# Some couples can save on tax



## Easyriders (May 16, 2011)

Apologies if someone has already posted on this, but do you know about the Marriage allowance?

If eligible, you can save £212 a year on your tax bill:

https://www.gov.uk/marriage-allowance-guide

Don't think it's had a lot of publicity. Linda


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## Penquin (Oct 15, 2007)

MrsW made a 10 minute call to the tax office and got the result of te transfer of personal allowance rapidly, easily and with a great deal of advice and help from the tax office - well worth doing IMO.

Dave


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## HarleyDave (Jul 1, 2007)

As existing pensioners with some rental income (one flat already in wife's name) we don't qualify :crying:

Happily it's not an issue now :wink2:- but it could have helped out when I was on "City money" and she was a "homemaker" :withstupid:

Cheers

Dave


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## clianthus (Jul 8, 2006)

Easyriders said:


> Apologies if someone has already posted on this, but do you know about the Marriage allowance?
> 
> If eligible, you can save £212 a year on your tax bill:
> 
> ...


We did this online last week, it was really easy to do and the confirmation Notice of Coding arrived today.

It definitely hasn't had much publicity, but certainly worth doing if you fit the criteria.


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## Devonboy (Nov 19, 2009)

Takes about 5 minutes online if you have the applicants P60 to hand & the partners NI details. Email receipt followed about 5 minutes after the application made. New tax code to be passed to the employer/pension provider & posted to your home address.


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## dovtrams (Aug 18, 2009)

We did it as soon as it came in last year, it was announced in the budget and Martin Lewis of that money advice company gave all the details. It was easy to get it sorted. If you don't already get Martin's weekly email you should; there is always good advice and some good offers in it.

Dave


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## Mrplodd (Mar 4, 2008)

Simple process, Mrs P did it some while ago, I now have "her" allowance (or some of it) Registered against the tax liability I have on my pension.

It's not a lot but it's better off in our pocket then HMRC's 

Andy


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## deefordog (Dec 31, 2013)

Damn, Mrs DFD only works part time so below the lower threshold. Thanks for the link anyway.


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## aldra (Jul 2, 2009)

Didn't follow that

The lowest income has to be less tha 10thousand + a bit?? 
Aldra


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## rayc (Jun 3, 2008)

deefordog said:


> Damn, Mrs DFD only works part time so below the lower threshold. Thanks for the link anyway.


Not being personal but are you saying neither of you has any income above £10,601 pa?


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## aldra (Jul 2, 2009)

I'm totally confused

Doesn't take much

Does this just apply if one partner works andearnsbelow the tax threshold ?
I thought that was always the case that you could transfer tax allowances to your spouse 
As long as they too were below the tax threshold 

Aldra


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## rayc (Jun 3, 2008)

aldra said:


> I'm totally confused
> 
> Doesn't take much
> 
> ...


It applies where one earns over the £10601 and the other dosn't.


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## aldra (Jul 2, 2009)

It always did 

Didn't it?

Would it work with pension "earnings "

If one had a small pension?
Not in our case but maybe someone else could benefit

Aldra


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## rayc (Jun 3, 2008)

aldra said:


> It always did
> Didn't it?
> Aldra


Perhaps in the far distance past? As far back as I can remember each person received their own Personal Tax Allowance and if they never used it then it was lost forever.


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## Devonboy (Nov 19, 2009)

Easyriders said:


> Apologies if someone has already posted on this, but do you know about the Marriage allowance?
> 
> If eligible, you can save £212 a year on your tax bill:
> 
> ...


Also the saving is backdated to the start of the tax year "It doesn't matter _when_ in this tax year you register or apply, as you'll get the full financial benefit for the full tax year."


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## deefordog (Dec 31, 2013)

rayc said:


> Not being personal but are you saying neither of you has any income above £10,601 pa?


Correct Ray :wink2:.


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## Pudsey_Bear (Sep 25, 2008)

Discriminatory against sinners then


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## kenny (Jun 4, 2005)

thanks been meaning to do this for ages kenny


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## aldra (Jul 2, 2009)

rayc said:


> Perhaps in the far distance past? As far back as I can remember each person received their own Personal Tax Allowance and if they never used it then it was lost forever.


Gosh I'm really getting old

It never applied to us anyway

And still doesn't

Aldra


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## patp (Apr 30, 2007)

Is this going to last for next year and beyond? I went back to work last year so won't apply this year but it may do next year as I now only get the state pension and a VERY small company one. 


As the wording is "transfer" it sounds as though they are taking a tax allowance away from one person and giving it to another which would not make sense would it? It would mean the higher earner would pay more tax wouldn't it?


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## billybilbo (Oct 7, 2007)

*some couples can save on*

I thought the tax threshold went up to over 13k on the last budget so will it mean anyone under that is eligible. So lot as they are married and there partner is paying tax.?


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## Mrplodd (Mar 4, 2008)

Mrs P has given up full time employment (nice!) and she works part time on an as and when basis, I have a pension which I pay income tax on.

I have been able to "transfer" SOME of Mrs P's tax allowance onto my PAYE code (a percentage, not all) so I now pay LESS income tax than I would have done prior to pinching some of Mrs P's allowance. It's not a fortune and I am certainly not going to buying a Ferarri on the extra I am getting BUT at least it's a little extra in "our" pockets rather than HMRC's 

We do have to keep a bit of an eye on Mrs P's earnings to make sure she doesn't earn enough to start paying tax. 

If you ring HMRC they are very helpful on this subject (once they answer the phone that is, try first thing in the morning!)

Andy


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## Devonboy (Nov 19, 2009)

billybilbo said:


> I thought the tax threshold went up to over 13k on the last budget so will it mean anyone under that is eligible. So lot as they are married and there partner is paying tax.?


£10,600 this tax year, £11,000 for tax year 2016/2017.


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## Mrplodd (Mar 4, 2008)

I think the important thing is that one of the couples earnings must remain UNDER the point at which income tax becomes payable. 

For example (theoretical numbers being used) 

If one person (me) earns 20K (my pension) I am going to pay income tax on anything over the tax threshold (let's say it's 10K which I know is wrong but bear with me) So I pay tax on my pension between 10 & 20K

Now if Mrs P's earnings are below the 10K threshold (say 5K) I can claim the difference between what she earns (5K) and HER tax threshold of 10K so, in theory I can then earn up to 15k (my 10 plus her transfer of 5k) BEFORE I start paying income tax.

The figures above are nothing like correct, I have just used them to illustrate the principle involved. You need to speak to HMRC to set it up but it's NOT difficult, just fiddly.

Andy


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## Devonboy (Nov 19, 2009)

Mrplodd said:


> I think the important thing is that one of the couples earnings must remain UNDER the point at which income tax becomes payable.
> 
> For example (theoretical numbers being used)
> 
> ...


The max you can transfer of the spouse's allowance is £1060.


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## dovtrams (Aug 18, 2009)

Not difficult. We all get a tax free allowance (apart from those earning over £100,000.00). If you spouse does not earn enough to use their full tax allowance, they can transfer up to £1060 to the other person thereby cutting down the amount of tax they pay. HMRC are very helpful with sorting this out when you get in touch with them.

Dave


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