Married person's tax allowances

FayV

I currently earn under the threshold and have for the past few years been transferring my allowance to my husband. There is now a reorganizsation at work and my salary may well increase to £125.50 more than the current single persons tax allowance. My question is how quickly can I find out what the allowance will be from April 2019 so that I can see if I need to advise HMRC that we are no longer eligible. Also my husband is self employed and I am due to do his 2018/2019 tax return in April but I assume I would be better to do that before I advise HMRC of any increase in my salary as my pay before 6 April 2019 will be under the threshold

molerat

The personal allowance for 2019-20 is £12500

polymaff

FayV wrote: »

[1] I currently earn under the threshold and have for the past few years been transferring my allowance to my husband. There is now a reorganizsation at work and my salary may well increase to £125.50 more than the current single persons tax allowance. My question is how quickly can I find out what the allowance will be from April 2019 so that I can see if I need to advise HMRC that we are no longer eligible. [2] Also my husband is self employed and I am due to do his 2018/2019 tax return in April but I assume I would be better to do that before I advise HMRC of any increase in my salary as my pay before 6 April 2019 will be under the threshold

1. As far as UK Tax-payers are concerned, eligibility for the Marriage Allowance Transfer has nothing to do with the Personal Allowance at all. Providing they are formally married or in a formal civil partnership, UK taxpayers are eligible for MAT if they are not - or would not become as a result of electing for MAT - classified as higher rate tax-payers. The only relevance of the Personal Allowance to UK Tax-payers is how much they will benefit from MAT.

If the above seems to conflict with what you have heard or read elsewhere - the above is correct.


2. You and your husband are taxed individually, so the timing of your actions is up to you. Perhaps your questions need re-stating in the light of the above MAT explanation?