Tax

[Le Chat]

Hi. I hope someone can help me here!
My husband earns just enough to put him in the 40% tax bracket. I work part time and earn below the tax threshold. My sister tells me that my portion of tax free allowance can somehow be used to our advantage. How, I don't know! I have been on various websites and all I can find is the married persons tax allowance, which was scrapped years ago. I would ring up the tax office but I don't know what I'm asking for!!
Can any of you lovely AB ers shed any light on this?
Thanks.

[ummmm]

Tell them exactly what you wrote there. The tax office is extremely helpful. They will tell you how it works....as long as it's legal of course :-)

[sandmaster]

If you are both employed as opposed to self employed, your tax allowance is not transferable. It was at one time and the government has been urged to reintroduce it to encourage marriage, but to no avail so far.

[terambulan]

Ring your local tax office for info (they don't ask names or private details). Tell them you're filling in tax returns etc. They will know that anyway, as this is the time for doing it online.

[Ethel]

The only way you can take advantage is to put savings in your name, so you're not paying tax on your interest.

Unused tax allowance is not transferable

[Le Chat]

Thanks all. My sister is acyually a small business advisor, so is not being flippant. I must admit, it seems unlikely to me, but I will call the tax office tomorrow. x

[buildersmate]

Then as a small business advisor, she ought to know better. What she is probably thinking about are the various methods of business partners doing this - typically by employment of spouses in the Ltd Co. situation (there are other methods).
Just make sure all your joint savings (except ISAs) are in your name.