Transferred tax allowance

chris_t66

Hi all, first post.
For many years my wife hasn't worked due to ongoing health concerns. As a result, we have taken the opportunity to transfer the Allowance of £1260, giving me a tax code of 1382M.  This year for the first time my annual taxable income has taken me slightly above the 20% tax threshold by £597, this was due to a Christmas bonus.  I guess my question is, and I think I know what the answer will be.. is, at what point should my tax code have changed, at the beginning of the year?  although at that point I had no clue what the bonus would be... or at the point my income went above the 20% tax threshold?

Dazed_and_C0nfused

chris_t66 said:

Hi all, first post.
For many years my wife hasn't worked due to ongoing health concerns. As a result, we have taken the opportunity to transfer the Allowance of £1260, giving me a tax code of 1382M.  This year for the first time my annual taxable income has taken me slightly above the 20% tax threshold by £597, this was due to a Christmas bonus.  I guess my question is, and I think I know what the answer will be.. is, at what point should my tax code have changed, at the beginning of the year?  although at that point I had no clue what the bonus would be... or at the point my income went above the 20% tax threshold?

Do you mean the last tax year, 2024-25?

chris_t66

yes, 24/25

Dazed_and_C0nfused

chris_t66 said:

yes, 24/25

Then you can expect a letter from HMRC advising you of the tax underpaid (approx £505).

And also a new tax code for 2025-26, removing Marriage Allowance.

If you don't expect to be a higher rate payer in the current tax year your wife can always apply again (for 2025-26).