Marriage tax allowance: what are the rules? Sam ? If so you may be entitled to a . Yet 3. 2 million of the 4. It's free money, so worth checking. The marriage tax allowance is a still little- known way for couples to transfer a proportion of their personal allowance (the amount you can earn tax- free each tax year) between them. Here's our quick Q& A on how to get it, plus some key information. Who can get it? This is the most important factor as only people with these specific circumstances will be able to apply: You're married or in a civil partnership (just living together doesn't count). One of you needs to be a non- taxpayer, which usually just means earning less than the . This means you'd normally need to earn less than . Don't miss out. What's this about ? The marriage tax allowance started on 6 April 2. For the new tax year starting in April 2. Plus claim it now and it's backdated so many get last year's AND this year's allowance – . The partner who has an unused amount of personal allowance can transfer . It doesn't matter if they have . His full personal allowance for the year is . Her personal allowance increases by ? It really is very simple, and only takes a few minutes; just use the application at HM Revenue & Customs (HMRC). To do it you'll need both your National Insurance numbers, and one of a range of different acceptable forms of ID for the non- taxpayer. If there's a problem doing it via the web just call. It's worth noting you can also only apply for those years in which you both meet the criteria. So if you earned more than the . After going through the application process you'll be notified immediately if you're eligible for the allowance via email (you can apply over the phone too). If you were also eligible for the allowance in the 2. Here are just a few of the tweets we've got on it: Corinne: . The partner who transferred their personal allowance will also receive a new tax code, if employed. If the recipient partner is in self- assessment, it will reduce their self- assessment bill. Get Our Free Money Tips Email! For all the latest deals, guides and loopholes - join the 1. Don't miss out. How will I be paid the backdated money? Whether you apply online or by phone, any money for previous tax years will be sent to you as a cheque. You won't have to tick any boxes or make a special request for this as it'll happen automatically. How do I know if I'm a non- taxpayer? CIFF 2016: “The Salesman” & “Neruda” Festivals & Awards . A dispatch from CIFF on new films by Pablo Larrain and Asghar Farhadi. In general it is simply if your taxable income between 6 April 2. April 2. 01. 7 totals . You might be on maternity leave, self- employed, a volunteer, working part- time, unemployed, working full- time, not working because of health issues, or retired – it doesn't matter.
ABOUT US: The 'Courage to Grow Scholarship' was created to help students realize their college dreams. We don't want the college dreams and plans of so many young men. How will I be paid the backdated money? Whether you apply online or by phone, any money for previous tax years will be sent to you as a cheque. More Cinema Information. Shows For - Monday - Oct 24, 2016. In rare circumstances, your personal allowance (the amount you can earn tax- free) is different – your tax code letter would tell you – such as because you have a company car. This is because you have to transfer . This means that if you've less than . If that happens, you'd end up paying tax on the amount you've gone over. There will still be a net gain for the two of you, just not that much. This is how it works: Part- time Peter decides to put in a few extra shifts at the chippy and his earnings go up to . His full personal allowance for the year is . Meanwhile, Fiona gets an increase in her personal allowance of . This year, the basic personal allowance for most is . So only if the lower earner in the couple earns less than ? As long as you fulfil the eligibility criteria above, you can apply. The only difference is if the recipient partner is in self- assessment, it will reduce their self- assessment bill. I'm having difficulties applying online – what can I do? Some people have reported difficulties applying online. If this is you, call HMRC on 0. What happens if we've applied and then cease to be eligible midway through the tax year? If that happens HMRC will know (you don't need to tell them) and alter your tax code to claw it back via the payroll (or self assessment for the self employed). Don't miss out. What if I've applied in error – will I be fined? Although it's highly unlikely your application would be accepted if you weren't eligible, you still won't be fined. As above, the underpaid tax would be collected through a PAYE code adjustment. No, when you're applying for the current year, it's paid via changing your tax code over the remaining months of the tax year. Can it be backdated? Yes, you will be allowed to claim back up to four years, but it only started in April 2. Your personal allowance will transfer automatically to your partner every year until one of you cancels the marriage allowance or you inform HMRC that your circumstances have changed, eg, because of divorce, employment pushing you into a higher rate tax threshold, or death. If your partner dies after you've transferred . To cancel the allowance, you must contact HMRC. Don't miss out. I've seen on the Government website it says you can't get the marriage tax allowance if you have over ? We've had a few people ask us this question – if this is you, you're probably misreading the situation. It comes from this question on the apply section of the HMRC website: ? That means you can earn . So in that circumstance you could actually earn more than . This is because there's a different, better allowance available to you, that HMRC is phasing out. If one of you is over 8. This could give you a reduction on your tax bill of up to . However, if you're an unmarried couple (even if you're living together), then you get nowt. Is it ever not worth it to apply? If the basic- rate taxpayer only earns a smidgen above the personal allowance and the non- taxpayer just below it then it may not be beneficial. Here's a quick example to show why: Peter earns . If Peter decides to transfer some of his personal allowance to Fiona he'll have no choice but to transfer the full . Meanwhile, the increase Fiona gets in her personal allowance of . This is a Government policy to reward the institution of marriage. It does it because it believes that provides a more stable family. The fact it's a transfer from the non- taxpayer to an earner also indicates a concept of rewarding the perhaps more old- fashioned .
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