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BS: Marriage allowance reminder from HMRC
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Subject: BS: Marriage allowance reminder from HMRC From: Bonzo3legs Date: 16 Feb 21 - 04:28 AM HMRC are reminding married couples and people in civil partnerships that they may be able to take advantage of the marriage allowance and claim a tax refund before the end of the current tax year. Marriage allowance offers individuals the chance to transfer part of their personal allowance to their husband, wife or civil partner, which could reduce their tax by up to £250 a year. For some couples, this could mean a backdated payment of up to four years of claims which could be as much as £1,188. HMRC are encouraging claims to be made directly through their online portal. Further details can be found in the HMRC press release at https://www.gov.uk/government/news/give-your-loved-one-a-tax-break-this-valentines-day. |
Subject: RE: BS: Marriage allowance reminder from HMRC From: Steve Shaw Date: 16 Feb 21 - 06:35 AM That only applies if one of the couple earns less than the personal allowance, doesn't it? |
Subject: RE: BS: Marriage allowance reminder from HMRC From: Bonzo3legs Date: 16 Feb 21 - 08:34 AM Yes that's correct. A tax saving can be made even if the lower paid has to pay a little tax as follows: Your income is £11,500 and your Personal Allowance is £12,500, so you do not pay tax. Your partner’s income is £20,000 and their Personal Allowance is £12,500, so they pay tax on £7,500 (their ‘taxable income’). This means as a couple you are paying Income Tax on £7,500. When you claim Marriage Allowance you transfer £1,250 of your Personal Allowance to your partner. Your Personal Allowance becomes £11,250 and your partner gets a ‘tax credit’ on £1,250 of their taxable income. This means you will now pay tax on £250, but your partner will only pay tax on £6,250. As a couple you benefit, as you are only paying Income Tax on £6,500 rather than £7,500, which saves you £200 in tax. |
Subject: RE: BS: Marriage allowance reminder from HMRC From: punkfolkrocker Date: 16 Feb 21 - 09:10 AM What if the low income partner is on benefits, or no income at all...??? |
Subject: RE: BS: Marriage allowance reminder from HMRC From: Bonzo3legs Date: 16 Feb 21 - 01:08 PM Still applies as far as I know, any tax saving is good news!! |