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d_a_n1979

Marriage allowance claim (HMRC)

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I wasn't really aware of this till a few days ago, just made an online claim & my wifes now getting a backdated tax refund worth £230 per year. We may also get around £450 back, via cheque, as my official salary is £10000, due to me being employed by my limited company!

Claim it now if you haven't (or at least look into it) :

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

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. 

Your partner’s income is between £11,501 and £45,000 (or £43,000 if you’re in Scotland)

You can backdate your claim to include any tax year since 5 April 2015 that you were eligible for Marriage Allowance.

Edited by d_a_n1979

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1 minute ago, dan101smith said:

Do you not take dividends from your Ltd company?

 

I do, but this is all based on basic salary

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10 minutes ago, dan101smith said:

Have you had that confirmation from someone? Only asking as it doesn't state that anywhere I can see on the HMRC page, it just talks about income.

Did this a few years ago.

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18 minutes ago, dan101smith said:

Have you had that confirmation from someone? Only asking as it doesn't state that anywhere I can see on the HMRC page, it just talks about income.

 

My accountant emailed me this morning to tell me to complete this

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40 minutes ago, GoNz0 said:

Did this a few years ago.

 

+1 

 

A simple form to complete and return.

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So you lower your personal allowance to £10k.

 

Your first £5k of dividends are against the dividend allowance.

 

So you pay tax on an extra £1150 of your dividend income so that your wife doesn't have to pay tax on an extra £1150 of her salary.

 

There's a logic flaw here.

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15 minutes ago, dan101smith said:

So you lower your personal allowance to £10k.

 

Your first £5k of dividends are against the dividend allowance.

 

So you pay tax on an extra £1150 of your dividend income so that your wife doesn't have to pay tax on an extra £1150 of her salary.

 

 

No - it only works if one of you is a low earner.  My Wife works only part time, and doesn't use up all of her personal allowance.  So - she can transfer £1150 of her tax free allowance to me, so I can earn an extra £1150 before paying any tax, saving me £230.

 

The dividend is a separate issue.

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I've no idea; my accountant has told me to do it. I trust him, he's good at what he does... :!:

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I'd heard about this somewhere a few weeks back.

 

But, the higher earner mustn't be earning more than £45k (?)

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