05 May 2015/2016 Self Assessment – Key Points to Consider
Marriage Allowance – Transfer of personal allowance
Marriage Allowance lets the lowest earner transfer £1,060 of their personal allowance to their husband, wife or civil partner. This could reduce your tax by up to £212. You can claim married couple’s allowance if all the following apply:
- You’re married or in a civil partnership
- You’re living with your spouse or civil partner
- One of you was born after 6th April 1935
If you have any further queries on the above or are unsure if you will be eligible, please contact someone from our tax team who will be able to advise you further.
High Income Child Benefit Charge
Special rules apply to Child Benefit where the income of either the claimant or their partner exceeds £50,000. If you are in receipt of child benefit please could you supply the following:
- The name and dates of birth of children for whom you or your partner have claimed child benefit
- The amount of Child Benefit received during the year
- A note of your partners total income
Student Loan
If you have a student loan, it is possible that repayments will be generated via the self assessment system. Therefore, if you have an outstanding student loan please let us know the appropriate outstanding balance.
New Dividend Taxation
Please note that the legislation on how dividend income is taxed is changing from April 2016. The current notional tax credit of 10% will be abolished. This will be replaced by a tiered tax charge and will include a £5,000 dividend allowance. Any dividend income that exceeds the dividend allowance will be taxed as follows:-
- 7.5% up basic rate band
- 32.5% up £150,000
- 38.1% from £150,001
If you have any further questions, please don’t hesitate to get in touch with our Tax Planning team.