Married tax allowance and pensions

sunrise27_2

I'm only 54 but starting to think about cutting down hours and planning our retirement
Our plan is to take our state pension and private pensions at 67 but still work a couple of days a week. Maybe just 4 hours a day both to supplement our incone and to keep our brains active.
My question is at the moment I use some of my personal tax allowance ( i think its £12500 ? ) to give to my husband as I'm a low earner. Is this something you can still do at retirement age ?

xylophone

Is this something you can still do at retirement age ?

Yes, if you are eligible.

https://www.gov.uk/marriage-allowance

Michael_Waterfield

My only taxable income is my work pension and I pay tax. My Wife has a small work pension and her state pension and she should not be paying tax. Revenue say that she has some more taxable income and that this takes them above the tax threshold but this is not true. We wrote to say that this income did not exist and asked them
1. To say where they thought this income came from or amend their records. This they have ignored
2 . If they agreed she had income below the tax threshold transfer the balance of her personal allowance to me under the marriage allowance. They appear to say the threshold for doing this is not the personal allowance but 10% less eg for 2018/19 not £11850 but £10660. Even on our calculations her income is above this. Is this correct?

xylophone

They appear to say the threshold for doing this is not the personal allowance but 10% less eg for 2018/19 not £11850 but £10660. Even on our calculations her income is above this. Is this correct?

https://www.litrg.org.uk/tax-guides/tax-basics/how-do-i-claim-tax-back/how-do-i-claim-marriage-allowance-refund

The marriage allowance allows an individual to transfer 10% of their personal allowance (£12,500 in 2019/20 so the amount transferred is £1,250) to their spouse or civil partner. 20% of this allowance is then given as a reduction in the recipient’s tax bill. This can result in anything up to a £250 tax saving for the couple.

There are various criteria to be met. You can find more information about the marriage allowance on our website.

https://www.litrg.org.uk/tax-guides/other-tax-issues/savings-and-tax

xylophone

My Wife has a small work pension and her state pension and she should not be paying tax. Revenue say that she has some more taxable income and that this takes them above the tax threshold but this is not true. We wrote to say that this income did not exist and asked them
1. To say where they thought this income came from or amend their records.

https://www.litrg.org.uk/tax-guides/tax-basics/how-do-i-work-out-my-tax

It is not impossible that HMRC have made a mistake. Calculate your wife's total taxable income.

Has she tried telephoning HMRC to discuss the matter? She should make sure that she has her NI number and all the figures to hand.