Married tax allowance up to £662 a year now extended to widows/widowers
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Married tax allowance up to £662 a year now extended to widows/widowers

Editor 93
Editor
Found 30th Nov
Hey everyone…. I really hope this doesn’t apply to too many of you but the Budget last week included some small print which extended the married person’s tax allowance to people whose spouse has passed away since April 2015.

To be eligible you need:

To be born after 6 April 1935 and be married or in a civil partnership.
One partner is a non-taxpayer, i.e. earning less than £11,500.
The other is a basic 20% rate taxpayer, i.e. earning £11,500 to £45,000.

You can get it backdated

The marriage tax allowance (MTA) started on 6 April 2015. It was worth:

£212 in year 1
£220 in year 2
£230 in year 3
So, a total of £662 – and if you’re eligible you can get all three years backdated.

How it works

The MTA works by the non-taxpayer transferring 10% of their tax-free personal allowance to their basic rate spouse.

The standard personal allowance – the amount you can earn without paying income tax – is £11,500 for this tax year so 10% is £1,150. The taxpayer now has an extra £1,150 on which they don’t pay 20% tax – gaining £230 over a year.

Budget small print for the bereaved

Last week’s Budget included a new clause that means if your spouse has died since 6 April 2015, and you were eligible for the MTA when they were alive, you can claim the full year’s allowance for each tax year providing they were alive for just one day in that year.

It doesn’t matter if the taxpayer or the non-taxpayer has died; you’re eligible regardless.

The process to make a claim isn’t clear yet – but keep an eye on the HMRC website which should explain all soon.

As I said, I really hope this doesn’t apply to many people as losing your partner is awful. But if it does, it’s worth making a claim.

Top comments

ljbutchik073 h, 31 m ago

be careful to those are not eligible and claiming this as I did a year …be careful to those are not eligible and claiming this as I did a year ago which I did not know at that time and now inland revenue is asking me to pay it back


As they should...

goldust1 h, 26 m ago

There's literally no incentive to be a middle earner in this country.As I …There's literally no incentive to be a middle earner in this country.As I earn around £52k a year I don't get to benefit from this at all (even though it would effectively lift me out of 40% tax).Also, I have to pay back some of my child benefit.Also I can only get tax free childcare vouchers for the lowest amount.The system is weighted to support those at the top and those at the bottom. Stuck in the middle you get nothing


Not sure £52k a year is a middle earner outside of London anyway.You probably have more money available to you than a very large percentage of others even after they have been helped with any form of benefit. You should be happy and proud that you have got your self in a position where you don’t need help financially instead of complaining about it.

There's literally no incentive to be a middle earner in this country.

As I earn around £52k a year I don't get to benefit from this at all (even though it would effectively lift me out of 40% tax).

Also, I have to pay back some of my child benefit.

Also I can only get tax free childcare vouchers for the lowest amount.

The system is weighted to support those at the top and those at the bottom. Stuck in the middle you get nothing
93 Comments

be careful to those are not eligible and claiming this as I did a year ago which I did not know at that time and now inland revenue is asking me to pay it back

I miss out by six months. Hey ho. Such is life. Or death as the case may be.

ljbutchik079 m ago

be careful to those are not eligible and claiming this as I did a year …be careful to those are not eligible and claiming this as I did a year ago which I did not know at that time and now inland revenue is asking me to pay it back


That sucks

yh i did this totally stuff everthing up so cancelled it all

ljbutchik073 h, 31 m ago

be careful to those are not eligible and claiming this as I did a year …be careful to those are not eligible and claiming this as I did a year ago which I did not know at that time and now inland revenue is asking me to pay it back


As they should...

Thanks

Now the budget has gone through can people now earn £46,350 as their upper limit ? As it was £45,000 last year.

This is a Budget proposal, not yet law. On past form HMRC will wait for the Finance Bill 2017-18 to receive Royal Assent before accepting any claims. That means spring next year...

It may sound silly but is there a way to find out how much tax I have paid in 2015/16?

Jiwani803 m ago

It may sound silly but is there a way to find out how much tax I have paid …It may sound silly but is there a way to find out how much tax I have paid in 2015/16?


Look on your wage slips

Yeah. Only if it was saved

Jiwani8010 m ago

It may sound silly but is there a way to find out how much tax I have paid …It may sound silly but is there a way to find out how much tax I have paid in 2015/16?


Yes you can see it online.

Somebody's been watching Martin Lewis

royboy20113 m ago

Somebody's been watching Martin Lewis


I watch him all the time





oh wait no I don't, as he's face screams "punch me really hard"

Jiwani8027 m ago

It may sound silly but is there a way to find out how much tax I have paid …It may sound silly but is there a way to find out how much tax I have paid in 2015/16?


Call HMRC or sign up for a Personal Tax Account on gov.uk. That information is readily available which combines all the pay submissions from your employers, pension providers or DWP for each tax year. You should already have a P60 for that year from your employer if you were working, if not, request an Employment History Letter from HMRC.

I know because I work for HMRC (don't hate me for it )

So if one partner is not working at all and the other is earning more than £1150, that's good enough to be eligible?

ganon11 m ago

So if one partner is not working at all and the other is earning more than …So if one partner is not working at all and the other is earning more than £1150, that's good enough to be eligible?


You mean the recipient partner is earning more than £11500 in 17/18 but also does not earn enough to be a higher rate taxpayer.

16/17 - the recipient needs to earn more than £11000

15/16 - the recipient needs to earn more than £10600

mb0212 h, 57 m ago

Now the budget has gone through can people now earn £46,350 as their upper …Now the budget has gone through can people now earn £46,350 as their upper limit ? As it was £45,000 last year.


It is £45000 this year (2017:18) and not £46350 until next year (2018:19).

And in Scotland it is only £43000 this year and not yet known for next year.

None of which is relevant to this "deal". You need to be a basic rate payer and some who earn more than £43000/£45000 can still be a basic rate payer.
Edited by: "sportyfae" 30th Nov

ganon1 h, 54 m ago

So if one partner is not working at all and the other is earning more than …So if one partner is not working at all and the other is earning more than £1150, that's good enough to be eligible?


Whether you are working or not is totally irrelevant. Entitlement for Marriage Allowance is based on what tax rate you pay (or don't pay!). So broadly it is dependent on your income. Being eligible and being able to benefit from it are two separate things as some of the earlier posters have discovered.

If you have no taxable income at all you could apply but remember the person applying cannot benefit from this, it is the receiving spouse who gets the tax benefit.

And remember each tax year is different so what might be possible today wouldn't necessarily make sense to do for a previous year i.e. person not working earning now was earning in previous tax years
Edited by: "sportyfae" 30th Nov

Good way to promote marriage...

Why are you not eligible if you're a higher rate tax payer? Doesn't seem very fair.

"The marriage tax allowance (MTA) started on 6 April 2015. It was worth:
£212 in year 1
£220 in year 2
£230 in year 3"

Does it mean the first year is for the earning from April 2014 to April 2015?

£212 in year 1 = April 2014/April 2015
£220 in year 2 = April 2015/April 2016
£230 in year 3 = April 2016/April 2017

Ask David Cameron, it was all his idea

ljbutchik079 h, 43 m ago

be careful to those are not eligible and claiming this as I did a year …be careful to those are not eligible and claiming this as I did a year ago which I did not know at that time and now inland revenue is asking me to pay it back


Then just pay it back. It wasn't for you in the first place, so I don't see the big deal.

Is this just in the year of death, or going forwards each tax year until the spouse passes on to reunite the couple?

Year of death and earlier (if appropriate). But it only started in 2015:16 so you cannot go back further than that.

There's literally no incentive to be a middle earner in this country.

As I earn around £52k a year I don't get to benefit from this at all (even though it would effectively lift me out of 40% tax).

Also, I have to pay back some of my child benefit.

Also I can only get tax free childcare vouchers for the lowest amount.

The system is weighted to support those at the top and those at the bottom. Stuck in the middle you get nothing

goldust2 m ago

There's literally no incentive to be a middle earner in this country.As I …There's literally no incentive to be a middle earner in this country.As I earn around £52k a year I don't get to benefit from this at all (even though it would effectively lift me out of 40% tax).Also, I have to pay back some of my child benefit.Also I can only get tax free childcare vouchers for the lowest amount.The system is weighted to support those at the top and those at the bottom. Stuck in the middle you get nothing


How on earth would this stop you paying 40% tax????

Higher rate earners can get some tax savings by contributing to a private pension or making gift aid donations.

This pushes your basic rate band up, saving you tax and may also push your adjusted income back into the threshold in which you can take advantage of the marriage allowance.

Also if one partner was born before the 6th April 1935 (I may have the date incorrect) you may be able to benefit from an even bigger allowance. Probably a very small subset of people, but only one partner needs to be born before this date.
Edited by: "DamienB" 30th Nov

goldust10 m ago

There's literally no incentive to be a middle earner in this country.As I …There's literally no incentive to be a middle earner in this country.As I earn around £52k a year I don't get to benefit from this at all (even though it would effectively lift me out of 40% tax).Also, I have to pay back some of my child benefit.Also I can only get tax free childcare vouchers for the lowest amount.The system is weighted to support those at the top and those at the bottom. Stuck in the middle you get nothing


How does the system help those at the top more than at your level of earnings?
I can see why you might feel frustrated because you are right on the cusp for attracting the higher tax band and and losing child benefit, but I don't see how anyone higher than this middle ground is any better off in terms of incentives and benefits.

Am I missing something?

Well I think your definition of "on the cusp" probably differs to most. The normal threshold for higher rate tax is £43000 (or £45000 outside Scotland) so I'd hardly call £52000 on the cusp!

goldust15 m ago

There's literally no incentive to be a middle earner in this country.As I …There's literally no incentive to be a middle earner in this country.As I earn around £52k a year I don't get to benefit from this at all (even though it would effectively lift me out of 40% tax).Also, I have to pay back some of my child benefit.Also I can only get tax free childcare vouchers for the lowest amount.The system is weighted to support those at the top and those at the bottom. Stuck in the middle you get nothing


Fair point and it would appear that 10% of the country's hearts should bleat for you,not so sure about the 90% who earn less.

goldust22 m ago

There's literally no incentive to be a middle earner in this country.As I …There's literally no incentive to be a middle earner in this country.As I earn around £52k a year I don't get to benefit from this at all (even though it would effectively lift me out of 40% tax).Also, I have to pay back some of my child benefit.Also I can only get tax free childcare vouchers for the lowest amount.The system is weighted to support those at the top and those at the bottom. Stuck in the middle you get nothing


Why not increase your pension contributions to get you just into the 40% bracket? Then you can also claim this, and I don't know anything about child benefit but may help with that too?

sportyfae16 m ago

Well I think your definition of "on the cusp" probably differs to most. …Well I think your definition of "on the cusp" probably differs to most. The normal threshold for higher rate tax is £43000 (or £45000 outside Scotland) so I'd hardly call £52000 on the cusp!


Depends how much you sacrifice into your pension. You could quite easily be on £52k, pay 8k as salary sacrifice and then for this scheme your qualifying pay would be £45K.

I was recently offered a £10k payrise which i turned down, my employer would take 15% for my pension, tax would be 40%, my student loan is 9%, ni in this band 1%, then id jump from £50 to £60k net meaning i'd lose all my child benefit for 2 kids. From that £10k id be taking home less than £2.5k after deductions. Its simply not worth it for the additional work required when my wife could go out and get a job paying £10k and take home....£10k.

Many thanks for posting this info. I certainly wasn't aware of this new widows/widowers clause but it looks like my 82 year-old father-in-law will now qualify for MTA as he was born in August 1935 and my mother-in-law passed away in May 2015. so hopefully, I should be able to help him get the full back pay too.

ljbutchik0710 h, 31 m ago

be careful to those are not eligible and claiming this as I did a year …be careful to those are not eligible and claiming this as I did a year ago which I did not know at that time and now inland revenue is asking me to pay it back


You didn't know you weren't married?

My current scenario:
My mother and father are retired, my mother with a pension of ~£300 / month, my father with a few pensions putting him mid basic rate tax bracket.
They didn't have MArriage Tax Allowance applied.
My father has just recently died...

Can my mum look to backdate the Marriage Tax Allowance that my father could have applied for and therefore benefit from his backdated entitlement?

robertoegg2 m ago

My current scenario:My mother and father are retired, my mother with a …My current scenario:My mother and father are retired, my mother with a pension of ~£300 / month, my father with a few pensions putting him mid basic rate tax bracket.They didn't have MArriage Tax Allowance applied.My father has just recently died...Can my mum look to backdate the Marriage Tax Allowance that my father could have applied for and therefore benefit from his backdated entitlement?


Be very careful, if your father applied he (or the executors now,) would have extra to pay. The person giving away the allowance has to apply

Robbo1110 m ago

Many thanks for posting this info. I certainly wasn't aware of this new …Many thanks for posting this info. I certainly wasn't aware of this new widows/widowers clause but it looks like my 82 year-old father-in-law will now qualify for MTA as he was born in August 1935 and my mother-in-law passed away in May 2015. so hopefully, I should be able to help him get the full back pay too.


It could only apply for one year, 2015:16
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