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Where Taxpayers and Advisers Meet

Income Shifting between spouses

suggsy1980
Posts:5
Joined:Wed Jan 20, 2016 8:00 pm
Income Shifting between spouses

Postby suggsy1980 » Tue Jan 29, 2019 8:02 pm

Hi there,
My wife and I are wondering how we can pay less tax. My wife income has gone into the higher tax bracket now she has become a share holder of the company she works for. She now has to pay about five grand extra tax. Is it possible for me to take some of the burden being I am not in the higher tax bracket by her giving me some of the income?

Thank In advance

Matt.

bd6759
Posts:4262
Joined:Sat Feb 01, 2014 3:26 pm

Re: Income Shifting between spouses

Postby bd6759 » Tue Jan 29, 2019 9:09 pm

Your wife gets taxed on her income. You cannot get taxed on it because it I snot your income.

suggsy1980
Posts:5
Joined:Wed Jan 20, 2016 8:00 pm

Re: Income Shifting between spouses

Postby suggsy1980 » Tue Jan 29, 2019 9:21 pm

Is she not able to make some of her income mine?

darthblingbling
Posts:698
Joined:Wed Aug 02, 2017 9:09 pm

Re: Income Shifting between spouses

Postby darthblingbling » Wed Jan 30, 2019 9:03 am

Simply put, unfortunately not in this scenario

AdamS93
Posts:268
Joined:Tue Sep 26, 2017 6:28 pm

Re: Income Shifting between spouses

Postby AdamS93 » Wed Jan 30, 2019 11:55 am

Retrospectively, there is nothing you can do, you can't rewrite history unfortunately.

Moving forward, you may be able to do something but I am guessing the shares your wife has received is from some sort of employee share scheme meaning there will be restrictions on what she can do with them (i.e. gift them).

Everyone is taxed individually in the UK, not as a couple, so you can't put your wife's income on your return.

suggsy1980
Posts:5
Joined:Wed Jan 20, 2016 8:00 pm

Re: Income Shifting between spouses

Postby suggsy1980 » Wed Jan 30, 2019 11:59 am

Ok, Thanks for all reply's. I'll find out whether there are restrictions.

pawncob
Posts:5090
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Income Shifting between spouses

Postby pawncob » Wed Jan 30, 2019 12:50 pm

If she's in a higher bracket because of dividend income, she may be able to give you the shares.
With a pinch of salt take what I say, but don't exceed your RDA

suggsy1980
Posts:5
Joined:Wed Jan 20, 2016 8:00 pm

Re: Income Shifting between spouses

Postby suggsy1980 » Wed Jan 30, 2019 2:04 pm

Her dividend puts her in the higher bracket. I am not in the higher bracket.


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