Marriage Allowance

scorpiolady

i have been claiming marriage allowance because i was earning 10,868 a year, now that minimum wage has gone up i earn 11,920 a year.
I am paid monthly so my hours paid are different every month , this month i did 104.5 hours so i earned £1088.89 and i paid £28 in tax
Will i get this back at the end of the year?

Savvy_Sue

If you have the right tax code, the amount you pay should go up and down with your pay, and balance out across the year

sheramber

Having transferred 10% of your allowance your personal allowances are reduced to 11310.

On an income of 11920 you will pay tax on 610 @ 20%.= 122

But remember your husband will receive a reduction of 252  in his tax paid so as a couple you are still benefitting. 

Brie

sheramber said:

Having transferred 10% of your allowance your personal allowances are reduced to 11310.

On an income of 11920 you will pay tax on 610 @ 20%.= 122

But remember your husband will receive a reduction of 252  in his tax paid so as a couple you are still benefitting. 

Shouldn't you say spouse instead?  The lady may have a wife for all we know!

sheramber

Brie said:

sheramber said:

Having transferred 10% of your allowance your personal allowances are reduced to 11310.

On an income of 11920 you will pay tax on 610 @ 20%.= 122

But remember your husband will receive a reduction of 252  in his tax paid so as a couple you are still benefitting. 

Shouldn't you say spouse instead?  The lady may have a wife for all we know!

Or she may have a civil partner

scorpiolady

Thanks , btw i have a husband lol ...

Nic880

Sorry to jump on your post but I have just cancelled my marriage tax allowance as I have taken on a new role and salary at work so earn too much, it said when I cancelled it that I will stay on it till april 2024, does this mean I may owe them tax back next year? Does anyone understand it because I don't haha

Savvy_Sue

Remember there are two people affected by the marriage allowance.

Higher earner gets lower code, so pays tax on more of their income.

Lower earner gets higher code, so pays tax on less of their income.

All balances out.

sheramber

You won't owe tax. You will pay tax on your salary but your the other party will still be paying the lower amount of tax due to the allowance.

As a couple it works out the same. 

From 6 April 2024 you will receive your full allowance again.

Nic880

Ahh thanks everyone!