Marriage Allowance

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Comments

  • Brighton_belle
    Brighton_belle Posts: 5,223 Forumite
    Thanks Molerat. I understand better now.
    I try to take one day at a time, but sometimes several days attack me at once
  • Dazed_and_confused
    Dazed_and_confused Posts: 6,458 Forumite
    Uniform Washer
    And if your £10,800 included any savings interest or dividend income then it could be more than £40 as that income would be taxed (in 2016:17 or 2017:18) at 0%.
  • Brighton_belle
    Brighton_belle Posts: 5,223 Forumite
    Thanks dazed and confused. It's all making abit more sense now.
    I try to take one day at a time, but sometimes several days attack me at once
  • Dazed_and_confused
    Dazed_and_confused Posts: 6,458 Forumite
    Uniform Washer
    One thing to remember in your situation is that you will get a bill for £180 and your spouse will get (assuming they paid enough tax and they paid the correct amount) about £220 tax refund.

    So you need really trust your spouse financially cause if they bank the refund and spend it on themselves then you're £180 worse off :(
  • kezzygirl
    kezzygirl Posts: 888 Forumite
    Name Dropper First Anniversary First Post Combo Breaker
    molerat wrote: »
    Which one of you cancelled it ?https://www.gov.uk/marriage-allowance/if-your-circumstances-change

    So if he cancelled it then he will get a bill for all received since first starting, if you cancelled it will run to the end of this FY and he will have to pay back this year's if he is now a higher tax payer.


    My husband transferred some of his allowance to me, as I am the higher earner. He has cancelled it online as his income has now increased to the level where it is pointless transferring to me. I continue to be the higher earner between us. It states that he will stop transferring the allowance to me at end of april 2018- will we have to pay any of the allowance back?
  • Consumerist
    Consumerist Posts: 6,310 Forumite
    Name Dropper First Post First Anniversary
    kezzygirl wrote: »
    My husband transferred some of his allowance to me, as I am the higher earner. He has cancelled it online as his income has now increased to the level where it is pointless transferring to me. I continue to be the higher earner between us. It states that he will stop transferring the allowance to me at end of april 2018- will we have to pay any of the allowance back?
    Your husband will just continue to pay the additional tax through his PAYE until the end of the tax year (5th April, not end of April) and you will continue to pay less tax through your PAYE. There should be no other tax adjustments needed.
    >:)Warning: In the kingdom of the blind, the one-eyed man is king.
  • shicky
    shicky Posts: 93 Forumite
    First Anniversary First Post Combo Breaker
    Sorry for the basic question on this, my wife is unemployed due to illness and I earn over the limit mention. That said, I put a LOT of money into my pension as obviously with my wife not working, the future is a concern. I assume my pension payments and student loan payments are not considered? If they were, I don't get anywhere near the higher tax bracket?

    I'm assuming we're ineligible but thought it worthwhile to double check
  • Dazed_and_confused
    Dazed_and_confused Posts: 6,458 Forumite
    Uniform Washer
    Student loan isn't relevant but pension usually is.

    What type of pension are you talking about? Company scheme where pension is deducted before tax is calculated, personal pension/SIPP or something else?

    Your wife needs to be careful about which year(s) she applies for if you could benefit. Just because she is unemployed today doesn't necessarily mean she should apply right back to year 1. It is her taxable income in each tax year that is important not her current situation.
  • shicky
    shicky Posts: 93 Forumite
    First Anniversary First Post Combo Breaker
    Dazed_and_confused wrote: »
    Student loan isn't relevant but pension usually is.

    What type of pension are you talking about? Company scheme where pension is deducted before tax is calculated, personal pension/SIPP or something else?

    Your wife needs to be careful about which year(s) she applies for if you could benefit. Just because she is unemployed today doesn't necessarily mean she should apply right back to year 1. It is her taxable income in each tax year that is important not her current situation.

    The pension does matter? Interesting! This is a company scheme where amounts are deducted before tax. I'm a bit surprised given I could just change my percentage down from 25% and then end up ineligible with my wife for the marriage allowance.

    Thank you for making the point on tax years, I'm usually decent at these things but much better to have someone who has been through it before point out the common pitfalls.
  • Dazed_and_confused
    Dazed_and_confused Posts: 6,458 Forumite
    Uniform Washer
    This is a company scheme where amounts are deducted before tax

    So you cannot deduct them, simply because they are already deducted in working out your taxable salary, for example

    Annual Salary £45,000
    10% pension contribution £4,500
    Taxable salary £40,500

    It is the £40,500 which matters and that will be on your P60, you cannot deduct the contribution again.
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