Marriage allowance and self-employed

06 March 2015

As previously announced, the new marriage allowance comes into effect from 6 April 2015 and you can now register with HMRC. Full guidance is not yet available however we were asked whether or not an individual who is self-employed could claim it.

The marriage allowance means a spouse or civil partner who doesn’t pay tax, or doesn’t pay tax above the basic rate of income tax, can transfer up to £1,060 of their personal tax-free allowance to a spouse or civil partner – as long as the recipient of the transfer doesn’t pay more than the basic rate of income tax. At a recent Employment Payroll Group (EPG) meeting it was confirmed by HMRC that someone who is self-employed and whose spouse/civil partner is not in employment, can transfer the £1,060 of their allowance.

This also applies to every other worker in employment who doesn’t pay above the basic rate of income tax, whose spouse/civil partner is not in employment.

Karen Thomson, CIPP Associate Director of Policy, Research, and Strategic Visibility and EPG Co-chair, has requested that HMRC provide further guidance on GOV.UK to reflect this.

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