#TaxTips #HMRC #MarriageAllowance
Hey everyone! 👋 Quick tax question for you: Do I need to cancel marriage allowance on the HMRC website once my spouse starts earning, or will it automatically cancel?
Here’s the situation: I claimed marriage allowance for the year ended April 2024, but now my spouse has started earning from June 2024 onwards. There’s a possibility that her income might go above the personal allowance limit by the end of the year. So, what should I do?
Possible solutions:
– It’s best to proactively notify HMRC and cancel the marriage allowance on their website to avoid any issues.
– Keep an eye on your spouse’s income to see if it exceeds the personal allowance limit.
Any other tips or suggestions? Let’s help each other out! Thanks in advance for your insights! 💡 #TaxAdvice #FinancialPlanning
It will stay in place till the end of the tax year. The difference should be about £21 so you can just send her £21 on payday. Overall there will be no difference in tax paid.
It won’t cancel automatically mid-year, and if her pay only “might” go over the personal allowance this tax year, you don’t really want it to.
If she does earn more than the personal allowance, she’ll pay extra tax to equal to the discount you get (so no difference to your combined income). If she earns 90-100% of the personal allowance, the amount you gain will be more than the amount it costs her.
Your spouse needs to cancel it.
https://www.moneysavingexpert.com/family/marriage-tax-allowance/