Married Couple Savings Tax Saving Tip

deemy2004 · 7 December 2004 at 1:41AM

I don't believe you can put money into a pension if you aren't earning, so my answer would be NO.
But check it out with an expert in case I'm wrong (or out of date).
Do you have a financial advisor who deals with your pension at work who could answer the question for you?

Everyone can put upto, I think £3,600 gross equiavlent into a pension fund every year, regardless of earnings.

deemy2004 · 7 December 2004 at 1:43AM

Can someone pls confirm that the tax counter resets every April? If my wife plans to quit her job sometime in Feb, all I need to do effectively is to transfer all my savings to her name after that, and intimate the Bank of her new tax status to ensure that no tax is cut on savings interest after that?

Tax year starts 6th April. So complete the R85 forms on or after that date. You can transfer earlier if you want, in preperations for the new tax year, but still will be taxed at 20%.

MarkyMarkD · 7 December 2004 at 9:50PM

Everyone can put upto, I think £3,600 gross equiavlent into a pension fund every year, regardless of earnings.

Yep, you can buy a stakeholder pension for your non-earning spouse. £2,808 cash cost = £3,600 in the fund. As deemy says that is the maximum for non-earners. The grossing up makes up for a bit of dubious investment management.

eilz · 14 July 2005 at 12:43PM

If your savings are in an ISA account in the highter tax earners name would they pay more tax than in an ISA account in a lower tax earners name.

Appologies if this is a blonde question

donsaini · 14 July 2005 at 1:02PM

there is no tax to pay at all on ISA accounts, so top that up first for both, then think of these possibilities.

my solution was as i am the higher rate tax payer, i save for pension, get 40% tax relief, wife lower rate tax payer saverest, after our ISAs that is

:beer:

ashveen · 19 February 2006 at 7:03PM

Can anybody guide me please. I am a higher rate tax payer. I married recently and my wife does not work. I was hoping to transfer my savings into her account to avail tax benefit. The R85 form asks for an NI number which she does not have as she has never worked in this country.

grumbler · 19 February 2006 at 7:12PM

Read information here: http://www.dwp.gov.uk/lifeevent/benefits/ni_number.asp#where.

I think she can just apply for a NI number.

ashveen · 21 February 2006 at 9:38PM

Thanks, But the NI office say that she can appply for an NI number only if she has a job offer and my wife cannot work due to family committments

grumbler · 21 February 2006 at 11:19PM

I am not an expert, but the website gives other possible reasons:

you want to claim benefit

you are self-employed

you are looking for work

How can they check? Do you claim children's tax credit (gross annual joint income below £60K)?

isasmurf · 21 February 2006 at 11:42PM

The bank can accept the R85 without the NI number. Looking around HMRC site you only have to enter it if you have worked in the last 3 years.

Married Couple Savings Tax Saving Tip

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