Marriage allowance when on Standard rate PIP and Contribution based ESA Support group

drakhan

As title suggests i'm on Standard rate PIP and Contribution based ESA Support group.
Using Excel spreadsheet i worked out my benefit for following:
Total for PIP for next tax year is approx £7308.60
Total for ESA for next tax year is £5361.20
Total combined is £12,669.80
This means i'm £99.80 above the tax threshold but dont know whether these benefits will change my tax code or not and whether it is worth giving my wife my Marriage allowance for the tax year 2025/26.
She is about to start her last year of NHS work before officialy retiring although she is claiming state pension.
Her wage is estimated for next year as £37,732 before tax plus her state pension will be £ 12107.14 so total of with total of £49,810.14 and tax code will be 43L.

Is it worth it to transfer marriage allowance to my wife

Dazed_and_C0nfused

drakhan said:

As title suggests i'm on Standard rate PIP and Contribution based ESA Support group.
Using Excel spreadsheet i worked out my benefit for following:
Total for PIP for next tax year is approx £7308.60
Total for ESA for next tax year is £5361.20
Total combined is £12,669.80
This means i'm £99.80 above the tax threshold but dont know whether these benefits will change my tax code or not and whether it is worth giving my wife my Marriage allowance for the tax year 2025/26.
She is about to start her last year of NHS work before officialy retiring although she is claiming state pension.
Her wage is estimated for next year as £37,732 before tax plus her state pension will be £ 12107.14 so total of with total of £49,810.14 and tax code will be 43L.

Is it worth it to transfer marriage allowance to my wife

PIP isn't a taxable benefit so you can ignore that when it comes to tax.

If ESA of £5.3k is going to be your only taxable income during 2024-25 then it would make sense for you apply for Marriage Allowance.

Your wife is close the higher rate threshold though.  Is the £37,732 her salary or her taxable pay after her pension contributions have been deducted?  

Does she have interest to add to her taxable income?  You can ignore interest from ISA's.

drakhan

Thanks for the response.
Her taxable pay for current tax year is £37,751 and for next tax year 25/26 is £37,732.
So if you are right then it is worth claiming the Marriage allowance.
She has paid £7,114 tax for tax year 24/25 and estimated to pay £7,458 for tax year 25/26 (not counting the addition of marriage allowance). Doesn't pay NI