Hi I’m Tim from SONNET, the money-saving
Chartered Certified Accountants. Is there a tax advantage to being married? Yes, there are tax advantages! Let’s look at income tax, for instance. Now, each individual gets a £12,000 personal allowance, which means they don’t pay income tax on that amount of money. For a couple that would mean that they could earn £24,000, roughly, and not pay income tax. But what if it’s
just one of the spouses that’s earning that amount and
the other isn’t? You can’t share it, totally – you are paying income tax!
Is there anything you can do about it? Yes there is – there’s something called
the marriage allowance – it allows you to transfer 10% of one of the spouses
personal allowances to the other spouse, if you’re a standard rate taxpayer. Is it worth it? Well think about it – that could be worth up to about £240 a year and you can backdate it and go back and claim for previous years
as well – so that’s quite a few pretty nice meals out! So I’d say that’s worth
it if it’s easy to do. It is easy to do!! It’s just a few minutes on the HMRC
website – job done. You don’t have to do anything again until your circumstances
change. That’s the sort of advice that I’d be giving to our clients here at SONNET accountants and the sort of advice your accountant should be giving you as
well – looking at the whole picture. There are other tax saving benefits – things you can do for being a married couple. So if your accountant isn’t
considering your whole family then they’re probably missing out on
something when it comes to a tax point of view. So, anyway, that is the marriage
allowance. Quick summary – £240 a year, up to, tax deduction for you Remember, if you like this tip then like it, share it, follow us on social
media – you’ll be getting lots of tax saving advice. But for now this is Tim Burton
from SONNET- the money-saving Chartered Certified Accountants.