Can anyone advise me about tax and the marriage allowance?

[ssd]

I have transferred some of my tax allowance to dh, meaning my tax cose is now s1066, I think this means I can now earn 10660 a year before I pay tax. As I've had a few more hours this year I have already warned 10900 so far this year and I still have another month's pay on top to come, approx 890 to be added on top.
2 questions,

1. If I earn over 10660 but under the tax threshold of 11850 will I pay back the marriage allowance?
2. If I earn over the 11850 tax allowance will I pay back the marriage allowance?

I think I may earn just over the 11850 threshold but am not certain, am due to be paid on the 26th march but understand the tax year is up to the 5th April so am not sure exactly what my p60 will be as I'm not sure how the money earned between 26 March and 5 April are calculated?

[Fourmagpies]

You'll just pay tax on what is earned over your personal allowance, so anything over £10660 will be taxed at 20%. If you think this will also be the case for next year then it's worth cancelling the allowance. But if you're earning below the full personal allowance but higher than the adjusted personal allowance then as a couple you are still better off (though not possibly by much if you are nearer the full allowance).

The income included in the tax year is just what you have actually been paid, so your pay on 26th March will be included but anything you earn after that will be included in the next tax year.

[ssd]

Thank you

Can you tell me what will happen if I earn just over the full personal allowance of 11850

[Fourmagpies]

Sorry, been working today. It'll just be the same as above. You'll be taxed on the income over your personal allowance. You didn't know that your income would go over the allowance so you won't get a penalty if that is what you are worried about. But HMRC may automatically cancel the allowance for the next tax year. You can call them if you're not sure.

[ssd]

Thanks again.
One more question if you don't mind 🙂
On dh's wage slip I'm trying to figure out what will be on his p60, this is his final wage slip for this tax year
He's got 3 separate final amounts
TAXABLE PAY.. 21000
NI ABLE PAY YEAR TO DATE... 22600
PENSIONABLE PAY YEAR TO DATE... 22600
PENSIONABLE CONTRIBUTIONS.. 1600

Would his p60 show his earnings amount as 21000?

[Fourmagpies]

No, total earnings on P60 should be 22600. The reason taxable pay is lower than the actual pay is due to the pension contributions which have tax relief.

[ssd]

Thanks

[topcat2014]

P60 shows taxable earnings, and tax paid - so will show the £21000.

In your case, the pension is deducted before tax is paid.

[ssd]

I'm confused now!
I need to know what figure will be on the p60 as I'm trying to work out how much student loan dc will get next Yr and the difference between the figures of 22600 or 21000 to his loan would be a lot.
Can anyone else advise me here

[Allyg1185]

Can't really add much but my own personal experience with married tax allowance. It's been a major headache for us. The deduction that went to my husband meant that I had earned over my personal allowance since we got married in 2016. This generated 3 bills of over £200 each. I phoned them and was advised to cancel as I earn to close to the original personal allowance everyone gets.

We are now almost 6 months down the line from when we first applied and still getting problems. I am still receiving letters about the bills. Phoned again and was told to cancel the application. Stated that my husband already did this. They agreed that he had but had only cancelled the current tax year and he would have to phone again to cancel the two previous tax years. He phoned again and cancelled and was given confirmation that it's all been cancelled and the bills will not need to be paid as the first cancellation phonecall was made within days of realising our mistake and my husband never recieved any tax rebate or any cheques etc.

Heres hoping its over with no but its the tax office so I highly doubt it.

[ssd]

That sounds a nightmare!!
Am hoping someone confirms eith post above, I just need to know dh's p60 amount for sure as dcs will be applying for student finance as well

[Fourmagpies]

Sorry it will be taxable income on the P60 so the lower amount.

[BritInUS1]

P60 will show taxable pay

[ssd]

Thanks for that.

[topcat2014]

So that's 3 votes for taxable pay then :)

I was thinking of this thread as I printed the P60s at work yesterday!

[ssd]