Does your income make a difference to the amount of tax paid to the tax man?
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I'm a high earner so pay higher tax, my wife is part time and pays little tax. We have a rental property which is in both our names, would it make any difference in the amount of tax paid if it went into my wifes name only?
Answers (3)
Hi darry, I'm no expert on tax, but I know lots of people who do this, to take advantage of any un-used tax allowance, lower rates etc.
Nice to see you popping in again, true to your word. :-)
Yes, although both my husband and I are basic rate tax payers we split our rental income unequally to prevent either of us becoming higher rate tax payers. it is perfectly legal.
Thanks, with all of your feedback I can go and look into things without wasting my time, I thought this was the case. Eventually my wife may become an average earner again but thats a few years away yet. May as well take advantage while we can.
I guess she will have her own personal tax allowance, check out her tax code.Maybe the income could be offset against her tax allowance. You should phone your local tax area office and ask them, they are very helpful with information . Also you can go to the government's gov . org. pages and maybe factor in both your codes and see how much room for maneouvre there is given that you will have a joint income and joint limits etc.
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Fruticake, thanks I like to keep my word, and its a pleasing that everyone is so helpful. You will see more of me next year, been a very busy year for me with modenisation at work and doing up my home.