2 UK tax questions - Can a married couple file taxes jointly? Do you have to pay NI on Bonus as well?
2 UK tax questions - Can a married couple file taxes jointly? Do you have to pay NI on Bonus as well?
I am a high tax - 40%payer whereas my husband is in the low bracket - is it possible to file for combined income to pay lower taxes?
In my bonus check there was a NI deduction as well - someone suggested that was a mistake - Can any expert confirm please?
Answers:
remember_lizzie: Each individual is responsible for their own tax on their earnings, therefore a married couple cannot file taxes jointly.
NI deductions is payable on all earnings until retirement age.
2007-03-12 13:07:31
2007-03-12 13:07:31
veilofmistiness: In answer to your first question - No. As stated by the chap above each person is responsible for their own tax and consequent returns.
Well done on having a bonus check. Not many working class people get those anymore ;o)
NI will be due on the bonus but in some cases if you have already paid your maximum contributions for the year and 40 % tax bracket may suggest you have then if you are an "Employee" you may indeed have paid too much. If, however you are a Company Director then the NI cap does not apply and you will continue to pay NI on whatever you earn.
2007-03-12 14:45:21
2007-03-12 14:45:21
Chosen Answer
SCARAB: As the previous answers have suggested, a married couple cannot fiel a joint tax return and there is no transfer of allowances between married couples. The only thing you can do is if you have any unearned income, such as savings accounts etc, you could transfer them to your husband so that they are in his name only, that way there will not be any further tax to pay on the interest income from that point onwards. Unfortunately there is nothing you can do about employment income. Regarding your bonus. If you are a 40% tax payer then chances are your earnings are in excess of the upper earnings limit for NI, so your bonus will be liable on for the uncapped element of NIC, which is 1%. Therefore your NI contribution on your bonus should be 1% of the bonus. This applies regardless of whether you are a company director or a regular employee. The only difference being a company director makes to NI contributions is that the upper earnings limit is looked at on an annual basis, rather than weekly/monthly. This would only make a difference if you were paid a bonus early on in the tax year.
2007-03-13 12:46:54
SCARAB: As the previous answers have suggested, a married couple cannot fiel a joint tax return and there is no transfer of allowances between married couples. The only thing you can do is if you have any unearned income, such as savings accounts etc, you could transfer them to your husband so that they are in his name only, that way there will not be any further tax to pay on the interest income from that point onwards. Unfortunately there is nothing you can do about employment income. Regarding your bonus. If you are a 40% tax payer then chances are your earnings are in excess of the upper earnings limit for NI, so your bonus will be liable on for the uncapped element of NIC, which is 1%. Therefore your NI contribution on your bonus should be 1% of the bonus. This applies regardless of whether you are a company director or a regular employee. The only difference being a company director makes to NI contributions is that the upper earnings limit is looked at on an annual basis, rather than weekly/monthly. This would only make a difference if you were paid a bonus early on in the tax year.
2007-03-13 12:46:54