Married, SAHM - why don't I get to use my personal allowance?

[Daffodilly]

Can someone help me understand this. DH earns a good income (higher rate taxpayer). Partly because he works long hours to earn this, and also because we can fortunately afford to and I want to, I am a SAHM.

My question is that because I don't work I don't get to claim any of my tax free allowance. Why can't I give him my tax free allowance as he is working to support me?

I'd genuinely like to understand the rational as it seems unfair (though I realise just one of many things that aren't fair in our tax system)?

Sorry to shout

"You don't save 40% tax by forming a limited company"

No, but a high earner can "employ" their SAHP in their limited company, thus splitting their income and effectively transferring their tax allowances.

I thought David Milliband saved in the order of 30-40% in tax by forming a limited company for his income from speeches/lectures...

There are times when a limited company makes sense. For example like an electrician where you might legitimately get your partner to take and book jobs and therefore have her on the payroll.

It isn't legitimate to go into the same place of work every day (a company), work all your hours there and only earn income from that work, work as an employee (complicated definition of what that is but just to simplify) and then not pay PAYE/NI but run your earnings through a company. HMRC investigate quite aggressively people who do this. If you know someone who is getting away with it now, I would recommend they stop as HMRC will go back many many years when they find them!

And this isn't a 'high' earner thing. I know plenty of lower paid workers who have chanced their arm doing it. But as I said, in many cases it is a genuine thing.

If you pay someone a wage for the only purpose of avoiding tax, that would be fraud. Also the govt are tightening up on people forming companies for the sole purpose of reducing tax. Its not widely reported in the news because its not particularly exciting but sensible changes do appear to be taking place.