Marriage Allowance (1 Viewer)

[Easyliving]

Okay, its nothing to do with motorhomes but might be useful info for some funsters.

We recently applied for marriage allowance (details here), filling in the simple form. To get this you have be married or in a civil partnership with one of you not paying tax and the other earning less than £45k a year.

You can transfer some of the tax allowance from the non tax payer to the one having to shell out. Best of all you can backdate your claim for 2 years - we got a very nice cheque from HMRC for £433.

Worth looking at if you fit the criteria.

Paul

 

[Rob and Val]

Yes, Paul, we did this a couple of years ago. It's well worth filling in the paperwork.

 

[treetops1]

This rule came out a couple of years ago ,It was advertised somewhere so I applied and reduced my tax number and gained about £400 up to now lol.

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[Mr Colpot]

I saw this when it first came out but my salary excluded me then. Now though as my salary hasnt changed in 3 years I can apply for this tax year as the salary threshold has gone up each year so thanks for the reminder Paul @Easyliving

 

[Geo]

I find it far more profitable to let the wife keep and use her own tax allowance

 

[mikebeaches]

It's a handy little tax break, worth slightly more than the winter fuel allowance (for those that are retired) each year. We applied as soon as it became available. Of course don't need to be retired to claim the marriage allowance.

Dead easy and quick to complete the online application.

And as they say, 'every little helps'

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[Ninjabob]

Also/Same thing:

Marriage Allowance lets you transfer £1,150 of your Personal Allowance to your husband, wife or civil partner - if they earn more than you. This reduces their tax by up to£230 in the tax year (6 April to 5 April the next year). To benefit as a couple, you (as the lower earner) must have an income of £11,500 or less.


I knew there was a reason for being married!

 

[Welsh girl]

I am informed that even when widowed you can claim this back which is what I've done.
It's a new thing since November 29th 2017.
After seeing it on a program, Martin's money, I decided to claim it,still waiting for a reply after they rang me this week.

 

[Ivory55]

How much does it cost to get married at a regester office ? How long is the pay back period ?

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[Bailey 15]

Does this work if you own a second property, can you transfer ones tax allowance on to that I wonder?

 

[Louis]

I tried this s few months back! They refused point blank to accept my application?
Apparently they won’t accept a sheep as a live in partner

 

[Minxy]

Does this work if you own a second property, can you transfer ones tax allowance on to that I wonder?

Its nothing to do with owning property, it about personal tax allowances, so assuming you get income from your second property owned 50/50 with your partner and the income split 50/50, if you transfer the allowance from the one who doesn't pay tax to the one who does in most cases you'll benefit, eg:

• You own a rental property 50/50 with your partner (both names on the deeds)
• You therefore both 'earn' 50% of the income
• Your partner doesn't pay tax
• You pay tax at 20% rate
• Your partner transfers £1,150 of their allowance to you (assuming they still won't pay tax, or less than you would for the equivalent amount of income)
• You save up to £230 on your tax bill
• They still don't pay tax (assuming they are below their new threshold of £10,350.

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[Minxy]

I've looked into this in quite a bit of detail as we have had a residential rental bungalow for over 11 years now which is owned 50/50 and HAS to be split 50/50 for the income from it, you can't vary the amount unless it is stipulated on the deeds that one has a greater share and therefore the greater part of the income, but now have 2 furnished holiday let lodges (FHL) which are totally different tax wise! Neither of us have income that takes us over the tax threshold at the moment but in April next year it will change as hubby will get a pension that will take him just over on its own so we're looking to change the ownership of the bungalow to just my name so I get all of the income from it and he won't then get taxed on what would have been his 50% share.

Once he IS paying tax I can transfer my 'marriage allowance' to him (it can't be done until one of us is paying tax) and it will reduce his tax 'burden' ... the income from the lodges won't make any difference for a few years due to the Capital Allowance we can claim against them which means no tax to pay on the income from them for a few years ... one BIG benefit of FHLs is that the income can be apportioned however we wish, it doesn't matter that they are in joint names as it is treated as a 'business' and we can split it in whatever proportion we wish.

 

[Bailey 15]

Thank you.
So if I transfer my tax allowance over to hubby to save approx £230, can this be refunded for 2 yrs?

 

[Minxy]

Thank you.
So if I transfer my tax allowance over to hubby to save approx £230, can this be refunded for 2 yrs?

On the face of it if you both qualified for the past 2 years then yes.

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[Bailey 15]

Thank you
Merry Christmas

 

[gus-lopez]

I

Once he IS paying tax I can transfer my 'marriage allowance' to him (it can't be done until one of us is paying tax) and it will reduce his tax 'burden' ....

I don't pay tax & transfer my 10% to the wife, who works, but doesn't pay tax either as earns less than her total personal allowance+ 10% after expenses..

 

[Lot lover]

Does this represent tax avoidance at the budget end of the market?

BTW this paperwork is not necessary in France - we are taxed on our household income.

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[Minxy]

I don't pay tax & transfer my 10% to the wife, who works, but doesn't pay tax either as earns less than her total personal allowance+ 10% after expenses..

Which I think means, if I understand what you are saying correctly, that your wife would pay tax/ could at times go over her own personal allowance, but it balances out during the tax year because you've transferred your 10% to her? If you hadn't transferred your 10% would she in fact pay tax?