Allowance transfer - gone wrong?

[colinpost]

2 months ago, my wife transferred part of her allowance to me, as she will not reach the £11000 allowance limit.
All well and good, as I received last year’s £210 back tax, while this month paid even less tax than normal.
Now the bomb shell – My spouse was expecting £400 salary (partitime work), only to be hit with approx. £200 tax bill – Gulp!
So was happened here? 

[JRG]

Firstly, you need to be aware that the married persons transfer will not only increase your personal allowance but will also decrease your wife's personal allowance.

For 2015/16 your personal allowance would have increased by £1,060, from £10,600 to £11,660, and your wife's personal allowance would have decreased by £1,060, from £10,600 to £9,540. Therefore, if your wife earned more than £9,540 she would be liable for 20% tax on the excess.

For 2016/17 your increased personal allowance will be £12,100 (£11,000 + £1,100), and your wife's personal allowance will be £9,900 (£11,000 - £1,100). Therefore, if your wife earns more than £9,900 she will be liable for 20% tax on the excess.

It's always worth applying for the married persons transfer as you will never pay more tax than if you didn't.


Secondly, if your wife's income was only £400 and her tax bill was approx. £200, then she must check the figures and tax code on her P60.