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  • FIRST POST
    • Former MSE Sam M
    • By Former MSE Sam M 2nd Jun 15, 4:39 PM
    • 238Posts
    • 159Thanks
    Former MSE Sam M
    Marriage Allowance
    • #1
    • 2nd Jun 15, 4:39 PM
    Marriage Allowance 2nd Jun 15 at 4:39 PM
    Hi!

    This is the discussion thread for the



    Click reply below to discuss. If you havenít already, join the forum to reply. If you arenít sure how it all works, read our New to Forum? Intro Guide.


    Thanks folks ,
Page 60
    • polymaff
    • By polymaff 6th Mar 18, 3:14 PM
    • 2,123 Posts
    • 921 Thanks
    polymaff
    . . . . or ask if they'll accept your UTR instead.

    It worked for me when my half-century-old NIN was unrecognised
    • Callumcruickshank
    • By Callumcruickshank 6th Mar 18, 9:33 PM
    • 1 Posts
    • 0 Thanks
    Callumcruickshank
    Anyone have an idea how the new Scottish income tax bands (19, 20, 21%) will affect eligibility for marriage allowance? Currently a basic rate tax payer but due to be in the 21% band as of next month. Couldn't see anything on the Scottish Gov or HMRC websites...
    • Dazed and confused
    • By Dazed and confused 6th Mar 18, 10:23 PM
    • 2,652 Posts
    • 1,272 Thanks
    Dazed and confused
    It is covered in this blog and there is no suggestion it will be given at a different rate in Scotland i.e. the recipient would be entitled to a tax credit of £238 in 2018:19 (£1190 x 20%).

    Legislation is apparently going to be changed to ensure people liable at the two new starter and intermediate rates are still eligible (providing they don't stray into the higher rate).

    https://www.tax.org.uk/media-centre/blog/technical/scottish-income-tax-rates-and-thresholds-%E2%80%93-what-do-changes-mean-scottish
    • twitterers
    • By twitterers 13th Mar 18, 6:14 PM
    • 7 Posts
    • 1 Thanks
    twitterers


    Just wondering how this works if the couple are married in Pakistan but not in the UK?
    • polymaff
    • By polymaff 13th Mar 18, 6:51 PM
    • 2,123 Posts
    • 921 Thanks
    polymaff
    Anyone have an idea how the new Scottish income tax bands (19, 20, 21%) will affect eligibility for marriage allowance? Currently a basic rate tax payer but due to be in the 21% band as of next month. Couldn't see anything on the Scottish Gov or HMRC websites...
    Originally posted by Callumcruickshank
    Might be worth keeping an eye on legislation.gov where an SI may be used - like the one that incorporated the original concept of the Scottish Basic Rate into the Income Tax act:

    http://www.legislation.gov.uk/uksi/2015/1810/article/14/made#article-14-4
    • manuncrod77
    • By manuncrod77 26th Mar 18, 7:54 PM
    • 2 Posts
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    manuncrod77
    So simple!
    I saw the article about claiming Marriage Allowance in Martin's newsletter, followed the simple instructions about how to claim and in no time at all my wife and I were the proud owners of £662! (Well £432 now and £230 in the tax year 2018/19)
    I always read the newsletters and boy, did it pay off this time! I'm retired and pay tax on my pensions, my wife is a non-taxpayer so the claim was made online in her name and a few hours later she got an email to say that we were entitled to claim, and a few days after that I got a cheque for £432 in the post. Cheers Martin!
    • Dazed and confused
    • By Dazed and confused 26th Mar 18, 8:16 PM
    • 2,652 Posts
    • 1,272 Thanks
    Dazed and confused
    my wife and I were the proud owners of £662! (Well £432 now and £230 in the tax year 2018/19)

    You may have slightly misunderstood (but in a good way )

    £662 is the standard amount for 2015:16 and 2016:17 tax years but for 2018:19 it is £238, not £230.

    But £230 is the standard amount for 2017:18 so whichever way you look at it if your wife applied for 2017:18 as well as the other three years you are going to be £230+ better off than you originally thought. You would normally get a new tax code and refund through your pension for the current tax year but it's probably too late in the year for that to happen now for 2017:18 so presumably you'll get another cheque from HMRC in due course when they have reviewed 2017:18.
    Last edited by Dazed and confused; 26-03-2018 at 8:26 PM.
    • manuncrod77
    • By manuncrod77 29th Mar 18, 8:12 PM
    • 2 Posts
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    manuncrod77
    It just gets better!

    You're right, I did misunderstand, and definitely in a good way! At this rate HMRC's gonna go bust!
    • jaunty jag
    • By jaunty jag 3rd Apr 18, 9:36 PM
    • 2 Posts
    • 0 Thanks
    jaunty jag
    MA and Savings Interest
    Using 2017/18 rates, if you earn less than 11500 ( below basic rate tax payer level) , you can get savings interest of 6000 tax free.

    If my wife transfers her Marriage Allowance to me , does that increase the level you can earn by 1150 to 12650 (as this is still below basic tax payer level)?

    Or do you start to pay tax on savings interest at a lower level now ?

    Many Thanks
    • Dazed and confused
    • By Dazed and confused 3rd Apr 18, 10:04 PM
    • 2,652 Posts
    • 1,272 Thanks
    Dazed and confused
    Using 2017/18 rates, if you earn less than 11500 ( below basic rate tax payer level) , you can get savings interest of 6000 tax free.

    If my wife transfers her Marriage Allowance to me , does that increase the level you can earn by 1150 to 12650 (as this is still below basic tax payer level)?

    Or do you start to pay tax on savings interest at a lower level now ?


    No, Marriage Allowance doesn't entitle you to any extra allowances.

    If your wife applies for Marriage Allowance for 2017:18 she is giving up part of her Personal Allowance but you don't get that, you get a deduction from your tax bill. Basically your own tax bill would be calculated as normal (including, if applicable, the savings and Personal Savings Allowance rate bands) and you get £230 (for 2017:18) knocked off the tax you need to pay for the year - this is the Marriage Allowance (if you don't need to pay as much as £230 then the benefit of Marriage Allowance is limited to whatever your tax bill is). .
    • Mummy81
    • By Mummy81 4th Apr 18, 8:47 PM
    • 61 Posts
    • 39 Thanks
    Mummy81
    Teacher training
    Hi all,

    I need some advice. I start teacher training this year - my last paycheck will be August and I will have earned approx 6k, from this point on I will earn nothing until, hopefully, September 2019. Does it make sense for me to transfer my allowance to my husband?

    Also, if I do this should I cancel it at the end of the financial year 2019/20?

    Sorry lots of questions.

    Thanks in advance
    • Dazed and confused
    • By Dazed and confused 4th Apr 18, 9:18 PM
    • 2,652 Posts
    • 1,272 Thanks
    Dazed and confused
    If your only income for the 2018:19 tax year will be the 6k then yes it makes sense for you to apply.

    Assuming he pays enough tax but no higher rate tax then you will save him £238.

    You would have to cancel it during the 2019:20 tax year and things revert to normal from 6 April 2020.

    https://www.gov.uk/marriage-allowance/if-your-circumstances-change
    • LouiseH1980
    • By LouiseH1980 10th Apr 18, 1:08 PM
    • 1 Posts
    • 0 Thanks
    LouiseH1980
    Higher earner not eligible for Marriage Allowance
    As the title says.

    I applied online for previous years this is what it says:
    2017 to 2018 Applied for Marriage Allowance retrospectively
    2016 to 2017 Applied for Marriage Allowance retrospectively
    2015 to 2016 Higher earner not eligible for Marriage Allowance

    What does that mean for 15/16? my husband earned less than £40k and i only had a paid job for 6 months at the end of the year and earned £2700 (part time)
    any ideas?
    • Consumerist
    • By Consumerist 10th Apr 18, 2:03 PM
    • 4,843 Posts
    • 2,388 Thanks
    Consumerist
    As the title says.

    I applied online for previous years this is what it says:
    2017 to 2018 Applied for Marriage Allowance retrospectively
    2016 to 2017 Applied for Marriage Allowance retrospectively
    2015 to 2016 Higher earner not eligible for Marriage Allowance

    What does that mean for 15/16? my husband earned less than £40k and i only had a paid job for 6 months at the end of the year and earned £2700 (part time)
    any ideas?
    Originally posted by LouiseH1980
    It would seem that HMRC believes that your husband was a higher-rate taxpayer in 2015/16; he should contact HMRC if he feels they have got their facts wrong.
    Warning: In the kingdom of the blind, the one-eyed man is king.
    • polymaff
    • By polymaff 10th Apr 18, 2:47 PM
    • 2,123 Posts
    • 921 Thanks
    polymaff
    my husband earned less than £40k
    Originally posted by LouiseH1980
    Depends what you mean by "earned". Income Tax is a tax on more than earnings.

    Savings? Dividends? Benefits - including benefits-in-kind?
    • nicksynan
    • By nicksynan 11th Apr 18, 10:52 AM
    • 2 Posts
    • 0 Thanks
    nicksynan
    Hi there

    To claim MA do you have to be living with my wife
    • sheramber
    • By sheramber 11th Apr 18, 11:22 AM
    • 4,792 Posts
    • 3,592 Thanks
    sheramber
    Hi there

    To claim MA do you have to be living with my wife
    Originally posted by nicksynan
    Are you both entitled to the Personal Allowance?
    • polymaff
    • By polymaff 11th Apr 18, 12:56 PM
    • 2,123 Posts
    • 921 Thanks
    polymaff
    Hi there

    To claim MA do you have to be living with my wife
    Originally posted by nicksynan
    No, I'm quite happy living with MY wife.

    There is no residency test.
    Last edited by polymaff; 11-04-2018 at 12:59 PM.
    • nicksynan
    • By nicksynan 11th Apr 18, 1:12 PM
    • 2 Posts
    • 0 Thanks
    nicksynan
    I work, and i earn less than 40k, shes a house wife or stay at home mum.

    She has her own place, i still live at home but stay at her house most of the time, would love to livs there, but there is no space
    • thermalboyz
    • By thermalboyz 11th Apr 18, 4:27 PM
    • 23 Posts
    • 7 Thanks
    thermalboyz
    I have few simple questions regarding marriage allowance and wondering if anyone has a similar situation can help.

    I previously within the allowance (Previous Job), then I changed job in 2017 (but i am over the allowance), this year since HMRC increasing the allowance I might be able to adjust it to be within the allowance range.

    Questions-
    1) Do car allowance included in the total calculation of eligibility?
    2) Can I adjust (salary sacrifice) pension % to make it within the range?
    3) I had it in 2016/17 (before career change), Not in 2017/18 (after career changed), now 2018/19, do I need to enrol again if I am below £46,350?

    Thank you very much and if i can make it work it will be extra cash contributed to my pension pot + extra Tax free savings.
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