Marriage tax threshold

Cobbler_tone

Thank you both

savings37

This is interesting...

March '24, we cancelled our marriage tax allowance as my partners salary had increased to £13,100 (Originally £12,400).

My salary is £28,000. No tax paid on savings.

Did I do the correct thing?

Dazed_and_C0nfused

savings37 said:

This is interesting...

March '24, we cancelled our marriage tax allowance as my partners salary had increased to £13,100 (Originally £12,400).

My salary is £28,000. No tax paid on savings.

Did I do the correct thing?

Salary is often irrelevant because of pension contributions.  What do you expect her P60 for 2024-25 to show her taxable pay as?

savings37

Of course, I hadn't calculated for pension contributions. Approx £12400 for 2024-25

Dazed_and_C0nfused

savings37 said:

Of course, I hadn't calculated for pension contributions. Approx £12400 for 2024-25

Assuming you have mentioned anything that is relevant then it would have been (marginally) better not cancelling it.

Your wife will pay no tax.  You will pay £252 more.

If Marriage Allowance was still in place your wife would have a tax liability of £218 and you would have saved £252.  So £34 better off than you are.

Your wife could always apply again for 2024-25 but maybe a one year only application would be prudent as she is presumably likely to earn £12,570 or more next tax year?

savings37

Wages looking to stay the same going into the next tax year, I'll look at resubmitting the claim for this tax year then. 

Thanks for your help 🙂

Dazed_and_C0nfused

savings37 said:

Wages looking to stay the same going into the next tax year, I'll look at resubmitting the claim for this tax year then. 

Thanks for your help 🙂

Your wife would no doubt look favourably on a gift of £218 towards her tax liability for 2024-25 then 😉

savings37

Absolutely