# Married couples tax



## Spacerunner (Mar 18, 2006)

I guess a lot of you already know this but I didn't until my mates accountant daughter told me.
If your spouse/partner earns under a certain amount you can claim the residue of their tax allowance. 
It's all explained in the link and very easy to do. I started the application on line but ran into trouble during a national insurance entry. So I used the phone link and the very helpful young man completed it in no time. 
Don't forget to apply for last year's allowance in retrospect.

https://www.gov.uk/marriage-allowance/how-it-works.


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## dovtrams (Aug 18, 2009)

Been claiming it for over a year now, it was easy and well publicised. That and the £1000 tax free interest makes a big difference. However, it is good to keep mentioning it as I keep talking to people who do not know about it. They must live in some strange unreal world. Maybe if they mentioned these type of things in TV soaps, the message would get over to more people.

Dave


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## GMJ (Jun 24, 2014)

We might get some benefit from this come September when I go down to 2 days work a week :smile2:

The £1k tax free on savings interest also helps too, as already stated

Graham :smile2:


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## TeamRienza (Sep 21, 2010)

I have applied online for the current tax, very straightforward.

I will receive 58 allowances equivalent to about £10 for this year. Partly because we will not receive any inflation related pension increase this year, but at least the registration carries forward year on year where relevant.

I suppose I should be happy that the balance is so small as it is an indication that we are rich beyond our wildest dreams !! My pension is slightly bigger, but not much!

Davy


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## Mrplodd (Mar 4, 2008)

Very easy to do on line BUT you do need a lot of information to hand whilst going through the process.

I would point out that for a spouse you can "transfer" only about 200 of the low (or non) taxpayers tax allowance onto the tax payers one. So that's an additional two grand the tax payer will not be taxed on, hardly a fortune but better in my pocket than the chancellors eh?

To quote a well used phrase "Every little helps" 

Andy


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## aldra (Jul 2, 2009)

Well my pensions exceed that

My work pension and state pension

So I guess I am out

Even though my state pension is crap

Doesn't count the years I was home caring for kids

That was accepted much later

Still matters little to me

Aldra


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## Mrplodd (Mar 4, 2008)

Aldra

I think you have mis understood how it works. A married partner who pays no income tax can transfer 200 points of "their" (unused) taxable allowance to their spouse. That spouse can then earn an additional £2000 tax free!!

Mrs P has a couple of (small) pensions and does some part time work yet she has still been able to transfer some of her tax allowance onto my tax free allowance.

Go for it

Andy


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## Kaytutt (Feb 5, 2013)

Unfortunately if one of the partners is a higher rate taxpayer you cant claim


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## aldra (Jul 2, 2009)

I read it as up to 11TH in earning/income

Surely some tax would be paid on that?

Aldra


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## Easyriders (May 16, 2011)

There seems to be some confusion about this. To clarify, if one spouse is a basic rate tax payer and the other is a non-tax payer (ie, has less income than the basic tax allowance, £11,000 for the tax year 2016-17), then the non tax payer can transfer 10% of his/her tax allowance to their spouse.

So, for eligible couples, this will save £220 this year. Last year, it would save £212.


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## GMJ (Jun 24, 2014)

Easyriders said:


> There seems to be some confusion about this. To clarify, if one spouse is a basic rate tax payer and the other is a non-tax payer (ie, has less income than the basic tax allowance, £11,000 for the tax year 2016-17), then the non tax payer can transfer 10% of his/her tax allowance to their spouse.
> 
> So, for eligible couples, this will save £220 this year. Last year, it would save £212.


Yep - so in effect the tax paying partner has a higher tax threshold i.e. they can earn a bit more without being taxed.

The 'bit' of the non taxpaying partners tax allowance that wasn't being used i.e. the difference between actual earnings/income and the tax threshold (£10,600 for this year and £11,000 as Easyriders says for 2016/17) isn't then wasted...it is transferred to partner 1.

Graham :smile2:


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## Spacerunner (Mar 18, 2006)

I went through the procedure about a month ago and it makes about £30 extra a month difference.


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## dovtrams (Aug 18, 2009)

This allowance is easy to claim and is as follows for this tax year:

You can transfer £1,100 of your Personal Tax Allowance to your other 1/2.

This has the effect of reducing their tax by UP to £220. 

The lower earner must have an income of £11,000 or less.

NOT applicable to higher rate taxpayers.

Just think for most of us on this forum, it will pay your VED or insurance. Great scheme.

Dave


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## patp (Apr 30, 2007)

Thank you - I have just filled it in!


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