRC check if you can benefit thing, it's apply and HMRC will adjust your taxes accordingly for each year applied for.

A couple both with total taxable income (this tax year) of £40,000 each are eligible to apply but they won't benefit as a couple. This doesn't prevent a successful application though.

Obviously basing this on your op which mentioned wife earning less than £12k. If her total income, including her taxable savings interest, was several thousands under this then less of an issue.

Don't really see what you are saying. She is employed PT and PAYE...which is nothing in her case.

Dazed_and_confused

I assume you mean she currently pays no PAYE tax but if she has applied for marriage allowance she looses 10% of her personal allowance which depending on her actual income might mean she needs to pay tax.

This would happen retrospectively for any years she applied for if it made her liable to tax at the basic rate.

So she could get a bill whilst you get a refund.