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  • FIRST POST
    • Former MSE Sam M
    • By Former MSE Sam M 2nd Jun 15, 4:39 PM
    • 238Posts
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    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



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    Thanks folks ,
Page 61
    • Consumerist
    • By Consumerist 11th Apr 18, 4:43 PM
    • 4,983 Posts
    • 2,474 Thanks
    Consumerist
    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.
    Originally posted by thermalboyz
    As I understand it:-
    1) The benefit of a company car is included in your taxable income
    2) Additional contributions to your pension will reduce your taxable income
    3) Not sure. It would be wise to apply again and wait for HMRC to tell you whether it was necessary.
    Warning: In the kingdom of the blind, the one-eyed man is king.
    • thermalboyz
    • By thermalboyz 11th Apr 18, 5:00 PM
    • 24 Posts
    • 7 Thanks
    thermalboyz
    Thank you, shall adjust my pension contributions soon. I wish I did it last year and put more in.
    • shilts
    • By shilts 11th Apr 18, 6:48 PM
    • 66 Posts
    • 3 Thanks
    shilts
    Unfortunately my mother in law passed away at the end of March . Having spoken to my father in law it turns out that she was only receiving about £80 a week pension . As my father in law was paying tax on his pensions it occurred to me that it might be possible for him to transfer some of her unused tax allowance for past years . Can anyone please tell me whether this is possible for him to do ? Also , if it is possible can it be done for past years without obviously claiming for this current tax year , many thanks ?
    • polymaff
    • By polymaff 11th Apr 18, 6:50 PM
    • 2,334 Posts
    • 1,030 Thanks
    polymaff
    2) Additional contributions to your pension will reduce your taxable income
    Originally posted by Consumerist
    No, they'll increase his basic-rate-band.
    • polymaff
    • By polymaff 11th Apr 18, 6:58 PM
    • 2,334 Posts
    • 1,030 Thanks
    polymaff
    Another update to MSE's Marriage Allowance article and the statement "One of you needs to be a non-taxpayer", is still there.

    When will this zombie untruth be laid to rest?

    How about it, MSE Sam?
    • Consumerist
    • By Consumerist 11th Apr 18, 7:19 PM
    • 4,983 Posts
    • 2,474 Thanks
    Consumerist
    Unfortunately my mother in law passed away at the end of March . Having spoken to my father in law it turns out that she was only receiving about £80 a week pension . As my father in law was paying tax on his pensions it occurred to me that it might be possible for him to transfer some of her unused tax allowance for past years . Can anyone please tell me whether this is possible for him to do ? Also , if it is possible can it be done for past years without obviously claiming for this current tax year , many thanks ?
    Originally posted by shilts
    From the <Low Incomes Tax Reform Group>
    Note that if you did not claim the marriage allowance before their death, you can still claim it after the death for any year in which you were married or in a civil partnership with each other, provided that you do so within four years of the end of the relevant tax year.
    Warning: In the kingdom of the blind, the one-eyed man is king.
    • Ellydryburgh86
    • By Ellydryburgh86 11th Apr 18, 8:37 PM
    • 1 Posts
    • 0 Thanks
    Ellydryburgh86
    Hi folks,

    Just a heads up. If you start working contact them straight away to cancel the transfer. I had totally forgot i was doing the transfer and my PA was only 10350 and ive been working for a tax year now and been paying more tax than i needed to !!!128533;.. only just realised as i noticed my tax code was wrong as i knew it should have been 1150L but it was 1035N.

    Just wanted to let you all know and not to make the same mistake as me.

    Have a lovely night.
    Elly !!!9786;
    • shilts
    • By shilts 11th Apr 18, 9:13 PM
    • 66 Posts
    • 3 Thanks
    shilts
    Thanks for your help !!!55357;!!!56397;
    • Dazed and confused
    • By Dazed and confused 11th Apr 18, 9:24 PM
    • 3,304 Posts
    • 1,667 Thanks
    Dazed and confused
    Ellydryburgh86

    Interesting. Are you getting the extra tax back for last year or just a new tax code (1185L?) for the current tax year?
    • Retro_Bunny
    • By Retro_Bunny 11th Apr 18, 9:27 PM
    • 628 Posts
    • 567 Thanks
    Retro_Bunny
    Another update to MSE's Marriage Allowance article and the statement "One of you needs to be a non-taxpayer", is still there.

    When will this zombie untruth be laid to rest?

    How about it, MSE Sam?
    Originally posted by polymaff
    Please can you expand on this?

    We've never claimed as my wife earns £12024 a year.
    However she has deductions from her pay pre-tax, which bring her taxable earnings down to around £11,400, hence she doesn't pay income tax at all.

    Albeit for a smaller benefit than most, are we eligible to apply?
    --- Warning: Grumpy Old Man in Training ---
    • Dazed and confused
    • By Dazed and confused 11th Apr 18, 9:31 PM
    • 3,304 Posts
    • 1,667 Thanks
    Dazed and confused
    shilts

    As my father in law was paying tax on his pensions it occurred to me that it might be possible for him to transfer some of her unused tax allowance for past years . Can anyone please tell me whether this is possible for him to do ? Also , if it is possible can it be done for past years without obviously claiming for this current tax year

    The last budget changed thinks so an application can be made even after one of the couple had died.

    He needs to be careful how it is done though. He cannot apply as that would leave him with a tax bill (the person applying can only ever pay the same or more tax, never less).

    What he needs to do is apply on behalf of your late MIL. He then receives the benefit of the Marriage Allowance tax reduction.
    • Dazed and confused
    • By Dazed and confused 11th Apr 18, 9:40 PM
    • 3,304 Posts
    • 1,667 Thanks
    Dazed and confused
    Please can you expand on this?

    We've never claimed as my wife earns £12024 a year.
    However she has deductions from her pay pre-tax, which bring her taxable earnings down to around £11,400, hence she doesn't pay income tax at all.

    Albeit for a smaller benefit than most, are we eligible to apply?


    There is no income limit applicable to Marriage Allowance, it's about which tax rates you pay. If she isn't a higher rate payer then she could apply but the benefit for you as a couple does depend on both your incomes.

    I presume the "deductions" you refer to are pension contributions so if her P60 pay figure for last year is £11,400 then you would benefit as a couple providing you pay enough tax. If not pension then what are the deductions?

    Your wife would get a tax bill of £210 and you would get a refund of about £228 assuming you had otherwise paid the correct tax and weren't a higher rate payer yourself.

    If the £11,400 is for the current tax year then she would have £148 to pay (through her wages) and you would get a tax reduction of £238.
    • Consumerist
    • By Consumerist 11th Apr 18, 9:48 PM
    • 4,983 Posts
    • 2,474 Thanks
    Consumerist
    If the £11,400 is for the current tax year then she would have £148 to pay (through her wages) and you would get a tax reduction of £238.
    Originally posted by Dazed and confused
    You just pipped me to the post. (No pun intended).

    But, I agree with your figures.
    Warning: In the kingdom of the blind, the one-eyed man is king.
    • jimmo
    • By jimmo 11th Apr 18, 11:03 PM
    • 2,000 Posts
    • 2,423 Thanks
    jimmo
    Unfortunately my mother in law passed away at the end of March . Having spoken to my father in law it turns out that she was only receiving about £80 a week pension . As my father in law was paying tax on his pensions it occurred to me that it might be possible for him to transfer some of her unused tax allowance for past years . Can anyone please tell me whether this is possible for him to do ? Also , if it is possible can it be done for past years without obviously claiming for this current tax year , many thanks ?
    Originally posted by shilts
    He needs to phone HMRC. See "If your partner has died since 5 April 2015" here.
    https://www.gov.uk/marriage-allowance
    • thermalboyz
    • By thermalboyz 12th Apr 18, 7:41 AM
    • 24 Posts
    • 7 Thanks
    thermalboyz
    No, they'll increase his basic-rate-band.
    Originally posted by polymaff
    Thanks, care to explain further
    • polymaff
    • By polymaff 12th Apr 18, 9:28 AM
    • 2,334 Posts
    • 1,030 Thanks
    polymaff
    No, they'll increase his basic-rate-band.
    Originally posted by polymaff
    Thanks, care to explain further
    Originally posted by thermalboyz
    For MAT eligibility reasons you are trying to avoid being classified as a higher rate taxpayer. That happens when your taxable income exceeds your personal allowances plus your BRB (basic-rate-band). HMRC process pension contributions out of higher rate income by extending the BRB so the contributions fall within the BRB.

    So no reduction in your taxable income but an increase off the threshold at which you become a higher rate taxpayer.
    • polymaff
    • By polymaff 12th Apr 18, 9:51 AM
    • 2,334 Posts
    • 1,030 Thanks
    polymaff
    Another update to MSE's Marriage Allowance article and the statement "One of you needs to be a non-taxpayer", is still there.

    When will this zombie untruth be laid to rest?

    How about it, MSE Sam?
    Originally posted by polymaff
    Please can you expand on this?

    We've never claimed as my wife earns £12024 a year.
    However she has deductions from her pay pre-tax, which bring her taxable earnings down to around £11,400, hence she doesn't pay income tax at all.

    Albeit for a smaller benefit than most, are we eligible to apply?
    Originally posted by Retro_Bunny
    Just an attempt to get HMRC and all the media who slavishly follow HMRC's nonsense guidance to recognise that they are, for UK-based Income taxpayers, completely wrong. For this, overwhelming, majority the income criteria are that the taxpayer electing for MAT must not be a higher-rate taxpayer before or after the election, and that the spouse must not be a higher-rate taxpayer beforehand.

    There are cases where someone with £40k taxable would benefit from electing for MAT - and not just one or two cases but thousands. Maybe not the full £238, but a healthy sum.

    What HMRC cannot do is to admit they were wrong; what the media cannot do is to admit that they unthinkingly parrot utter nonsense.

    No change there, then.
    • Kyrae
    • By Kyrae 12th Apr 18, 10:28 AM
    • 462 Posts
    • 409 Thanks
    Kyrae
    Hiya! Just wondered how long folks have had to wait to receive their cheque through the post for back dated years?

    I applied in November and tax codes were changed within a couple of weeks and my husband received some tax back for the current year through his wages, but we're still waiting for a cheque for previous years. I just rang HMRC helpline and they said the previous years won't be paid until the end of this tax year so it will be around the start of May probably. Is this right?
    • Consumerist
    • By Consumerist 12th Apr 18, 10:32 AM
    • 4,983 Posts
    • 2,474 Thanks
    Consumerist
    For MAT eligibility reasons you are trying to avoid being classified as a higher rate taxpayer. That happens when your taxable income exceeds your personal allowances plus your BRB (basic-rate-band). HMRC process pension contributions out of higher rate income by extending the BRB so the contributions fall within the BRB.

    So no reduction in your taxable income but an increase off the threshold at which you become a higher rate taxpayer.
    Originally posted by polymaff
    An interesting quirk of the system.

    I assume this is intended to provide that tax relief on pension contributions are at basic rate only.
    Warning: In the kingdom of the blind, the one-eyed man is king.
    • thermalboyz
    • By thermalboyz 12th Apr 18, 11:21 AM
    • 24 Posts
    • 7 Thanks
    thermalboyz
    For MAT eligibility reasons you are trying to avoid being classified as a higher rate taxpayer. That happens when your taxable income exceeds your personal allowances plus your BRB (basic-rate-band). HMRC process pension contributions out of higher rate income by extending the BRB so the contributions fall within the BRB.

    So no reduction in your taxable income but an increase off the threshold at which you become a higher rate taxpayer.
    Originally posted by polymaff
    Thanks Polymaff, what I am trying to achieve is both to get the MAT and reduce total to below Higher rate earner. I am basically over the line of higher earner slightly where my personal allowance brought the total over about £1k. I am tying to find a way to not cross the line by adjust the pension to make it before 40% and below the MAT limit.

    I will investigate more in details before I make any changes. This is quite confusing and will need a thorough breakdown and understanding how it works.

    Thanks again and really appreciate your input.
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