Does giving up guaranteed income ever make sense?

Dazed_and_confused

You cannot have a Personal Allowance of £13,750.

Receiving Marriage Allowance allows you a tax deduction off your overall tax bill. In the current tax year this saves you £250 (£1,250 x 20%).

Doesn't make any difference to most people but it makes a huge difference to some.

sunnyjim1234

Dazed_and_confused wrote: »

You cannot have a Personal Allowance of £13,750.

Receiving Marriage Allowance allows you a tax deduction off your overall tax bill. In the current tax year this saves you £250 (£1,250 x 20%).

Doesn't make any difference to most people but it makes a huge difference to some.

Ok, pardon my ignorance, what I should have said is that marriage allowance gives me the tax code 1375M, which to my simple mind means I can earn £13750 tax free, which as you say is a saving of £250 over the basic £12500 allowance. Not life changing I agree, but better in my pocket than the tax man's:)

sunnyjim1234

Dazed_and_confused wrote: »

Doesn't make any difference to most people but it makes a huge difference to some.

Ah! I get what you are saying now.

From the Money Advice Service:-


If you’re eligible, married couples and civil partners, but not unmarried couples, can transfer 10% of their Personal Allowance (£1,250 in 2019/20) to their partner. This means the partner who earns more will get £1,250 added to their Personal Allowance (the amount you can earn before having to pay tax on your income).

20% of this allowance is given as a reduction in your tax bill (unlike the Personal Allowance which is deducted from your taxable income before tax is worked out).

Many Thanks