Marriage Allowance - do I need to cancel

Mothernature1979

Hi, after watching the live show last night I realised some years ago I applied for the marriage allowance to be transferred to my husband when I was on a low income. For the last 3 years I have been on a higher income (20% tax payer). Do I need to cancel the allowance or will HMRC just see that I earn more? Not sure what the right thing to do is. Thank you 

Dazed_and_C0nfused

Mothernature1979 said:

Hi, after watching the live show last night I realised some years ago I applied for the marriage allowance to be transferred to my husband when I was on a low income. For the last 3 years I have been on a higher income (20% tax payer). Do I need to cancel the allowance or will HMRC just see that I earn more? Not sure what the right thing to do is. Thank you 

You remain eligible until you are a higher rate payer.

HMRC won't do anything unless you become a higher rate payer.

If your spouse benefits by the full £252 then as a couple you are no worse off.  But if you would prefer you can cancel it and both revert to normal. 

If you only pay a small amount of basic rate tax (less than £252) it might be better (financially) to leave things as they are.

sammyjammy

Hope its ok to add a related question on, seemed to make sense rather than start a new thread.

My mum transferred some of her personal allowance to my Dad under the marriage allowance scheme.  She has a state pension and an LGPS pension both of which will rise from April.  She paid £97 in tax in 22/23 according to her P60u, I assume thats gone up quite a bit this year, does it make sense for them to now cancel it?  My dad is a basic rate tax payer.

It'd be good if there was an MSE calculator

ETA I just worked out her income next year will be £14019 so just under £290 in tax if she went back to tax code of 12570

Dazed_and_C0nfused

sammyjammy said:

Hope its ok to add a related question on, seemed to make sense rather than start a new thread.

My mum transferred some of her personal allowance to my Dad under the marriage allowance scheme.  She has a state pension and an LGPS pension both of which will rise from April.  She paid £97 in tax in 22/23 according to her P60u, I assume thats gone up quite a bit this year, does it make sense for them to now cancel it?  My dad is a basic rate tax payer.

It'd be good if there was an MSE calculator

ETA I just worked out her income next year will be £14019 so just under £290 in tax if she went back to tax code of 12570

If your dad is saving £252 from receiving Marriage Allowance then it doesn't matter for them as a couple really.

But she may prefer the money in her pocket rather than his 😀