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Married woman's tax allowance - transfer back from husband or not?

I transferred my allowance to my husband a few years ago, as I didn't earn enough to pay tax. Now (both retired) I have a part-time job. My husband has taken a small pension out as a lump sum and so will be paying tax this year. Should I transfer my allowance back or leave it with my husband for this year because his tax bill will probably be higher than mine?

Comments

  • bareliz said:
    I transferred my allowance to my husband a few years ago, as I didn't earn enough to pay tax. Now (both retired) I have a part-time job. My husband has taken a small pension out as a lump sum and so will be paying tax this year. Should I transfer my allowance back or leave it with my husband for this year because his tax bill will probably be higher than mine?
    If you both have enough taxable pension or earnings income then it really doesn't matter to you as a couple.

    You could be paying £252 more than you need to.  But he will be paying £252 less than he would normally pay.

    And I think you might only be able to change things from April next year.  You notify HMRC now but the change is only effective from 6 April 2025.

    Are you 100% certain you can make use of the extra allowance if it back with you?


  • Bookworm105
    Bookworm105 Posts: 2,015 Forumite
    1,000 Posts First Anniversary Name Dropper
     simple maths tells you when it is, or is not, worth retaining the transfer

    the tax free personal allowance is 12,570 and the transfer is for 10% of it
    a transfer means he can earn 13,827 before paying tax and you can earn 11,313 before paying tax 

    if each of you now earn more than those amounts then the transfer makes no difference to you as a couple since the total tax paid is unaffected by the transfer

  • Thanks for this advice. I know it seems straightforward, but when it comes to tax, I just wanted to make sure. I think I will apply to have the allowance moved back for next year, as I will be earning a bit more and husband won't.
  • I want to know if the Married Woman’s Allowance still overrides HRP. Hi,

    I have 8 years of insufficient NI contributions from 1975-6 to 1987. In which time I was caring for three children, getting divorced and working part time. I am now 76.

    My question is whether the Married Women's Allowance still overrides HRP? Any help welcome in how to tackle HMRC.
  • sheramber
    sheramber Posts: 22,790 Forumite
    Part of the Furniture 10,000 Posts I've been Money Tipped! Name Dropper
    edited 24 July at 9:51AM
    What do you mean by married woman’s allowance?

    Are you referring to the married woman’s small stamp for National Insurance?
  • molerat
    molerat Posts: 34,722 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    edited 24 July at 11:59AM
    If you are, as above, referring to the "small stamp" then yes that scuppered any chances of pensionable recognition for those years.  You reached state retirement under a completely different set of rules, even more so if you retired before April 2010.
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