Marriage allowance self employed

sheramber

I think the OP could be  'earnings'  as her self employed income. To Joe Public it is earnings.

Dh6

[Deleted User] said:

sheramber said:

Dh6 said:

Our tax returns have already been submitted via our account.

I’m a basic rate taxpayer DazedandConfused and my wife doesn’t use her full personal allowance which makes it beneficial for us to claim the marriage allowance I believe. 

So is it 17/18 tax year that were able to go back to? 

Also, assuming we are successful would I be reimbursed via a cheque or through my tax code?

Many thanks DH

If you are self employed you do not have a tax code. Your tax is assessed through your self employment.

I am a little confused as to how much of wife’s personal allowance is available to transfer if she is self-employed and also earns 8-10k from her part time job.

I’ve read through the comments and still don’t understand tbh. Say my wife earns 8k in a tax year and I earn 40k. Is it beneficial to claim marriage allowance? 

My understanding is that my wife still won’t pay tax as her income doesn’t exceed the 0% tax bracket.

kind regards DH

Dazed_and_C0nfused

Applying for Marriage Allowance means your wife will get a reduced Personal Allowance.

If her total taxable income was £8k each year them she wouldn't make herself liable to tax as the lowest Personal Allowance she would have would be £10,350.

But HMRC don't check that, they just check if she is eligible.  She could earn £40k and be eligible but it would be very rarely be beneficial.

You don't get an increased Personal Allowance, you would receive a tax deduction each year worth up to £252 (current tax year amount).  

sheramber

Dh6 said:

Our tax returns have already been submitted via our account.
employed and also earns 8-10k from her part time job.

I’ve read through the comments and still don’t understand tbh. Say my wife earns 8k in a tax year and I earn 40k. Is it beneficial to claim marriage allowance? 

My understanding is that my wife still won’t pay tax as her income doesn’t exceed the 0% tax bracket.

kind regards DH

you seem to be contradicting yourself

I’m a basic rate taxpayer DazedandConfused and my wife doesn’t use her full personal allowance which makes it beneficial for us to claim the marriage allowance I believe. 

So is it 17/18 tax year that were able to go back to? 

Also, assuming we are successful would I be reimbursed via a cheque or through my tax code?

Now you don't understand how it will benefit you.



Your wife applies to transfer some of her personal allowance to you.

If her income is still below her reduced allowance then she still doesn't pay any tax.

But you get a credit against your tax liability.

For earlier years you will get a cheque or bank transfer, depending on what you asl for.

For future years your elf assessment tax bill will be reduced.

Dh6

Just to bring closure to this thread, I’ve had a nice rebate from HMRC via bank transfer this morning. Thanks for all of the help. Thanks