Tax question

sunrise27_2

Hubby got his P60 for the tax year to 2019
He earnt £44.390.33
And paid £7816.40 in tax
I was waiting for this to come in to decide whether we could apply for marriage allowance ( where I can transfer some of my personal allowance to him )
Up until September 2018 he had a company car but now has a car allowance.
We have been accepted for marriage allowance for 2019/ 2020 and was hoping to backdate it for 2018/ 2019 but they're saying he was a higher tax psyer last year ? What were the allowances last year. From April 2018 - August 2018 he had a company car if that makes any difference ?

Pennywise

A quick google search shows it as £46,350. Yes, car benefits do could. So if his car benefits in kind are £1,960 or more, he'll have been a higher rate taxpayer for 18/19. Unless the car was ultra low emission, I can't imagine the BIK value being less than £1,960. Ergo, transfer of marriage allowance would not be possible.

polymaff

£7816 in tax would be 20% on just over £39k - which doesn't fit the other figures.

So, on your data, some of that was higher-rate, I'm afraid.

unholyangel

Easy way to tell if someone was a higher rate earner....if they earned more than the tax paid under basic rate band. For 18-19 that would be £6900 (34,500 x 20%).

£7816.40 likely means an adjusted net income of £48650.

Has he checked his P11d values against that HMRC hold? Did he inform them he had switched the car to an allowance at the time he did it? Does he have any tax relief he can claim which could potentially lower his tax liability back into basic rate?