Marriage allowance change?

Macca19

Am I right in thinking that the rumoured mini budget changes to marriage allowance, and the percentage that can be transferred, hasn't happened yet?

Dazed_and_C0nfused

Am I right in thinking that the rumoured mini budget changes to marriage allowance, and the percentage that can be transferred, hasn't happened yet?

There was no change announced to the percentage that can be transferred.

The tax credit for the recipient will presumably be reduced to £239.40 from April 2023 as this is calculated by reference to the basic rate of tax, which will be 19%.

N1c1986

Hello, I’m new here I’ve got a question wondered if anyone could help?
my husband has marriage allowance the other man he works with doesn’t they work exactly the same hours have exactly the same hourly rate yet my husband is paying nearly £400 more tax each month anyone know why that is the only difference on their payslips is the tax codes. 

Thanks 

comeandgo

It’s the tax code that determines how much tax you pay and tax is individual so you have no idea what your husbands co worker taxable or tax free lifestyle is.  

sheramber

The different tax codes is why the tax deducted is different.

He would need to compare how the tax codes were arrived to know the difference.

Unless both men are prepared to compare codes you will never know why.

All your husband can do is check that his code number is correct.

AviatorEGHH

I was also praying for a change in the Marriage allowance. I find it totally unfair that people who earn above the basic rate aren't allowed to use the Tax free allowance from their spouse. My wife doesn't work and is a full time Mother. Due to the nature of my job, it is almost impossible for my wife to find a job that is flexible enough to allow her to be available for our child whenever I get called to work, and due to the amount one gets paid these days, child care isn't an option. Especially considering that also due to my income, we are not eligible for any other allowances.
The government usually design loop holes they can make use of but I haven't found one yet. Can anybody help?

[Deleted User]

AviatorEGHH said:

I was also praying for a change in the Marriage allowance. I find it totally unfair that people who earn above the basic rate aren't allowed to use the Tax free allowance from their spouse. My wife doesn't work and is a full time Mother. Due to the nature of my job, it is almost impossible for my wife to find a job that is flexible enough to allow her to be available for our child whenever I get called to work, and due to the amount one gets paid these days, child care isn't an option. Especially considering that also due to my income, we are not eligible for any other allowances.
The government usually design loop holes they can make use of but I haven't found one yet. Can anybody help?

It has never been the case that a married man could benefit from the unused allowances of his wife. Prior to 1990 the reverse could happen where any unused allowances of a married man could be transferred to his wife but independent taxation was introduced that year to prevent that option. It is difficult to imagine now, but the ‘wife’ didn’t have a ‘personal allowance’ but a ‘wife’s earned income allowance’. The ‘man’ also received a ‘marriage allowance’. All historic irrelevance I know but the bottom line is that independent taxation ended the ability to transfer any allowances between spouses and their tax affairs were just that - independent. 

There is now the possibility to transfer 10% of one’s personal allowances in specific circumstances. Not much help, I am afraid, but that’s the explanation!

Dazed_and_C0nfused

AviatorEGHH said:

I was also praying for a change in the Marriage allowance. I find it totally unfair that people who earn above the basic rate aren't allowed to use the Tax free allowance from their spouse. My wife doesn't work and is a full time Mother. Due to the nature of my job, it is almost impossible for my wife to find a job that is flexible enough to allow her to be available for our child whenever I get called to work, and due to the amount one gets paid these days, child care isn't an option. Especially considering that also due to my income, we are not eligible for any other allowances.
The government usually design loop holes they can make use of but I haven't found one yet. Can anybody help?

People who earn above above the basic rate are eligible for Marriage Allowance if they pay sufficient pension contributions or make Gift Aid payments to increase there basic rate band sufficiently to avoid paying higher rate tax.

AviatorEGHH

purdyoaten2 - Thank you for your reply. I understand all that. I'm just sad that individual circumstances are never taken into account...

p00hsticks

AviatorEGHH said:

Especially considering that also due to my income, we are not eligible for any other allowances.

Even if you are over the £60k income that would preclude her from claiming any financial Child Benefit, hopefully your wife is at least claiming the associated NI credits that she would still be entitled to and will help build up her State Pension entitlement  ? (Assuming your youngest child is under the age of 12)