Marriage Tax Relief

[uncletom6]

I keep seeing adverts to claim marriage tax relief. My husband is self employed. Profit around £25k. I earn £11,500 pa. Is it worth me trying to make a claim? I'm skeptical as it just seems a bit too good to be true!

[Fibonacci]

Details of Marriage Tax Allowance from Martin Lewis can be found here:
https://www.moneysavingexpert.com/family/marriage-tax-allowance/

[fiction-factory]

https://www.gov.uk/marriage-allowance
Looks like you may be able to transfer £1000 (£12500-£11500) of your allowance- that's £200 a year tax saving potentially

[AuntPollyGrey]

Marriage tax relief only really works if one spouse earns very little or nothing. It means the spouse earing the most can take 10% of their spouses allowance ( £1,250) As you are earning only £1000 less than the allowance it won't be worth your while see here:

https://www.tax.service.gov.uk/marriage-allowance-application/benefit-calculator/?_ga=2.209619346.1424739330.1589275042-1778676025.1586104027

[fiction-factory]

You can backdate a few years too.
I'm not sure whether the self employed aspect changes things though. Does he pay tax at basic rate (20%) on profits?

[Ryzen]

£200 is worthwhile in many cases.

[uncletom6]

Thanks for the replies. Yes im pretty sure he pays 20%

[fiction-factory]

Is the £11500 your only income? You would need to add any pensions

[fiction-factory]

Where do you see the adverts? Make sure you put any claim direct to HMRC- don't use an intermediary who will take a chunk.

[AuntPollyGrey]

FF makes a very important point. HMRC never ever advertise.

[teacher1]

https://www.gov.uk/marriage-allowance

I applied for this last week ...... today I received a cheque for £900.00 and letter from my pension provider that this month's pay would include £225 extra. ;o)

[AuntPollyGrey]

Another point. He can take 10% of your tax allowance which is £1250. You earn less than your allowance of £12,500, but you only by £1000. If you give him 10% of your tax allowance he will pay less tax but you will pay more. Hardly worth the hassle

[AuntPollyGrey]

Teacher -its a very good scheme if one spouse earns only a small amount or is not working/paying Income Tax.

[uncletom6]

Yes it was from the hmrc website. £11500 is my only income.

[AuntPollyGrey]

//I keep seeing adverts to claim marriage tax relief//
???

[fiction-factory]

The transfer can be done the other way though APG so it's a saving of £200 pa in this case- worth doing

[AuntPollyGrey]

Why would someone earning £25k give 10% of their tax allowance to someone earning £11.5K?

[fiction-factory]

I think you need to look at a case study APG to check how this works

[AuntPollyGrey]

FF yes thanks I've looked at the case study and can see what you mean now.