Marriage tax allowance and income changes in year.

housebuyer143

Ok, so I don't know the answer and need some help. 

I have always given my husband some of my allowance as I work part time, however this year, due to payrise and carers allowance increases, I earn over £12,570.
To top this off my husband got a payrise and he's now in the higher rate tax band so we are not eligible for it anyway. 

I cancelled and it and says it will not take affect until April 2025. Ok, but if we are not eligible anymore then will my husband still get the extra allowance this year or will they take it off him when they realise he's a higher rate tax payer? 
If they take it off him for 24/25, will they give it back to me for 24/25?

I don't want to be paying extra tax due to a reduced personal allowance if he isn't getting the allowance, if you see what I mean. 

Any help is appreciated x 

Dazed_and_C0nfused

housebuyer143 said:

Ok, so I don't know the answer and need some help. 

I have always given my husband some of my allowance as I work part time, however this year, due to payrise and carers allowance increases, I earn over £12,570.
To top this off my husband got a payrise and he's now in the higher rate tax band so we are not eligible for it anyway. 

I cancelled and it and says it will not take affect until April 2025. Ok, but if we are not eligible anymore then will my husband still get the extra allowance this year or will they take it off him when they realise he's a higher rate tax payer? 
If they take it off him for 24/25, will they give it back to me for 24/25?

I don't want to be paying extra tax due to a reduced personal allowance if he isn't getting the allowance, if you see what I mean. 

Any help is appreciated x 

If, once the tax year is finalised, he isn't eligible for it then it would be cancelled for that tax year.

From what you've posted you would actually remain eligible for it but as your husband isn't you would get the standard Personal Allowance of £12,570 back.  Which could well result in you getting a refund next summer (for 2024-25).

One small downside to changes like this is that, to ensure people get the benefit of Marriage Allowance as soon as possible, HMRC increase their tax code allowances by £1,260.  This can mean someone who isn't ultimately eligible owes £500+, not the £252 that might seem the more obvious amount.

housebuyer143

Dazed_and_C0nfused said:

housebuyer143 said:

Ok, so I don't know the answer and need some help. 

I have always given my husband some of my allowance as I work part time, however this year, due to payrise and carers allowance increases, I earn over £12,570.
To top this off my husband got a payrise and he's now in the higher rate tax band so we are not eligible for it anyway. 

I cancelled and it and says it will not take affect until April 2025. Ok, but if we are not eligible anymore then will my husband still get the extra allowance this year or will they take it off him when they realise he's a higher rate tax payer? 
If they take it off him for 24/25, will they give it back to me for 24/25?

I don't want to be paying extra tax due to a reduced personal allowance if he isn't getting the allowance, if you see what I mean. 

Any help is appreciated x 

If, once the tax year is finalised, he isn't eligible for it then it would be cancelled for that tax year.

From what you've posted you would actually remain eligible for it but as your husband isn't you would get the standard Personal Allowance of £12,570 back.  Which could well result in you getting a refund next summer (for 2024-25).

One small downside to changes like this is that, to ensure people get the benefit of Marriage Allowance as soon as possible, HMRC increase their tax code allowances by £1,260.  This can mean someone who isn't ultimately eligible owes £500+, not the £252 that might seem the more obvious amount.

Thanks - at least it will kind of sort itself out, but seems like it might be messy and take a while. 
Appreciate your response 👍