More Money up for Grabs
The start of the new tax year always brings out and increase in personal allowance, and this year is no exception. A £600 increase is not to be sniffed at.
But – there is more good news.
If you are married or in a civil partnership, born after 6th April 1935, and both of you are 20% tax payers, then there is a way of transferring up to £1060 of your tax allowance to your spouse. This is known as the New Marriage Allowance.
If one person earns less than the personal allowance from all sources of income, then they can opt that they transfer up to £1060 of their allowance to their spouse. That means a potential saving for the spouse of £212 in tax. Additional Christmas gifts, a weekend away, a night out together, a classic handbag. All the thing that you could do with this extra gift from the tax man. The people this mostly affects are stay at home mothers, and pensioners.
Now he is not going to give it away without a few hoops to jump through. The person wishing to transfer the allowance needs to register online that they are interested to do the transfer. The registration is a simple process and can be found here:
Once registered, HMRC will call you in April and will take it the application further. Once it is in place, the a new tax code is issued and applied either through PAYE or via self assessment.
If you miss registering in April, you can register any time in the tax year and the code becomes effective for the whole year.
Whats stopping you? If it is tax efficient, go do it !
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