Perfect Valentines (tax) Gift...
Here at Money Bee, there's a firm belief that NOTHING is more sexy than giving your beloved a nice tax saving.
So, in the spirit of the pending Valentine's day love-fest, here's a guide to the HMRCs oh-so-romantic Marriage Allowance.
In short, the allowance lets you transfer 10% of your personal allowance to your spouse. of course, there are some criteria you have to meet to be eligible.
* the lower earner must normally have an income less than the personal allowance (£11,850 for tax year 18-19)
* the higher earner must pay the basic rate of tax (i.e. have an income of more than £11,851 but less than £46,350)
* you must be married or in a civil partnership.
If you can say 'I do!' to all of these, then you should be able to give your higher-earning spouse 10% of your allowance, which means that they will be able to earn a bit more before they start paying tax.
In cash terms, this could save you up to £238 a year (after all, what's theirs is yours, right?). And what's adds the cherry to the top of this delicious Valentine's cake is that it can be backdated to any of the years from April 2015 where you were eligible! Hurrah!
Here's a link to the bit of the HMRC that explains it a bit more and also allows you to calculate how much you could save as a couple: CLICK HERE
And, as ever, please get in touch if you have queries about this or anything else financey - or just to say Happy Valentines Day! Say hello