Marriage allowance

[Paralytic]

Doh.. Still waiting eagerly for what 4. Is then.

Ability to read and comprehend points 1 to 3.

[northernladuk]

Are married. (which is point 1.)

Doh.. Still waiting eagerly for what 4. Is then.

[Craig@Clarity]

4. Be married?

Are married. (which is point 1.)

[northernladuk]

4. Be married?

[Craig@Clarity]

Im pretty sure I know the answer to this but...

My accountant thinks my partner and I can claim marriage allowance, because she earns less than 12k a year.

She owns 15% of myco so gets a small dividend every year.
That dividend puts her over the 12k personal allowance.

My accountant says his interpretation is that dividends don't count towards it so we can claim... I think that sounds wrong.

Opinions?

Dividends do count. It's all based on income. In order to utilise marriage allowance you have to fulfill 3 criteria:

1. Married or in a civil partnership
2. Not pay income tax or income is below £12.5k - So if salary + dividend (taking into account dividend allowance means you don't pay income tax, this criteria is fulfilled)
3. The other partner pays basic rate tax

[northernladuk]

Realistically it's a few hundred quid.

I'm not going to lose any sleep over erring on the side of caution and not claiming.

But it's an interesting one so nice to see an answer.

[Snarf]

Realistically it's a few hundred quid.

I'm not going to lose any sleep over erring on the side of caution and not claiming.

[WordIsBond]

HMRC guidance just says "income" which would include dividends.

This discussion appears to just assume that dividends are included, since it talks about the interrelation between the dividend allowance and the marriage allowance.

To me that suggests that your accountant is mistaken. But HMRC guidance has been wrong before, and so have internet articles on taxation. So he could be right but my presumption is he's not. I'd be asking my accountant for the legislation and/or government guidance / HMRC manual entry that supports his view. If he can't come up with something substantive to counter the guidance and that article I wouldn't claim.

IANAA.

[Snarf]

Im pretty sure I know the answer to this but...

My accountant thinks my partner and I can claim marriage allowance, because she earns less than 12k a year.

She owns 15% of myco so gets a small dividend every year.
That dividend puts her over the 12k personal allowance.

My accountant says his interpretation is that dividends don't count towards it so we can claim... I think that sounds wrong.

Opinions?