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marriage allowance tax code
randm
Posts: 493 Forumite
in Cutting tax
if the basic tax code for an average earner is 1257 L , is the marriage allowance tax transfer added on to that, and the number changed to reflect that, or is it just the letter m that indicates the transferral ? am asking because i gave my allowance to my husband as he works and i am on benefits. due to being in and out of work / placed on and off job seekers, due to covid, the tax code keeps changing, so we are unsure what it should be. in my head the £1260 allowance should make the tax code 1383 m??
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Comments
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They add 126 to the tax code (different in Scotland due to the 19, 20 & 21% tax rates) and the M suffix so that the recipient gets an extra £1260 at 20% = £252.
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The number would increase to 1383. The letter (suffix) is generally for payroll purposes but you are correct to say that an ‘M’ code e would signify that you are in receipt of marriage allowance transfer from your spouse. For example,an employer would have been instructed to increase all ‘L’ codes by 7 at the start of this tax year (standard code from 1250L to 1257L). The alternative would be to send individual coding instructions for every employee in the U.K. which would not be practical.
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I'm on the marriage allowance code and it's 1414M
Hope that helps1
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