Could The Tax Man Pay For Your Wedding Cake?

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admin-flintriver

Date Posted:

May 17, 2016

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Ok, before you get too excited, don’t expect Her Majesty to stump up £20,000 for the average UK wedding but with a marriage allowance introduced in 2015, married couples could see their income boosted by up to £220 this tax year. Granted, it may only be enough for a local registry office.

Would this allowance be enough to entice you down the aisle?…………Probably not I suspect!

Already married?

Too many married couples today are not aware that HMRC have such an allowance but within minutes, it could be on its way to you. Of course being HMRC, not everyone will qualify for the allowance.

Here are the requirements:

  • You must be married or in a civil partnership
  • One of you must be earning below £11,000 (or not earning)
  • One of you must earn between £11,000 and £42,999
  • Both of you must be born after 6 April 1935

If you meet the requirements then BINGO, you could be quids in.

How it all works:

In a nutshell without the boring accountancy jargon, the individual earning less than £11,000 is not fully using their tax free personal allowance and HMRC have very kindly allowed them to transfer up to 10% of this to their spouse giving them a higher tax free earning limit. This means the receiving spouse can earn up to an extra £1,100 without paying tax at 20%, saving up to £220. Unfortunately, you will not see an instant boost to your bank balance but you or your spouse will receive up to an extra £18.33 per month in your pay packet. However, act now and you can backdate the allowance to last year and get this year’s and last year’s allowance (up to £432!!!!)

How to get your hands on the cash?

Very simple:

Visit https://www.gov.uk/marriage-allowance or Call: 0300 200 3300

Have both your NI numbers and proof of identity to hand.

£220 may not seem a lot but hey, it’s free cash for 5 minutes on your computer.

At Johnston Smillie we support and guide clients through all aspects of tax planning. If you would like to discuss any aspect of this please contact Angie Harvey on 0131 317 7377 or angie.harvey@jsca.co.uk and she will ensure you are connected with the most relevant and available member of the team.

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