One in four missing out on Marriage Allowance tax break

Fewer than one in four couples eligible for the Marriage Allowance are claiming it, according to HMRC.

The Marriage Allowance allows a person to transfer £1,100 of their personal allowance to their spouse or civil partner. It can mean a tax reduction of up to £220 in this tax year, and can be backdated to April 2015 to reduce tax paid by up to £432.

To benefit as a couple, the lower earner must have an income of up to £11,000, while the higher earner should earn no more than £43,000.

In summary, you can take advantage of Marriage Allowance if:

• You’re married or in a civil partnership;
• You don’t earn anything or your income is under £11,000;
• Your partner’s income is between £11,001 and £43,000.

Those in receipt of pensions or living abroad, who still get a personal allowance, are also eligible.

The Marriage Allowance is different to the Married Couple’s Allowance, as the latter is only available to those born before 6 April 1935.

There is more information on tax rates and allowances here: http://www.williamsdenton.co.uk/resources/tax-rates-and-allowances

For a review of your tax allowances, contact Williams Denton on Bangor 01248 670370 or Llandudno 01492 877478.

Digital tax system delayed

Business in North Wales will not have to move to a digital taxation system until at least 2019, it’s been revealed.

HMRC has announced it is delaying the roll out of the new digital system following concerns from businesses.

Speaking at the HMRC annual conference, financial secretary to the Treasury Jane Ellison MP said: “You told us that the smallest businesses might struggle to keep their records online – so we exempted over a million more landlords and small businesses from the proposed changes.

“You also told us that even slightly larger businesses might need more time to prepare for the new system – so we have proposed deferring the introduction of any changes to 2019 for those businesses too.”

The plans are touted as aiming to create one of the most digitally-advanced tax administrations in the world.

They would see the end of the annual tax return to be replaced by a personalised digital service through which taxpayers would be able to send and receive information to HMRC at the click of a button.

However, many business owners voiced concerns that the plans could also mean quarterly rather than annual tax returns, putting an additional burden on SMEs.

Janet Jones of Williams Denton said: “The delay is a sensible move and likely to be a relief to many North Wales businesses, which may have struggled to implement the changes on the initial timescale.”

HMRC has published six consultations on its proposals for a new digital tax system. To view the documents and have your say, click here.