MARRIAGE ALLOWANCE AND PARTNERSHIP SELF EMPLOYMENT

lemonpopsicle

My husband and I were in a partnership up until December 22, when we had to close the business because he had been seriously ill. I successfully claimed backdated Marriage Allowance for 23-24, and this financial year his allowance has been changed to reflect that he receives it. I also claimed for 22-23, but have had no response from self employment dept at HMRC. I have phoned, and had the phone put down on me twice. In 22-23, my profit from partnership (my total income) was £925, my husband's total income received (including profit from partnership, profit from UK land and property, pensions and state benefits), was £12231. Can someone let me know whether we were entitled to MA in 22-23?  And how to receive it, if we were entitled.Thanks in advance.

eskbanker

lemonpopsicle said:

In 22-23, my profit from partnership (my total income) was £925, my husband's total income received (including profit from partnership, profit from UK land and property, pensions and state benefits), was £12231.

If neither of you paid any income tax then surely there's no point in applying for marriage allowance?

molerat

Anyone who is not a higher rate tax payer is entitled to give / receive the marriage allowance. Marriage allowance deducts £1260 from the allowance of the donor and deducts £252 from the tax bill of the receiver.  As it would seem your husband did not pay any tax in that year then he could not benefit.

sheramber

If your husbands totl taxable income for 22/23 was £12231 he would not pay any tax s the personal allowance is £12570.

Marriage Allowance transfer is a transfer of personal allowances from one party to the  other, which  give a credit against the tax payable by the person receiving it.

You do not get a sum of money

As your husband's tax liability for 22/23 is nil  there is no tax to set the credit off against.

e.g if your husband had been due to pay £500 in tax he would receive a credit of £252 against it so would pay  £248.

as your husbands bill is £00  there is no tax due to set credit against.

lemonpopsicle

molerat said:

Anyone who is not a higher rate tax payer is entitled to give / receive the marriage allowance. Marriage allowance deducts £1260 from the allowance of the donor and deducts £252 from the tax bill of the receiver.  As it would seem your husband did not pay any tax in that year then he could not benefit.

Ah, of course, thanks x