Marriage Tax Allowance

[Emma362]

We got married June last year and I'll earn less than £12500 this current tax year so I've applied to see if DH will get some tax back for this time. My issue is, I've recently started a job with more hours, and I may or may not earn over £12500 a year from now on, i won't know until I get close to the end of the tax year. So what happens if I do earn more? Do I have to inform HMRC if I do/think I will? If I earn enough to pay tax one month will they automatically change DH tax code back?

No. Your tax code will change to take into account that you have transferred part of your allowance to your husband. That means you can earn less before paying tax.

Does my tax code only change if I earn over £12500, is that right?

It's ok, I've just seen my tax code has changed already, not sure if it will benefit us or not

Essentially, it won't benefit you at all if you end up going over £12,500.

You won't be adversely affected as all that will happen is that you will pay more tax while your husband will pay an equivalent amount less.

So I wouldn't worry about it. If you are sure to go over next year then just ask HMRC to remove it again.

If you're not sure, I'd continue to transfer. If you do earn 12.5k or more then you gain nothing and lose nothing, its just you giving him money. Whereas if you earn below the threshold but haven't transferred, you're jointly worse off.