Marriage Allowance

Gemm83

Hi
Hoping someone can answer this as can't seem to find it!

Ordinarily my DH and I would not qualify for Marriage Allowance however I am now on SMP and was wondering whether we do now?

I'm thinking probably no, but thought I would ask!

TIA ☺️

comeandgo

You would have to wait until 5 th April and if your wages plus maternity pay at month 12 is less than 12,500 then yes, you can give some of your tax allowance to your husband.

Dazed_and_confused

if your wages plus maternity pay at month 12 is less than 12,500 then yes, you can give some of your tax allowance to your husband.

Actually if your wages plus maternity pay were less than £50,000 you can usually give some of your allowance to your husband. But in most cases you wouldn't be any better off (as a couple).

Don't forget that if your taxable income from wages/maternity pay is between £11,250 and £12,500 you will end up with a tax bill although overall as a couple you may well be better off.

For example say your taxable pay/maternity was £12,000, you had no other taxable income and applied for Marriage Allowance then you would get a tax bill for £150 (£12,000 less Personal Allowance £11,250 = £750 taxed at 20% = £150).

Your husband would be entitled to a tax deduction of £250 so if pays enough tax you will be £100 better off as a couple.

comeandgo

Thank you Dazed. You are correct. I went to a seminar last month and was told as long as lower earner under tax threshold, even to the extent of 12,499, full marriage allowance given. Wonder what other information given was incorrect.

Leon78

Hi hoping someone could help.

My wife and I applied for marriage tax allowance after seeing an advert. When we entered some figures into the fields the site said we could be looking at up to £900. We posted the form with our info. My wife is the lower earner as she is on a zero hours contract and thought this would of been a good idea to help us out. Today we had a massive shock as my wife checked her wage and found out that she had been taxed £400 which left her with £600. She doesn't earn enough to pay tax so we were confused to why. We rang the tax office up but they didn't really tell her why they taxed her so much and said hopefully it will right it self. They also said he changed back her tax code. At Christmas this is a massive kick in the teeth. I thought this marriage allowance was to help and not to take so much away from us.

Kind regards
Leon

Dazed_and_confused

My wife and I applied for marriage tax allowance

You can't both apply, which of you actually applied?

we could be looking at up to £900

You have misunderstood. Anyone who applies for Marriage Allowance can only ever pay the same or more tax. The person receiving Marriage Allowance can pay less tax, upto £250 less in the current tax year.

She doesn't earn enough to pay tax so we were confused to why.

Can you post the details from her payslip before tax started being deducted? Ignore any National Insurance info.

I thought this marriage allowance was to help and not to take so much away from us

It does. Providing you understand what you are doing and the right person applies in the right circumstances.