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Original poster

Benefits of transferring tax codes? And is it permanent?

11 replies

KatyMac · 30/12/2018 11:58

DH is taxed on his pension
I earnt much less this year due to illness/unemployment

I haven't read it all yet but I am considering transferring some of my tax free allowance to him

Is this reversible and easy? Is it a silly idea?

Last year his tax was all page but this year he has a tiny se income so I will have to do a self assessment for him

OP posts:
JustMarriedAndLovingIt · 30/12/2018 12:29

I thought if you earnt less than (I think) £11.6k pa you can transfer the excess tax allowance to your spouse. Martin Lewis will be able to explain whether this counts for pensions.

Original poster
KatyMac · 30/12/2018 12:50

Thanks I'll look at Martin Lewis

OP posts:
Original poster
KatyMac · 30/12/2018 13:04

I think if I apply and it just happens

If I earn more I can change it on my personal tax allowance

It offered backdating but DH only started paying tax from April this year

So fingers crossed

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Santasballsack · 30/12/2018 16:55

I did this while i was at home with the dc. Now im back at work full time ive reclaimed it but it won't revert back til 5th april 2019.

Stickerrocks · 30/12/2018 17:06

You can transfer £1190 of your personal allowance to your DH if you didn't have income above £11,900 and your DH is a basic rate tax payer on his pension. Even if your income is close to £11900, it may still be worth making the transfer and possibly having to pay a little tax yourself, if some of your income is taxed at a lower rate. The online transfer application needs to be completed by you, not your DH and only takes a couple of minutes to save £238. You can also look at earlier years if, for example, your income dropped part way through 2017/18.

Original poster
KatyMac · 30/12/2018 17:51

Neither of us had enough income to be taxed until April 17 so I don't think we need to backdate it (DH got his pension on his 65th birthday in August so.....)

The online thing is really easy!

So frustrating we will have to do a self assessment for less than £200!!

OP posts:
Stickerrocks · 30/12/2018 21:22

You shouldn't have to do Self Assessment. Several of my clients don't. Put in the application and your DH shouldn't have to if his only income is his pension. Give HMRC a ring and (If you can get past being in a queue) they are normally really helpful.

Original poster
KatyMac · 30/12/2018 21:52

No he earnt about £200 over and above his pension (bit of a one-off fun job) the need to do SA is because of that

OP posts:
hugoagogo · 30/12/2018 21:56

I did it for a while, very straightforward and simple to sign up for.
More complicated to cancel and doesn't come off until the beginning of the next financial year. Very annoying when you get a better job in April.Angry

Stickerrocks · 31/12/2018 08:25

Has he had a Notice to Complete A SA Return? You can often just call them to inform them of one-off income and they will adjust accordingly. HMRC want to keep as many people out of SA as possible as it raises more problems for them!

Original poster
KatyMac · 31/12/2018 09:32

Ooo that sounds good news

I'll see how it goes, he enjoyed the work so if he gets offered more it might turn into a little se job if not I'll just ring them in March

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