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I’m claiming Marriage Allowance in the morning….ding dong the bells are gonna chime

20th Feb 2015
QC Development Keytime
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Marriage Allowance (previously referred to as Transferable Allowances for Married Couples and Civil Partners) is being introduced from April 2015.

Registering your interest for marriage allowance is simple and quick – and it is all done at www.gov.uk/marriage-allowance.

There’s guidance for couples to check their eligibility for the new allowance, and registration apparently takes only three minutes. From April those who have registered their interest will be invited to be among the first to apply for the allowance using the new online service. Those who choose not to register early will not lose out; they will be able to make an application later in 2015-16 and still receive the full annual allowance.

For more details, see the announcement ‘Registration opens for new married couples tax break’ at

https://www.gov.uk/government/announcements?departments%5B%5D=hm-revenue-customs.

Just to remind you in case you’ve forgotten since our original tax tip on this subject the details are:

Where neither spouse is liable to income tax above the basic rate, individuals will be able to transfer part of their tax free personal allowance to their spouse or civil partner.

For the 2015 - 2016 tax year £1,060 will be transferable, representing a saving of up to £212 per year for eligible couples.

Both the transferor and recipient’s tax codes will be amended using two new code suffixes:

• M will be used for the spouse/civil partner receiving the transferred allowance

• N will be used for the spouse/civil partner transferring the allowance.

These new tax suffixes will not be used on tax codes prior to April 2015 and were not included on the P9 tax codes issued for 2015-16. The suffixes will be used on P6 coding notices from April and, in due course, P9 and P9X uprating notices.

Click here to download a PDF of this tax tip

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Replies (4)

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By Marion Hayes
23rd Feb 2015 13:30

Warning

You do not say that if you already get Married Couples allowance you will not qualify for any extra allowance

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By david.davidreid.biz
26th Feb 2015 10:13

Self-Employed and no PAYE code?

What about the self-employed? Are they left out of this as they do not have a PAYE code? Seems a bit unfair!

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By Andrew Mann Keytime
27th Feb 2015 16:56

Marriage allowance

In response to the above I can only say -

 

Marion, yes that is an oversight on my part.

 

I have read the last Budget in full as a punishment...

 

David, we were only really highlighting the new claim system for those on PAYE.  

 

Presumably the self-employed will need to make a claim on a 2016 tax return.

(But they could of course make a claim to reduce POA in advance of that....something else to consider for those of you in practice)

 

 

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By Marion Hayes
28th Feb 2015 13:10

@handymann7088

Not a criticism - just an aspect I hadn't realised until looking to register an old couple I know who have spare allowances in wife's name, and pension over the personal allowance by about £500.

They don't have much money so extra allowances would have been a godsend, but they already have MCA

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