Marriage Allowance forgot to update

kel1206

Please no judgement. 

I transferred some of my personal allowance to my husband when I was earning less than the pa. About 3 years ago I started to earn a bit more and was paying tax due to going over the pa. Not a lot still earning less than 18k. I perhaps stupidly assumed that by me paying more at the lesser tax allowance evens out him paying less. Am I completely wrong here? I have done the cancellation request but won't be done until April 24. 

kel1206

Sorry should say currently am paying more tax as my tax code is lower. 

eskbanker

kel1206 said:

I perhaps stupidly assumed that by me paying more at the lesser tax allowance evens out him paying less. Am I completely wrong here?

No, you're not wrong - if you're both earning enough to be paying tax then the marriage allowance is neither negative nor positive as the collective tax paid is the same as it would have been without using the allowance.

zagfles

Unless you earn over £1000 interest in which case you'd probably pay more tax than you would have without the marriage transfer.

sheramber

How much tax are you paying compared to how much your husband is benefitting.

I paid £80 in tax but my husband got the full benefit of the transfer so , as a couple, we were still  benefitting.

kel1206

sheramber said:

How much tax are you paying compared to how much your husband is benefitting.

I paid £80 in tax but my husband got the full benefit of the transfer so , as a couple, we were still  benefitting.

This month I've paid £118 in tax based on my tax code being down to 1131

sheramber

At worst  you will pay  extra tax equal to your husbands reduction in tax due to marriage allowance so as a couple you will not be ny worse off.

Had you had the full allowance of 12570 you would still pay tax on income over £12570.