Marriage Allowance - What happens if it go over 50K?

jamjar92

I have read https://www.gov.uk/marriage-allowance

"your partner pays Income Tax at the basic rate, which usually means their income is between £12,501 and £50,000" Is this figure NET or GROSS.

My basic for 21/22 will be probably be under 50K previously I busted that, with pension and salary sacrifice, would take me lower still, but there is chance of adhoc standby and overtime.

What happens if I go over, I do self assessment currently will the excess be claimed this way?

Jeremy535897

Your spouse/civil partner may choose to transfer 10% of their personal allowance to you in a tax year. It is only worthwhile if they are not using all their personal allowance. If this is done, and your income exceeds the basic rate, you can only claim the normal personal allowance, not the transferred marriage allowance, against your tax.

Dazed_and_C0nfused

jamjar92 said:

I have read https://www.gov.uk/marriage-allowance

"your partner pays Income Tax at the basic rate, which usually means their income is between £12,501 and £50,000" Is this figure NET or GROSS.

My basic for 21/22 will be probably be under 50K previously I busted that, with pension and salary sacrifice, would take me lower still, but there is chance of adhoc standby and overtime.

What happens if I go over, I do self assessment currently will the excess be claimed this way?

HMRC will let you have Marriage Allowance in your tax code during the year (as your exact tax situation for the year is not known) but if you are not eligible you will pay any tax benefit received back as part of your Self Assessment calculation.

Your actual taxable income doesn't matter though, it is being liable to tax at the higher rate which is what makes you ineligible. 

Note having dividend income which would be taxed at higher rate if it weren't for the dividend nil rate (aka Dividend Allowance) classifies you as higher rate even if no higher rate tax is actually due.

jamjar92

Jeremy535897 said:

Your spouse/civil partner may choose to transfer 10% of their personal allowance to you in a tax year. It is only worthwhile if they are not using all their personal allowance. If this is done, and your income exceeds the basic rate, you can only claim the normal personal allowance, not the transferred marriage allowance, against your tax.

My spouse is not using anywhere near her allowance has she a full time student therefore no earned income.So if my income stays at BR it after pension and SSAVC is taken into account as this reduces my TAX and NI.

So is this claimed during the tax year or after?

Dazed_and_C0nfused

You cannot "claim" Marriage Allowance.

The person agreeing to have a lower Personal Allowance has to apply and you will then get the Marriage Allowance tax credit (worth £250 in the current tax year).

She has until 5 April 2026 to apply for the 2021:22 tax year although there is really no point in leaving it so long.  She can apply during the tax year if she wishes.

jamjar92

Dazed_and_C0nfused said:

She has until 5 April 2026 to apply for the 2021:22 tax year.

Sorry @Dazed_and_C0nfused yes she as to gift to me.

Did not realise this could be done retrospectively, she might as well wait until April 2022 for year 2021/22 saves messing.

Jeremy535897

See https://www.gov.uk/marriage-allowance You said you have read it, but it covers backdating of the relief.