Income Tax Payments
April 26th, 2007
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Question: what happens to one’s income tax when one gets married in the UK?
a colleague is about to marry a lady who is in full time work. when the lady stops work and goes to the university after getting married does the man’s income tax payments change or remain the same whilst the lady is in full-time higher eduction?
Answer: No changes – the two are taxed completely separately under UK law. There is no longer a married couple’s allowance (unless one of them was born pre 1935) so the marriage does not affect the tax, and independent taxation means he cannot, for instance, make use of her personal allowance or lower rate tax bands while she is not working.
Areas they could look at are child and working tax credits – as their joint income is decreasing they may have an entitlement if relevant. Alternatively, if they have any other income eg from investments, these could be put in her name to make use of PA and lower tax rates. Of course, he’d have to really trust her
and might be advised to take legal advice on this course of action.
Tax collection prospects healthier
The Revenue Department expects tax collections for fiscal 2010 to exceed targets by at least 10% thanks to the improved economic outlook and efforts to expand the tax base.
Incometax
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