Self employed on CIS scheme using AIA

[Deleted User]

Jeremy535897 said:

Dazed_and_C0nfused said:

Marriage Allowance for the recipient is a tax credit of £250 though, not an additional tax free allowance like the Personal Allowance is.

In this example what difference does it make?

It doesn’t  - just in the methodology. Remember the ‘total income method?’ 😊

Jeremy535897

purdyoaten2 said:

Jeremy535897 said:

Dazed_and_C0nfused said:

Marriage Allowance for the recipient is a tax credit of £250 though, not an additional tax free allowance like the Personal Allowance is.

In this example what difference does it make?

It doesn’t  - just in the methodology. Remember the ‘total income method?’ 😊

I saw no point in complicating things for the sake of technical purity!

[Deleted User]

Jeremy535897 said:

purdyoaten2 said:

Jeremy535897 said:

Dazed_and_C0nfused said:

Marriage Allowance for the recipient is a tax credit of £250 though, not an additional tax free allowance like the Personal Allowance is.

In this example what difference does it make?

It doesn’t  - just in the methodology. Remember the ‘total income method?’ 😊

I saw no point in complicating things for the sake of technical purity!

I entirely agree.

Pennywise

Just remember if using the simplified cash basis (most subbies would), you can't make partial AIA claim in first year and the balance at 18% in subsequent years - that kind of flexibility/planning is disallowed on the cash basis.

Jeremy535897

Pennywise said:

Just remember if using the simplified cash basis (most subbies would), you can't make partial AIA claim in first year and the balance at 18% in subsequent years - that kind of flexibility/planning is disallowed on the cash basis.

Good point.