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Money from the tax man
MONEY FROM THE TAX MAN
Under new rules starting from 06th April 2015 it is possible to transfer part of a non taxpayers allowance to their spouse. You need to register your interest by contacting married couples`s allowance at gov.uk/marriage-allowance.You can transfer a maximum of £1060 of the unused allowance which would save a basic rate tax payer the sum of £212 per year. It is backdated to April no matter what part of the tax year you do it.The spouse who receives the transferred allowance will have their tax code altered to reflect their larger personal allowance.A new tax coding will be issued and your pension provider will be informed of the new code.Gov.Uk will send you further details by email after you contact them and you will need both N.I. numbers and details of where your state pension is paid in order for them to confirm identities. UPDATE FOR 2017The Marriage Allowance now lets you transfer £1150 of your £11500 tax free personal allowance to your husband, wife, or civil partner if they earn more than you. This reduces their tax bill by up to £230 a year. If you claimed for 2015 up to 2017 you would have saved £662 in income tax.To benefit the lower earner must have an income of £11500 or less. The other partner must be a basic rate taxpayer with an income of between £11501 and £45000. Couples have until 2020 to backdate their claim to 2015. Contact 0300 200 3300 or www.gov.uk/marriage-allowance.Different rules apply in Scotland.
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