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Would you like the taxman to give you some extra spending money?


By: Chris Carter Date: 23 January 2020
Category: Norwich,Lovewell Blake Financial Planning,Tax,News
Department: Financial planning

If you are a non-taxpayer and your spouse/civil partner is a basic rate tax payer then the taxman may well answer, “Just contact me and we’ll sort it out”.

How much?

Since April 2015 the non-tax payer has been able to transfer up to one tenth of their Personal Allowance (the first part of taxable income on which tax is not charged) to their spouse/civil partner, thus increasing the spouse’s Personal Allowance.

Your Personal Allowance for the tax year 2019/20 is £12,500. If you have taxable income below this amount then you may transfer one tenth of your unused Personal Allowance to your spouse.

If your taxable income is less than £11,250 this allows you to transfer the full unused Personal Allowance of £1,250 to your spouse, on which no tax is payable and you will increase your joint income by £250. This results from your partner not having to pay 20% Income Tax on their increased Personal Allowance.

If you qualify to do the same exercise for each year right back to 2015 then you may receive an extra £1,150 in your pockets. This may take a while to sort out, with a new tax code or through a self-assessment return. If you do want to make a claim back to 2015/16 you only have until 5 April 2020 to do this.

How do I get my money?

Simply apply online through www.gov.uk or call the tax helpline on at 0300 200 3300. You will need to quote your National Insurance numbers.

Or, if you prefer, do nothing and gift the taxman your hard earned cash.

If you would like to talk to someone about financial planning, please do contact us to speak to one of our trusted advisers
 
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