New tax allowance - UK

For discussion, news, comments, questions and information about Crete & Greece.
moggieman
Posts: 526
Joined: Thu Jun 07, 2007 11:30 am
Location: pano stalos
Contact:

New tax allowance - UK

Postby moggieman » Wed Jan 25, 2017 5:16 pm

Not directly to do with Crete but, who likes paying tax

An easy big win for millions of you, if married or in a civil partnership. The marriage tax allowance is worth up to £432, takes 5 mins to sort, yet a huge 2.7m eligible couples haven't claimed. Our Marriage Tax Allowance guide explains all.

OK, so how do we actually apply? 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.

YoMo2
Posts: 892
Joined: Sat Mar 16, 2013 11:07 am
Location: Milatos, Lasithi

Re: New tax allowance

Postby YoMo2 » Thu Jan 26, 2017 8:55 am

Moggieman, could you elaborate? You've lost me.

Andrew
"It's all in the implementation"

BST
Posts: 319
Joined: Wed Jul 10, 2013 3:29 pm

Re: New tax allowance

Postby BST » Thu Jan 26, 2017 11:21 am

News to me as well! Could have done with it a few years ago but not eligible now. Go on HMRC website and its very clear. It was introduced in April 2015.

moggieman
Posts: 526
Joined: Thu Jun 07, 2007 11:30 am
Location: pano stalos
Contact:

Re: New tax allowance

Postby moggieman » Thu Jan 26, 2017 1:49 pm

Its a new introduction.
If one of the partners is paying tax and the other not or not using all their tax allowances. The higher tax payer can transfer some of his tax liability to the lower partner. It came in for the year 2015 saves about £400 and can be claimed back for a year.


You apply on line at https://www.gov.uk/marriage-allowance/how-it-works Its really easy. .

Carolina
Site Admin
Posts: 2856
Joined: Thu Jul 24, 2003 11:53 pm
Location: Chania, Crete
Contact:

Re: New tax allowance - UK

Postby Carolina » Thu Jan 26, 2017 5:29 pm

I've updated the subject of this post to include 'UK' - I assume this is only for UK tax residents moggieman?

moggieman
Posts: 526
Joined: Thu Jun 07, 2007 11:30 am
Location: pano stalos
Contact:

Re: New tax allowance - UK

Postby moggieman » Thu Jan 26, 2017 8:00 pm

Any couple paying U.K tax.

Wintersid
Posts: 11
Joined: Wed Sep 04, 2013 2:47 pm
Location: Kalives

Re: New tax allowance - UK

Postby Wintersid » Thu Jan 26, 2017 8:14 pm

I agree with Moggieman,
This is extremely easy to do, I found out about it a week ago, went to the appropriate online site (as stated above), and completed the form in about 2 minutes.

The Tax allowance started in 2015, I will get a rebate for the 2015/2016 tax year in the form of a cheque and a change in my tax code to follow.
Sid Winter

Kilkis
Posts: 8776
Joined: Sat Apr 21, 2007 3:58 pm
Location: Near Chania

Re: New tax allowance - UK

Postby Kilkis » Fri Jan 27, 2017 12:02 am

Carolina wrote:...I assume this is only for UK tax residents moggieman?


I would guess not necessarily, although I don't know for sure since it doesn't affect me. There are people who are classed as tax resident in Greece but who have income that remains liable for tax in the UK. They still have a personal allowance in the UK that they can offset against their UK tax liability. I can't think of any reason why such people shouldn't be able to make use of this allowance as well.

Warwick

moggieman
Posts: 526
Joined: Thu Jun 07, 2007 11:30 am
Location: pano stalos
Contact:

Re: New tax allowance - UK

Postby moggieman » Fri Jan 27, 2017 12:11 am

Old sayings comes to mind.

Use it or lose it. If you dont try you dont get.

YoMo2
Posts: 892
Joined: Sat Mar 16, 2013 11:07 am
Location: Milatos, Lasithi

Re: New tax allowance - UK

Postby YoMo2 » Fri Jan 27, 2017 9:19 am

So, just to be clear. One partner is paying UK tax, the other is not. The first can transfer some of their tax-free allowance to the one not paying tax? Presumably this would be done by adjustment to the first persons tax code?

Andrew
"It's all in the implementation"

Kilkis
Posts: 8776
Joined: Sat Apr 21, 2007 3:58 pm
Location: Near Chania

Re: New tax allowance - UK

Postby Kilkis » Fri Jan 27, 2017 10:02 am

No. I think it is the other way round. One person has an income bigger than his/her tax free allowance so he/she is paying tax on the difference. His/her partner has no income (or possibly income less than her/his tax free allowance?) so is paying no tax and her/his tax free allowance is being wasted. Under this scheme she/he can transfer some of the unused tax free allowance to the one who is paying tax and so reduce their tax allowance.

It is done to correct an anomaly. Take two couples. The first couple both work and both earn £11,000 per year after deducting National Insurance. They pay no tax because the tax free allowance of each is £11,000. In the other couple one goes to work and earns £22,000 after deducting NI while one stays at home. The person going to work would pay £2,200 tax. Both couples have the same gross income but a very different tax burden.

Warwick

scooby
Posts: 1094
Joined: Thu Mar 04, 2010 6:54 pm
Location: Agia Nr Chania

Re: New tax allowance - UK

Postby scooby » Fri Jan 27, 2017 3:22 pm

Men in suits will always make you pay.

bobscott
Posts: 2066
Joined: Wed Aug 05, 2009 5:36 pm
Location: Kokkino Horio

Re: New tax allowance - UK

Postby bobscott » Fri Jan 27, 2017 3:44 pm

Kilkis wrote:No. I think it is the other way round. One person has an income bigger than his/her tax free allowance so he/she is paying tax on the difference. His/her partner has no income (or possibly income less than her/his tax free allowance?) so is paying no tax and her/his tax free allowance is being wasted. Under this scheme she/he can transfer some of the unused tax free allowance to the one who is paying tax and so reduce their tax allowance.

It is done to correct an anomaly. Take two couples. The first couple both work and both earn £11,000 per year after deducting National Insurance. They pay no tax because the tax free allowance of each is £11,000. In the other couple one goes to work and earns £22,000 after deducting NI while one stays at home. The person going to work would pay £2,200 tax. Both couples have the same gross income but a very different tax burden.

Warwick


Spot on Warwick. Just done it. Not celebrating until cheque and new tax code arrive! Bob.
Yesterday today was tomorrow. Don't dilly dally!

moggieman
Posts: 526
Joined: Thu Jun 07, 2007 11:30 am
Location: pano stalos
Contact:

Re: New tax allowance - UK

Postby moggieman » Fri Jan 27, 2017 4:03 pm

Bob
Am i on for a commision. ???

bobscott
Posts: 2066
Joined: Wed Aug 05, 2009 5:36 pm
Location: Kokkino Horio

Re: New tax allowance - UK

Postby bobscott » Fri Jan 27, 2017 6:57 pm

moggieman wrote:Bob
Am i on for a commision. ???


well........!!

What surprises me is that it completely slipped by my radar system. I like to think I can keep on top of some of these things, but obviously totally missed that one. Also surprised not to have seen more of a media fuss about it. Perhaps I was having an off week at the time?

Thanks anyway. Bob.
Yesterday today was tomorrow. Don't dilly dally!


Return to “General Discussion & News”

Who is online

Users browsing this forum: Bing [Bot] and 25 guests