Tax and Carers allowance

nad1611

Just a quick question. My husband and I were just looking over our tax etc on the Goverment Gateway HMRC site and noticed that the Carers Allowance which he receives for me, hasn't been included on his breakdown.


I get an NHS Pension and ESA (both of which are included on my breakdown)

He gets an NHS Pension (included) and Carers Allowance (not included)



We also transferred the married person's allowance of 1250 from him to me.


I know you can send details of missing incomes via the website but I just thought I'd check if this is an oversight or other. Thanks for any help.

Dazed_and_confused

It is your husband's responsibility to tell HMRC about Carers Allowance. DWP don't to this.

Will the combination of NHS pension, Carers Allowance and reduced Personal Allowance make your husband liable to tax?

nad1611

Ok. Probably my error because my ESA has always been included I rather stupidly presumed the same would happen with CA.

Actually it would have been fine if he hadn’t transferred the married allowance because with that transfer to me it does mean he’s over his allowance threshold.

So we’d best alert them to the fact immediately. Thanks.

nad1611

Probably going to come across as a bit dense here but I thought I'd check the income against allowances so we can contact HMRC with some numbers etc. I used a couple of the online calculators but they both show no tax due, which confuses me, so if I put some numbers in here could someone verify that for me? I'd really appreciate it,thanks.



E.g. 2017/18


Tax Code 1035N


Income £11289.36


Obviously no pension or N.I contributions.

Dazed_and_confused

There isnt enough information to be certain but let's go with the following assumptions,

Personal Allowance is £10,350 (tax code of 1035N probably means that but isn't guaranteed).

All the "income" is taxable and it doesn't include any interest or dividends.

In which case the tax due would be

£11,289 less £10,350 = £939

£939 x 20% = £187.80

NB. This means it was probably still worth your spouse applying for Marriage Allowance i.e. you probably saved £230 so overall, as a couple, you are £42.80 better off in 2017:18 than if he hadn't applied.

nad1611

Thansk a lot. Yes all the income is taxable. Going by what you have said about the Marriage Allowance transfer, it will definitely need to be cancelled now though.


I guess paper letters are still the usual way of alerting HMRC to an increase in income ie Carers allowance?

Dazed_and_confused

Cancelling Marriage Allowance would depend on the taxable income he expects to receive.

Pension income and carers allowance may have increased but so has the Personal Allowance.

And don't forget if some of the taxable income is interest or dividends then it may well be taxable at 0%.

It is quite possible for someone to apply for Marriage Allowance and have taxable income of £19,250 in the current tax year and not have any tax to actually pay. The trick is having the right type of taxable income.