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Where Taxpayers and Advisers Meet

Partnership - transferring partner's tax allowance to me

johnsm13
Posts:1
Joined:Thu Dec 30, 2021 9:10 pm
Partnership - transferring partner's tax allowance to me

Postby johnsm13 » Thu Dec 30, 2021 9:17 pm

Hello everyone,

My wife and I are in business as a partnership. I also have a part-time salaried job where my salary is taxed at source.

The past couple of years have been very tough and my salaried job has been just about our only source of joint income. It takes me above my personal tax allowance.

All my wife's earnings would go via the partnership, but over the past year she has earned very little so she still has most of her personal allowance intact.

Would I be able to use her allowance via the partnership to get a rebate on the tax I have been paying month by month through my part-time job?

Thanks,
Mike

pawncob
Posts:4877
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Partnership - transferring partner's tax allowance to me

Postby pawncob » Fri Dec 31, 2021 10:57 am

https://www.gov.uk/government/publications/transferable-tax-allowances-for-married-couples-and-civil-partners
With a pinch of salt take what I say, but don't exceed your RDA

D&C
Posts:69
Joined:Mon Nov 25, 2019 11:35 pm

Re: Partnership - transferring partner's tax allowance to me

Postby D&C » Fri Dec 31, 2021 8:57 pm

The short answer is no, you cannot do anything to use some of your spouse's Personal Allowance.

But when she completes her own individual Self Assessment return she could apply for Marriage Allowance for the 2020/21 tax year and you would then receive a tax reduction of £252 against your Self Assessment liability.

The tax reduction would be less if don't have a liability of at least £252 for the 2020/21 tax year.


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