Marriage Tax Allowance

Sunshine_Girl21

How can I tell if it is worth me doing the marriage tax allowance for my husband this year when I have a untaxed interest on savings element in my tax code for £945, which with my pension income takes me up to the £12570. My husband is the slightly bigger earner. 

Dazed_and_C0nfused

Sunshine_Girl21 said:

How can I tell if it is worth me doing the marriage tax allowance for my husband this year when I have a untaxed interest on savings element in my tax code for £945, which with my pension income takes me up to the £12570. My husband is the slightly bigger earner. 

Based on what you have posted some of all of your interest will be taxed.  But at a 0% rate 😄

Your tax code is irrelevant though really, what do you expect your actual income to be, split between non savings non dividend income such as taxable earnings, pensions, rental income etc and interest.

Sunshine_Girl21

Thanks for your response Dazed_and_C0nfused. I expect my pension to be £11, 625 and to receive approx £900 interest from our joint savings. My husbands pensions will pay him £13, 800 and he will also receive £900 interest from our joint savings. So I was thinking should I apply as the lower income earner to do Marriage Tax Allowance and pass some of my tax allowance over to him?  We dont expect our interest on savings this year to exceed our joint Personal Tax Allowances. 

Sunshine_Girl21

Dazed_and_C0nfused said:

SunsDazed_and_C0nfused said:

Sunshine_Girl21 said:

How can I tell if it is worth me doing the marriage tax allowance for my husband this year when I have a untaxed interest on savings element in my tax code for £945, which with my pension income takes me up to the £12570. My husband is the slightly bigger earner. 

Based on what you have posted some of all of your interest will be taxed.  But at a 0% rate 😄

Your tax code is irrelevant though really, what do you expect your actual income to be, split between non savings non dividend income such as taxable earnings, pensions, rental income etc and interest.

hine_Girl21 said:

How can I tell if it is worth me doing the marriage tax allowance for my husband this year when I have a untaxed interest on savings element in my tax code for £945, which with my pension income takes me up to the £12570. My husband is the slightly bigger earner. 

Based on what you have posted some of all of your interest will be taxed.  But at a 0% rate 😄

Your tax code is irrelevant though really, what do you expect your actual income to be, split between non savings non dividend income such as taxable earnings, pensions, rental income etc and interest.

Thanks for your response Dazed_and_C0nfused. I expect my pension to be £11, 625 and to receive approx £900 interest from our joint savings. My husbands pensions will pay him £13, 800 and he will also receive £900 interest from our joint savings. So I was thinking should I apply as the lower income earner to do Marriage Tax Allowance and pass some of my tax allowance over to him?  We dont expect our interest on savings this year to exceed our joint Personal Tax Allowances. 

Dazed_and_C0nfused

Sunshine_Girl21 said:

Dazed_and_C0nfused said:

SunsDazed_and_C0nfused said:

Sunshine_Girl21 said:

How can I tell if it is worth me doing the marriage tax allowance for my husband this year when I have a untaxed interest on savings element in my tax code for £945, which with my pension income takes me up to the £12570. My husband is the slightly bigger earner. 

Based on what you have posted some of all of your interest will be taxed.  But at a 0% rate 😄

Your tax code is irrelevant though really, what do you expect your actual income to be, split between non savings non dividend income such as taxable earnings, pensions, rental income etc and interest.

hine_Girl21 said:

How can I tell if it is worth me doing the marriage tax allowance for my husband this year when I have a untaxed interest on savings element in my tax code for £945, which with my pension income takes me up to the £12570. My husband is the slightly bigger earner. 

Based on what you have posted some of all of your interest will be taxed.  But at a 0% rate 😄

Your tax code is irrelevant though really, what do you expect your actual income to be, split between non savings non dividend income such as taxable earnings, pensions, rental income etc and interest.

Thanks for your response Dazed_and_C0nfused. I expect my pension to be £11, 625 and to receive approx £900 interest from our joint savings. My husbands pensions will pay him £13, 800 and he will also receive £900 interest from our joint savings. So I was thinking should I apply as the lower income earner to do Marriage Tax Allowance and pass some of my tax allowance over to him?  We dont expect our interest on savings this year to exceed our joint Personal Tax Allowances. 

If your pension is £11,625 and you apply you will need to pay £63 tax on your pension income and £0 on your interest.

Your husband would normally be liable to pay £246 on his pension and £0 on his interest.  But receipt of Marriage Allowance will reduce the £246 to £0.

So as a couple you will be £183 better off by applying.  But any increases in your pension income will reduce the benefit.

Sunshine_Girl21

Many thanks for explaining this Dazed_and_C0nfused! ☺️

Dazed_and_C0nfused

Sunshine_Girl21 said:

Many thanks for explaining this Dazed_and_C0nfused! ☺️

With a bit of luck your hubby will send £63 your way 😉