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Marriage Allowance - When to Cancel
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Chubba
Posts: 45 Forumite


in Cutting tax
Hello
I'm currently in receipt of Marriage Allowance transfer from my wife and I recently got a pay rise which puts me just under the threshold before no longer being eligible. My company pays discretionary bonuses at the end of the tax year and whilst I should be ok this year even if a bonus will be paid in March due to my accumulated previous salary for most of the tax year, next year any bonus that may be paid would likely push me over the threshold. As the bonuses are discretionary, they are not guaranteed so there could be none.
In terms of cancelling the Marriage Allowance, as I don't know if bonuses will or will not be paid next year would I be right to only cancel at the point my income goes above the threshold? And if I do, will I then have to pay back the allowance I got during the year?
And furthermore, if I assume I don't get a pay rise next year (obviously I would rather hope that I do rather than I don't), discounting bonuses, my income would drop back below the threshold then can I re-apply for the Marriage Allowance again?
Many thanks
I'm currently in receipt of Marriage Allowance transfer from my wife and I recently got a pay rise which puts me just under the threshold before no longer being eligible. My company pays discretionary bonuses at the end of the tax year and whilst I should be ok this year even if a bonus will be paid in March due to my accumulated previous salary for most of the tax year, next year any bonus that may be paid would likely push me over the threshold. As the bonuses are discretionary, they are not guaranteed so there could be none.
In terms of cancelling the Marriage Allowance, as I don't know if bonuses will or will not be paid next year would I be right to only cancel at the point my income goes above the threshold? And if I do, will I then have to pay back the allowance I got during the year?
And furthermore, if I assume I don't get a pay rise next year (obviously I would rather hope that I do rather than I don't), discounting bonuses, my income would drop back below the threshold then can I re-apply for the Marriage Allowance again?
Many thanks
0
Comments
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You could just do nothing.
If it turns out you actually are a higher rate payer then they will automatically cancel it.
That does leave you with a tax bill but might be simpler than cancelling and then finding out spouse has to apply again if it ends up you aren't a higher rate payer.
As I understand it HMRC will check this after the end of each tax year when they review the end position for the year that's just finished.1 -
[Deleted User] said:Loving the built in Greek predictive text.
Have corrected the post!0
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